PLAN
Introduction
SECTION I. Financial strategy ofenterprise
1.1 Features of Financial Planning in June
1.2 Summary and objectives of the financial plan inAugust
1.3 Operational Financial Planning
CHAPTER II. Summary of financialplanning and order of assembly
2.1 Of the Financial Planning business in Ukraine
2.2 Financial management strategy
2.3 Role of financial management of enterprises
CHAPTER III. Means of improving financialplanning
3.1 Improving financial planning in modern businessenvironment
3.2 Ways to improve internal financial control Enterprise
Conclusions
INTRODUCTION
Given the economictransition of Ukraine to the market, significantly expanding the rights ofenterprises in financial and economic activity increases significantly the roleof timely and qualitative analysis of the financial status of enterprises,assess their liquidity, solvency and financial stability and finding ways toimprove and strengthen financial stability.
Urgency of the theme. Thefinancial condition of the enterprise depends on the results of itsmanufacturing, commercial and financial activity. First the financial status ofenterprises positively affect the smooth production and sale of high qualityproducts. In general, the higher values ofthe production and sale of products and services and lower their cost, thehigher profitability of the company, which will positively affect its financialcondition. Nerytmichnist manufacturing processes, product qualitydeterioration, difficulty with its implementation result in the decrease offunds to the enterprise, resulting in worsening its solvency. There is afeedback, because of lack of funds could lead to disruptions in the provisionof material resources, hence the manufacturing process. Financial activityshould be aimed at ensuring regular revenue and effective use of financialresources, compliance and settlement of credit discipline, and achievement ofrational ratio of own and borrowed funds, financial stability for the effectivefunctioning of the enterprise.
The financial condition ofthe enterprise — is essential characteristic of business in a certain periodEID ¬ gives it real and potential Mozh ¬ ity companies to ensure adequatefunding levels ¬ owl financial and economic activities and the ability toeffectively implement it in future. To determine the financial condition ¬tributed using a number of analytical indicators: liquidity, solvency, economicstatus, profitability, etc..
In summary financialplanning is the forecast of the future, building a model of active, desired andplanned future financial situation of the enterprise with simultaneousconstruction of roads, installation tools and timing to achieve this state, andend boundaries of the planned actions. Financial plans are almost alwaysfocused on clearly defined goals include intermediate results and reflect thekinds and amounts of financial resources spent to achieve the plannedobjectives.
Thus, financial condition- is one of the most important characteristics of each enterprise.
The purpose of course workis to investigate the financial condition of the enterprise planning, seekingreserves increase profitability and strengthen the commercial calculation asthe basis for stable operation of the company and implementing its obligationsto the budget, the Bank and other institutions.
The main objectives offinancial planning are:
— The study ofprofitability and financial sustainability of the enterprise
— Study the effectivenessof using property (equity) company, providing working capital of their own;
— The status of the entityin the financial market and quantitative assessment of its competitiveness;
— Determining theeffectiveness of using financial resources.
Financial condition to besystematic and comprehensive estimate using different methods and techniques ofanalysis. This will allow critical evaluation of financial performance ofenterprises both in statics for a certain period, and in the end — for a numberof periods will help identify «pain points» in financial activitiesand how to effectively use financial resources, their efficient allocation.Inefficient use of financial resources results in low solvency and,consequently, to possible disruptions in supply, production and sale ofproducts to non plan profit decline Profitability to the threat of economicsanctions.
Object of study — financial planning for businesses
The subject of research ofcourse work is the financial planning business and ways to improve itsperformance.
Concludingthe consideration of the nature of the financial state of enterprises planningto note that the necessity and importance of planning due to the need ofsystematic analysis and improvement of market relations in transition toself-support, self-financing, the need to improve the use of financialresources, and finding reserves of financial stability the company.
SECTION I. Financialstrategy of enterprise
1.1 Features ofFinancial Planning in June
In modernconditions of market relations in Ukraine's economy planning all economicactivities of enterprises is an important prerequisite of free enterprise, aneffective market distribution and consumption.
In amarket economy in which each producer and entrepreneur focused on satisfyingtheir needs for goods and earn the most profit, the new feature shall inter orcompany planning activities at all of any legal form. In economic terms, theessence of planning is to develop plans for economic activity, expressed acertain list of economic indicators. In a market each enterprise (organization)shall independently establish a list of such indicators, based on their goalsand needs of the enterprise (organization). Economic planning is partof the management.
Planning — is one of themost complex and difficult types of brain activity specific to humans. Thedifficulty is that the administration — a practical activity, and how and whatto do, to be determined when to act. [18, sec. 7]
The basis of financial planningis the financial strategy of the enterprise. Financial strategy — part of theoverall economic development strategy, which includes a system of long-termfinancial objectives of the enterprise and how to achieve them. Developfinancial strategy of the enterprise associated with the solution of thefollowing main tasks:
• justification of themain sources of financial support of the company;
• selection of the bestways of investment company;
• minimize the financialrisks of the enterprise;
• ensuring financialstability and profitability;
• identifying ways to exitthe enterprise with the financial crisis and management practices under thecritical situation of the enterprise.
The financial strategy isthe basis for the development of financial policies. The financial policy ofthe company — a form of financial strategy for some aspects of its financialactivities ¬ ties. Financial policy is developed in some directions financingactivities: policy of asset and capital structure, asset management policy andinvestment policy to attract financial resources (of own financial resourcesand involvement from outside sources). In turn, the policies of their financialmeans may include separate units:
• pricing — pricingsubject to demand and supply (the dynamics of market conditions) and the costof manufacturing and selling products;
• depreciation policy — management-counting of depreciation for investment in their enterprisedevelopment;
• dividend policy — optimization between the share of income that goes to dividends, and that partof the profit ¬ tion that capitalized;
• investment policy — thechoice and implementation of the most profitable projects, expansion andrenovations to further economic development enterprise. [13, sec. 328 — 329]
Using finance enablesbusinesses sphere of material production process to ensure continuity of play,the resolution of industrial, economic and social head ¬ tribute, the formationof centralized and decentralized funds ¬ shovyh public funds at both the stateand business entities.
Having financial relationsin enterprises in the process of their creation, their implementation ofindustrial-financial activity, ¬ work of distribution of income and savings,the establishment of adequate funds.
Thus, finance is a systemof monetary relations that arise in the process of obtaining irozpodiyiuincomes and ¬ kopychen, formation and use of appropriate funds of funds. [22,sec. 7]
The aim is to providefinancial planning business activities necessary funding sources.
Financial Planning (exceptthe already mentioned methods of calculation ¬ Kiv) requires extensive use ofeconomic-mathematical simulation of ¬. This method enables the discovery ofexpression quantitative relationships between financial indicators and factorsthat determine it. [21, sec. 219]
Financial planning is oneof the most significant and important tool of financial management of modernenterprise.
1.2 Summary and objectives offinancial plan
financial planningbusiness
The key point in thefinancial planning business is a financial plan, which in monetary termscharacterizes all sides of production and economic activity, and summarizes themajor provisions contained in other sections of the plan of economic and socialdevelopment plans.
In developing thefