Essence of financial relations and tasks of the financial system. Subjects of financial relations

In the economic life of each state, finance is a rather complex phenomenon. With their help, the state redistributes a significant part of the GDP, which is the main object financial relations. In this regard, finance is usually considered as a system of relations that are formed in society in the process of distribution and redistribution of GDP.

object financial relations is the gross domestic product, i.e. the cost of goods and services produced by subjects of economic relations in the field of material and non-material production for a certain period of time.

In financial relations are involved such subjects: state, region, business entity and citizen.

Concerning subjects financial relations are:

State - national and local finance;

legal entities - finances of business entities;

individuals – finances of individuals.

General government finance- these are centralized monetary funds that are formed with the aim of concentrating financial resources at the disposal of the state and directing them to finance national needs.

local finance include local budgets and off-budget funds, which are formed in this territory.

Finances of business entities act as the starting point of the financial system. They serve the industry material production where GDP and national income are created. Sources of financial resources of the state are formed mainly by business entities.

Population finance include personal funds. A citizen who receives income has at his disposal a certain amount of money, but they are not yet finances. This money will become finance when its owner creates an appropriate fund and invests it in securities, lends to an individual, etc.

The rights and obligations of the subjects of financial relations are established and regulated by the financial and legal norms of the state.

4. Cash funds - material carriers of financial relations

Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources.

All processes of economic life, where finances take part, have monetary expression. The economic life of the state constantly requires the creation of monetary funds to meet various needs. The size of these funds characterizes quantitatively and qualitatively the scale of activities and financial capabilities of the state, economic structure, citizen. These funds are material carriers financial relations.

The need to form monetary funds for various purposes arises both for the state and for other subjects of distribution relations (enterprises, individuals). This need predetermines certain economic relations.

Providing with the help of finance the necessary conditions for the creation, distribution and use of the gross domestic product in the country is achieved precisely through the organization of various funds of financial resources at all stages of the activity of the state, business structures and every citizen. Funds of financial resources that serve economic processes differ in the method of creation, directions of use, the interests of economic entities and the ultimate goals of the corresponding type of activity.

to centralized funds include: the state budget, local budgets, other budgetary and off-budget social funds, state property and personal insurance funds, state credit, as a specific link public finance.

At the enterprise level, there are decentralized funds- depreciation, wage funds, special and others.

There are differences in the forms and methods of formation and use of monetary funds.

The formation of monetary funds of enterprises is carried out in a decentralized manner, that is, enterprises in the process of economic activity independently form and determine the size of monetary funds. At enterprises, funds are created to ensure expanded reproduction, to ensure measures for economic and social development enterprises.

National finances are formed by transferring funds from enterprises, organizations, institutions and the public in the form of taxes, fees, mandatory payments and voluntary contributions. Centralized monetary funds are created in order to obtain certain financial resources to finance the functions of the state provided for by the Law "On the State Budget of Ukraine", as well as to finance state economic and social programs.

22.2. financial policy. Subjects of financial relations

In our economic literature, in a broad sense, it was customary to understand financial policy as the unity of the objective and the subjective. The objective side is that the policy is built in accordance with the requirements of economic laws. It follows that the success of the financial policy largely depends on the knowledge, identification of economic patterns. At the same time, politics is always subjective, as it is implemented by people, their will and efforts.
Financial policy is a set of government measures to mobilize financial resources, their distribution and use on the basis of financial legislation. In this case, the objective moments are basic in the construction of financial legislation; subjective - these are the actions of people to mobilize financial resources, their distribution and use for the implementation of strategic goals, specialized programs and for the implementation of the current national economic activity.
In a crisis, financial policy, on the one hand, is aimed at stopping the decline in production, as well as at stimulating its development, at concentrating financial resources for their investment in priority sectors of the economy; on the other hand, to contain social programs, reduce defense spending, etc.
With the transition of the economy from a crisis to a state of sustainable development, the direction of financial policy changes. The determining condition is the achievement of sustainable general economic equilibrium development.
The subjects (carriers) of financial relations are states, enterprises, firms, institutions, organizations, sectors of the economy, regions of the country and individual citizens. The connections that arise between them regarding the formation and use of funds of funds, through the relevant institutions, act in the form of financial relations. These relations are formed in the form of groups of relations:
♦ between the state and local authorities;
♦ between the state and enterprises;
♦ between firms;
♦ between firms and banks;
♦ between the state and public organizations;
♦ between the state and the population.
Financial relations cover the system of payments to the state budget and various funds government organizations; mutual payment obligations carried out on the basis of agreements between firms; relations between enterprises and banks regarding the receipt and use of loans; relations between the state and the population associated with the receipt of various types of transfer payments, with the sale of loans, with the organization of drawings for lottery tickets, etc.

Resource allocation function associated with the provision of certain benefits to society by the state, which the private sector cannot and does not want to provide: internal and external security (police, army); creation transport network(roads, lighting); construction of urban engineering communications (water supply, sewerage), etc. The provision of such benefits implies that part of the available production resources will be spent differently than it would be done by the private sector, i.e. resource allocation will be carried out.

aim income redistribution functions is to adjust the distribution of income and wealth to achieve greater social justice. The redistribution of income is based on two basic rules. First, those with a higher income contribute to the society's fund, by their relative size, a share that exceeds the public assistance they receive. Secondly, people with low incomes receive more from the state than they invest in the general financial fund.

Economic stabilization function carried out through the implementation of target settings economic policy aimed at ensuring high employment, price stability, constant and commensurate economic growth.

In addition to these, the financial system performs narrower, traditional functions.

Accumulating function- implementation through a special economic mechanism of concentration of funds, creation of a material basis for the existence of the state and ensuring its functioning.

Regulating function acts in the form of stimulating the activities of economic entities, aimed at the development of scientific and technological progress and the solution of social problems.

distribution function is carried out by the formation and use of funds through the appropriate funds for special purposes: the state budget, the social insurance fund, enterprise funds, special funds. As a result, the restructuring of the national economy is being achieved, and various targeted programs are being implemented.

control function It is aimed at ensuring the correctness of the collection of taxes and their use for their intended purpose.

financial policy. Subjects of financial relations

In our economic literature, in a broad sense, it was customary to understand financial policy as the unity of the objective and the subjective. The objective side is that the policy is built in accordance with the requirements of economic laws. It follows that the success of the financial policy largely depends on the knowledge, identification of economic patterns. At the same time, politics is always subjective, as it is implemented by people, their will and efforts.

financial policy- this is a set of government measures to mobilize financial resources, their distribution and use on the basis of financial legislation. In this case, the objective moments are basic in the construction of financial legislation; subjective - these are the actions of people to mobilize financial resources, their distribution and use for the implementation of strategic goals, specialized programs and for the implementation of current economic activities.

In a crisis, financial policy, on the one hand, is aimed at stopping the decline in production, as well as at stimulating its development, at concentrating financial resources for their investment in priority sectors of the economy; on the other hand, to contain social programs, reduce defense spending, etc.

With the transition of the economy from a crisis to a state of sustainable development, the direction of financial policy changes. The determining condition is the achievement of sustainable general economic equilibrium development.

The subjects (carriers) of financial relations are states, enterprises, firms, institutions, organizations, sectors of the economy, regions of the country and individual citizens. The connections that arise between them regarding the formation and use of funds of funds, through the relevant institutions, act in the form of financial relations. These relations are formed in the form of groups of relations:

• between the state and local authorities;
• between the state and enterprises;
• between firms;
• between firms and banks;
• between the state and public organizations;
• between the state and the population.

financial relations cover the system of payments to the state budget and various funds of state organizations; mutual payment obligations, carried out on the basis of agreements between firms; relations between enterprises and banks regarding the receipt and use of loans; relations between the state and the population associated with the receipt of various types of transfer payments, with the sale of loans, with the organization of drawings for lottery tickets, etc.

State and consolidated budgets. Budget deficit and public debt. Fiscal federalism

The central link of the entire financial system is the state budget. With its help, the state distributes and redistributes the gross national product between territories, industries and sectors of the national economy.

In the process of using centralized funds, budgetary relations are formed. They represent financial relations that arise between the state, on the one hand, and enterprises, organizations and the population, on the other.

The redistribution of GNP with the help of the budget is carried out through special economic forms in the form of income and expenses.

Budget revenues are formed from sources that are divided into internal and external.

Domestic include income that is associated with domestic (national) production of goods and services. Income includes components such as:

• taxes (mandatory payments collected to the state or local budget from individuals and legal entities);
• fees (payments for the right to trade, for parking vehicles, resort fees, excise taxes, customs duties etc.).

External sources- this is income in the form of borrowed funds provided by other states or international organizations.

Budget Spending is carried out through the distribution and use of budgetary funds for the needs of the economy and for the performance of the functions of the state. Taking into account public needs budget resources can be allocated: for the needs of the national economy; for social and cultural events; on defense; for management.

Expenses are divided into expenses included in the current budget and the development budget. The current expenditure budget includes expenses for current needs. The development budget includes funds intended for investments related to the socio-economic development of territories, with innovative activities, with the implementation of major economic programs.

When expenses exceed income, there is budget deficit.

It must be borne in mind that if the deficit is temporary and does not exceed 10% of the amount of income, then it is considered quite acceptable. A deficit exceeding the level of 20% is critical.

Overcoming the budget deficit must first of all be based on the development of production, on achieving the financial stability of all industries and enterprises of various forms of ownership, on the activation of the economy.

Sequester. In order to ensure stability in the field of budgetary relations, the size of the budget deficit may be established. If, in the process of budget execution, the limit level of the deficit is exceeded, then a mechanism for sequestering expenditures is introduced, which consists in the proportional reduction of government spending on all items.

State debt- this is the sum of budget deficits accumulated in the country for a certain period of time, minus the positive balances available at the same time. Public debt can be internal and external.

domestic debt is the debt of the government to the population of its country. Domestic debt is in the form of government bonds.

External debt is the debt of the state to citizens and organizations of other countries.

The presence of a large public debt is accompanied by a breakdown in the functioning of the financial system, the emergence of non-payments, the emergence of uncertainty in business activity among entrepreneurs and individual citizens.

budget system- this is a set of budgets used in the country, based on certain principles and legal norms, taking into account the state structure.

The budgetary device of Russia includes in its composition:

• the federal (republican) budget, in which the budgetary resources necessary for the implementation of expenditures of a nationwide nature are concentrated;
• budgets of subjects of the Federation (regional budgets);
• local budgets (budgets of municipalities).

In general, in budget system Russia includes: the federal budget; republican budgets of the republics that are part of Russian Federation; regional and regional budgets; city ​​budgets of Moscow and St. Petersburg; budgets of districts, regional cities located on the territory of the region; budgets of settlements, district cities located on the territory of the district and other settlements. The entire budget system of Russia is built taking into account the principle of unity and the principle of independence.

The principle of unity means that all budgets are built according to uniform legal norms.

The principle of independence means that all levels of the budget system are provided with their own sources in the form of revenues and the right to use them for the needs of each of the subjects.

Consolidated budget- this is a set of budgets of lower territorial levels and the budget of the corresponding national-state or administrative-territorial entity, used for comparable calculations and analysis.

Extrabudgetary funds- this is a special form of using funds raised in addition to the budget to finance various tasks solved by the state. According to the intended purpose, extra-budgetary funds are divided into economic and social; according to the level of management – ​​federal, regional and local.

Among the main off-budget funds in Russia are:

• State Social Insurance Fund;
• Pension Fund;
• Compulsory Medical Insurance Fund, etc.

State Social Insurance Fund involves the creation of financial resources for the payment of benefits for temporary disability, pregnancy and childbirth, for burial, to finance sanatorium and resort services. This fund is created by the insurance method with the obligatory participation of enterprises and organizations.

Pension Fund is an organizational and financial structure that serves pensioners. He is engaged in targeted fundraising for the payment of pensions and child benefits. The income of the Pension Fund is formed at the expense of insurance premiums of enterprises and organizations; citizens involved in labor activity; as well as funds from the republican budget for the payment of state pensions and benefits to the military.

State Employment Fund necessary for material support of persons who have lost their jobs, as well as for their training in another specialty. The fund is formed at the expense of mandatory contributions from employers, mandatory insurance premiums from the earnings of employees within total amount taxes levied.

Compulsory Medical Insurance Fund designed to provide free medical care. In St. Petersburg, for example, health care institutions included in the system of providing compulsory medical services issue medical insurance policies to citizens, the owners of which receive the right to free medical care.

Fiscal federalism- this is a set of principles and mechanisms of budgetary and financial relations between different levels of government and management, involving the decentralization of the financial system and the expansion of the budgetary rights of the regions.

The main principles of fiscal federalism are:

• independence of budgets of various levels;
• legislative delineation of budgetary responsibility and authority to spend revenues between federal, regional and local governments;
• establishing legal methods regulation of interbudgetary relations and provision financial assistance subjects of the Federation;
• ensuring compliance (balance) between the functions of spending funds and revenues assigned to a given budget level.

The Russian system of fiscal federalism includes:

• a system of poles of budgetary flows: the federal budget, the budgets of 89 subjects of the Federation and local budgets;
• tax federalism, i.e., the division of taxes into federal, regional and local;
• creation of a block of financial transfers in the form of a federal fund for financial support of the constituent entities of the Federation;
• a block of subsidies and subventions to the subjects of the Federation.

Taxes and the tax system. Principles of taxation. Types of taxes. Laffer curve

taxes- these are mandatory payments levied by the state from legal entities and individuals on the basis of established legislation. Historically, they arose with the advent of the state in the form of "contributions from citizens" for the maintenance of public power.

In modern developed countries, taxes provide up to 90% of revenues to the state and approximately 70% to local budgets.

Tax policy is one of essential methods state regulatory impact on the country's economy.

Tax system is built on the basis of existing legislative acts of the country, which establish the main elements of the tax. These include:

Subjects of the tax system or taxpayers, i.e. individuals and legal entities who, in accordance with existing legislation, are required to pay taxes.

Objects of the tax system- income or property on which tax is charged in accordance with the law (salary, profit, real estate etc.).

Tax source is the company's net income.

tax rate is the percentage or share payable on income or property; the tax rate is the amount of tax per unit of taxation (per ruble of income, per ruble of property value, etc.).

Flat tax rates- this is a method according to which tax rates are set in absolute amount per unit of taxable products (a ton of oil, a cubic meter of gas, acres of land, etc.).

Depending on the tax rates, taxes are divided into progressive, proportional, regressive, degressive.

progressive taxation assumes that the tax rate increases with the growth of the amount of taxable income (the tax rate increases with the growth of income).

Proportional taxation means that the rate of taxation does not depend on the amount of taxable basic income (irrespective of the amount of income, a single tax rate applies).

Regressive taxation As income increases, the rate of taxation decreases.

Degressive taxation involves increasing the tax rate as basic income rises. At the same time, the increase in the rate of taxation decreases as the basic income grows, i.e., each subsequent increase in the rate of taxation is less than the previous one.

Tax functions. When choosing a taxation system, it is necessary to take into account the functions performed by taxes.

Essence fiscal function It comes down to creating centralized funds with the help of taxes and thereby ensuring the material conditions for the functioning of the state.

economic function involves the implementation of taxes active actions in the implementation of economic processes. Taxes involved in redistribution financial resources, have a stimulating effect on the rate of economic growth; strengthen or weaken the accumulation of capital; expand or narrow the effective demand of the population.

Principles of taxation. The taxation system should be based on certain principles. In this regard, the famous four fundamental principles of taxation, formulated by A. Smith, have not lost their relevance.

The principle of justice. All citizens of the state must share in the maintenance of the government according to the income they receive under the patronage and protection of the state.

The principle of certainty. The tax paid by each individual citizen of the country must be precisely determined in terms of amount, term and method of payment.

convenience principle. When levying a tax, it is necessary to establish the time and method of paying the tax from the point of view of the convenience of the payer. The principle of economy is to reduce the costs associated with the collection of tax.

The system of taxation should be built in such a way that as little money as possible is withdrawn from the pocket of the people in excess of what goes into the treasury of the state. If, for example, tax collection requires a large army of officials, then their wages can absorb a significant amount of tax revenue.

In addition, the taxation system should be understandable for the taxpayer, and the object of the tax should be protected from double, triple taxation, which is often observed at the present time.

The principles of a rational taxation system were formulated by the famous German economist H. Haller.

The principle of cheapness of taxation. Taxation should be structured in such a way that the government's costs of implementing it are as low as possible.

The principle of low cost of paying taxes. The system of taxation should be such that the costs to the taxpayer and the procedure for paying taxes are as low as possible.

The principle of limiting the burden of taxes. Taxation should be as subtle as possible for the taxpayer in order to provide the least possible negative impact on its economic activity.

To date, there have been two main taxation concepts.

The first concept is based on establishing the amount of taxes in proportion to the benefits that individuals and legal entities receive from the state. We are talking about financing the benefits that business entities use and benefit from them. For example, those who use bridges, roads, etc. must pay the costs associated with their maintenance and repair. The implementation of this concept is connected with the difficulties of determining personal benefits, obtaining income by each taxpayer at the expense of state spending on defense, health care, education, etc.

The second concept is based on the system of establishing the amount of taxes, which is built in direct proportion to the income received by individuals and legal entities.

This concept is more fair, rational and relatively simple.

Curve A. Laffer. When taxing a very important point is the establishment of optimal tax rates. It is well known that high taxes constrain the economic activity of economic entities, which leads to a reduction in production and income. Low taxes increase the incentives for producers and thus contribute to the expansion of production and increase incomes.

There are different approaches to using tax rates to influence economic processes. Some solve the problems that have arisen in the economy from the standpoint of demand ("demand economy"), others - from the standpoint of supply ("supply economy").

Representatives of the economy of demand, which include Keynesians, for example, propose to introduce higher taxes with an increase in inflation. Aggregate incomes and the purchasing power of society are reduced, which leads to a restriction in demand. As a result, prices fall and inflation dies down.

Proponents of supply-side economics, on the contrary, advise lowering taxes, which stimulates production, leads to an increase in supply and lower inflation. They believe that high taxes increase the costs of businesses, which are passed on to the consumer in the form of higher prices, thereby causing higher inflation.

The result is a dilemma: Demand-side economists believe that demand creates its own supply, while supply-side economists believe that supply creates its own demand. The solution to this dilemma does not have a clear answer.

At the same time, the American economist Arthur Laffer in the early 1980s. found that when the tax rate increases, government revenues first increase. But, if the tax rate exceeds a certain threshold, tax revenues will begin to decrease, as too high taxes reduce people's desire to work in the "bright" legal economy. The higher the tax rate, the lower the production volumes and the lower the state revenues. The graphically displayed relationship between tax rates and tax revenues is called the Laffer curve (Fig. 22.1).

The graphic representation of the curve indicates that at a zero tax rate there are no budget revenues, and at a 100% tax rate there are also no budget revenues. In the legal economy, in the absence of income, no one wants to work, the population and entrepreneurs go into the shadow economy. In other cases, producers will work and pay taxes that go to the budget.

The maximum amount of tax revenues to the budget is reached at point A at a tax rate rg = 50%. If the economy to the right of point A shifts to point B, then a decrease in the tax rate to rB in the short run will lead to a temporary reduction in tax revenues to the budget, and in the long run to their increase (increasing incentives to work will lead to the expansion of entrepreneurial activity). activities in the legal economy).

It should be borne in mind that in practice the ideas of A. Laffer are rather difficult to use, since the Laffer curve does not answer the question of what tax rate is the maximum. AT different countries different tax rates are used, the values ​​of which are determined by the tax policy of the state; the size and structure of the public sector; the state of the economic situation of the country, etc. It is believed that the highest rate of income taxation ranges from 50-70%.

Modern tax system includes two main types of taxes: direct and indirect taxes.

Direct taxes set directly on income or property. Direct taxes are divided into real and personal.

real taxes Individual property items are taxed: land, houses, industrial and commercial enterprises, money capital.

Personal taxes income of individual individuals or legal entities is taxed.

These taxes include income, property, inheritance and gift taxes.

Indirect taxes are collected from buyers through the prices set for goods and services. The owner of the goods or services in their sale receives income, which includes tax revenues. The latter are directly transferred to the state fund.

Target taxes. In addition to direct and indirect taxes, contributions related to social benefits have recently become widespread. These include: pension fund, medical insurance fund, employment fund, social insurance fund. By their nature, they are targeted taxes, as they have a specific purpose. The classification of the main types of taxes in the Russian Federation is presented in Table. 22.1.

Tax system. In the Russian Federation, depending on the body that levies the tax, there are federal, regional and local taxes (Table 22.2).

federal taxes collected by the central government on the basis of state legislation and sent to the state budget.

Regional taxes include regional user fees natural resources(payment for water, forest tax, etc.).

Local taxes are collected by local authorities in the respective territory and are transferred to local budgets.

The most important taxes are:

• Personal income tax- a direct progressive tax levied on the entire set of incomes of the population. Income tax is a regulatory tax. A significant part of it is usually credited to local budgets.
• Income tax for enterprises and organizations is a direct proportional tax. The rate of this tax is divided: 13% of the profits (revenues) of enterprises and organizations are credited to the federal budget, up to 22% - to regional budgets.
• Value Added Tax (VAT)- indirect, regressive tax, one of the regulatory ones. Its basic rate is 20%. In many cases, part of this tax is credited to the regional budgets. According to economists, VAT has a restraining effect on economic growth.

excises These are fees charged on the sale of special items. Their list is approved by a special law. Such goods usually include tobacco products, jewelry, petroleum products, etc. This tax is indirect, regressive, regulatory, and is established for goods with inelastic demand.

property taxes- These are taxes on personal property of citizens and property (funds) of enterprises. Its rate is 0.1% on the property of citizens and up to 2% on the property of legal entities. Property taxes, as a rule, are assigned to regional and local budgets. They are direct, proportional taxes.

In the economic life of each state, finance is a rather complex phenomenon. With their help, the state redistributes a significant part of the GDP, which is the main object of financial relations. In this regard, finance is usually considered as a system of relations that are formed in society in the process of distribution and redistribution of GDP.
The object of financial relations is the gross domestic product, i.e. the cost of goods and services produced by subjects of economic relations in the field of material and non-material production for a certain period of time.
The subjects of financial relations are:
state;
legal entities;
individuals.
Such subjects take part in financial relations: the state, the region, the business entity and the citizen. In this regard, there are:
public finance;
local finance,
finances of business entities;
personal finance;
National finances are centralized monetary funds that are formed with the aim of concentrating financial resources at the disposal of the state and directing them to finance national needs.
Local finances include local budgets and off-budget funds, which are formed in this territory.
The finances of business entities are the initial link in the financial system. They serve the sphere of material production, where GDP and national income are created. Sources of financial resources of the state are formed mainly by business entities.
Household finances include the funds of individuals. A citizen who receives income has at his disposal a certain amount of money, but they are not yet finances. This money will become finance when its owner creates an appropriate fund and invests it in securities, lends to an individual, etc.
The rights and obligations of the subjects of financial relations are established and regulated by the financial and legal norms of the state.

4. Cash funds - material carriers of financial relations
Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources.
All processes of economic life, where finances take part, have monetary expression. The economic life of the state constantly requires the creation of monetary funds to meet various needs. The size of these funds characterizes quantitatively and qualitatively the scale of activities and financial capabilities of the state, economic structure, citizen. These funds are material carriers of financial relations.
The need to form monetary funds for various purposes arises both for the state and for other subjects of distribution relations (enterprises, individuals). This necessity predetermines certain economic relations.
Providing with the help of finance the necessary conditions for the creation, distribution and use of the gross domestic product in the country is achieved precisely through the organization of various funds of financial resources at all stages of the activity of the state, business structures and every citizen. Funds of financial resources that serve economic processes differ in the method of creation, directions of use, the interests of economic entities and the ultimate goals of the corresponding type of activity.
Centralized monetary funds include: the state budget, local budgets, other budgetary and off-budget funds for social purposes, state property and personal insurance funds, state credit, as a specific link in public finance.
At the enterprise level, decentralized monetary funds are formed - depreciation funds, wage funds, special and others.
There are differences in the forms and methods of formation and use of monetary funds.
The formation of monetary funds of enterprises is carried out in a decentralized manner, that is, enterprises in the process of economic activity independently form and determine the size of monetary funds. At enterprises, funds are created to ensure expanded reproduction, to ensure measures for the economic and social development of the enterprise.
National finances are formed by transferring funds from enterprises, organizations, institutions and the public in the form of taxes, fees, mandatory payments and voluntary contributions. Centralized monetary funds are created in order to obtain certain financial resources to finance the functions of the state provided for by the Law "On the State Budget of Ukraine", as well as to finance state economic and social programs.

More on the topic 3. Objects and subjects of financial relations:

1. The structure of the economic system: subjects, objects, basic relations
2. 3.1. The essence of the relationship of ownership. Subjects and objects of property.

An organization (enterprise) (French organization, from Latin organiso - I give a slender appearance) is an independent business entity with the rights legal entity producing products, goods, providing services, performing work, engaged in various types economic activity, the purpose of which is to meet social needs, make profits and increase capital.

An organization (enterprise) can carry out any of the types entrepreneurial activity or all types at the same time.

In the process of entrepreneurial activity, organizations (enterprises) have certain economic relations with its counterparties: suppliers and buyers; partners in joint activities; unions and associations; financial and credit system, etc., accompanied by the movement of funds.

The material basis of finance is money. However necessary condition emergence of finance real movement funds: their accumulation, spending and use at all levels of management. It is due to mutual settlements between economic entities, with the budget and credit systems, in the process of which centralized and decentralized funds of funds are created and used.

AT foreign literature finance is considered as cash flows (processes associated with the movement of money).

In the works of domestic scientists, the essence of finance is usually expressed as a set of economic relations that arise during the formation, distribution and use of funds of funds. Recently, other definitions of the content of finance have appeared that are close to foreign ones. The ambiguous interpretation of the definition indicates the complexity and multilateral nature of finance. The object of finance is not only the processes arising from the movement of funds, but also the economic relations mediating them. The finances of organizations (enterprises) are a set of monetary relations that mediate economic relations related to the organization of production and the sale of products, the performance of work, the provision of services, the formation of financial resources, and the implementation of investment activities.

How economic category finance of organizations (enterprises) is a system of financial or monetary relations that arise in the process of forming the main and working capital, cash funds of the organization (enterprise) and their use. They are distributive and redistributive in nature and have a direct impact on the reproductive process.

The finances of organizations (enterprises) are an independent element of the financial system serving material production and services. It is in this link of the financial system that a significant part of the national income of the country is formed, they are distributed within organizations and partially redistributed through the budget system and the system of extra-budgetary funds.

The sphere of financial relations of organizations (enterprises) is diverse and has significantly expanded and changed with the development of real market relations, the introduction of the Civil Code of the Russian Federation. Depending on the economic content, the financial relations of organizations (enterprises) can be grouped into the following areas:
arising between the founders at the time of the creation of the organization (enterprise) in the formation of the authorized (reserve, share) capital. In turn, the authorized (share, share) capital serves as the initial source of the formation of production assets, the acquisition of intangible assets;
between individual organizations (enterprises) associated with the production and sale of products, the emergence of newly created value. These include financial relations between the supplier and the buyer of raw materials, materials, finished products etc., relations with construction organizations during the period of investment activity, with transport organizations during the transportation of goods, with communications enterprises, customs, foreign firms, etc. These relations are the main ones in economic activity, since the gross domestic product and national income are created in the sphere of material production. They account for the largest volume of payments, from their effective organization largely depends on the financial result of enterprises; between organizations (enterprises) and their divisions - branches, workshops, departments, teams - in the process of financing costs, distribution and redistribution of profits, working capital. This group of relations influences the organization and rhythm of production;
between organizations (enterprises) and their employees in the distribution and use of income, the issuance and placement of shares and bonds of the enterprise, the payment of interest on bonds and dividends on shares, the recovery of fines and compensation for the damage caused material damage, withholding taxes from individuals. Their organization affects the efficiency of use labor resources;
between organizations (enterprises) and higher organizations, within financial and industrial groups, within the holding, with unions and associations, of which the organization (enterprise) is a member. These relations arise during the formation, distribution and use of centralized trust funds and reserves for financing targeted industry programs, conducting marketing research, research works, organization of exhibitions, provision of financial assistance on a reimbursable basis for the implementation of investment projects and replenishment of working capital, in case of reorganization. This group of relations, as a rule, is associated with the intra-industry redistribution of funds and is aimed at supporting and developing organizations (enterprises);
between organizations (enterprises) and the financial system of the state when paying taxes and other obligatory payments to budgets different levels, the formation of off-budget funds, the provision of tax benefits, the application of penalties, the receipt of appropriations from the budget.

The organization of this group of relations depends financial condition organizations (enterprises) and the formation of a revenue base for budgets of different levels:
between organizations (enterprises) and the banking system in the process of storing money in commercial banks, organization of non-cash payments, obtaining and repaying loans, paying interest on a loan, buying and selling foreign currency, and providing other banking services.

The financial condition of enterprises also depends on the organization of these relations:
between organizations (enterprises) and insurance companies and organizations arising from the insurance of property, certain categories of employees, commercial and entrepreneurial risks;
between organizations (enterprises) and investment institutions in the course of investment placement, privatization and other business entities.

Each of these groups has its own characteristics and scope, methods of implementation. However, all of them are bilateral in nature and their material basis is the movement of funds, thanks to their use, cash flows are formed, they are accompanied by the formation authorized capital organizations (enterprises), the circulation of funds begins and ends, the formation and use of monetary funds for various purposes, financial reserves and, in general, the financial resources of the organization.

Functions of finance. The essence of finance is most fully manifested in their functions.

There is no consensus among economists about the functions of finance organizations (enterprises). In the economic literature, there is currently a wide variation in the definition of functions, both in terms of their number and content. Unity is noted only in two functions: distributive and control. Many literary sources indicate the following functions: the formation of capital, income and cash funds; use of income and funds, resource-saving, control, etc. Obviously, the listed functions in their content have the same nature and purpose - providing the necessary sources of financing for the activities of the organization (enterprise). Most economists recognize that enterprise finance performs three main functions: the formation of capital and income of the organization (enterprise); distribution and use of income; control.

All functions closely interact with each other.

When finance performs the function of capital formation, the initial capital of the organization (enterprise) is formed, its increment; raising funds from various sources in order to form the volume of financial resources necessary for entrepreneurial activity, accompanied by cash flow. In modern conditions, not all funds of the enterprise are stock in nature. The enterprise independently decides the issue of formation of cash funds and reserves.

The distribution and use of income at the level of organizations (enterprises) is manifested in the distribution of proceeds from the sale of products and income from other activities in value terms by areas of use, determining the main cost proportions in the process of distributing income and financial resources, ensuring an optimal combination of interests of individual producers, enterprises and organizations and the state as a whole.

The objective basis of the control function is the cost accounting for the production and sale of products, the performance of work, the provision of services, the formation of income and cash funds of the enterprise and their use. With the help of this function, control is exercised over the timely receipt of proceeds from the sale of products and the provision of services, the formation and intended use of monetary funds and, in general, the financial resources of the organization, changes financial indicators, compliance with tax laws, etc.

At the heart of finance are distributive relations that provide sources of financing for the reproduction process and thereby link together all phases of the reproduction process: production, exchange and consumption. However, the amount of income received by an organization (enterprise) determines the possibilities for its further development. Efficient and rational management of the economy predetermines the possibilities for its further development. And vice versa, disruption of the uninterrupted circulation of funds, the growth of costs for the production and sale of products, the performance of work, the provision of services reduce the income of the organization (enterprise) and, accordingly, the possibility of its further development, competitiveness and financial stability. In this case, the control function of finance testifies to the insufficient impact of distribution relations on production efficiency, to shortcomings in management. financial resources, organization of production. Ignoring such evidence can lead to the bankruptcy of the enterprise.

The implementation of the control function is carried out with the help of financial performance indicators of enterprises, their assessment and the development of necessary measures to improve the efficiency of distribution relations. The control function is carried out both directly in the organization and by its owners, contractors, credit and government agencies.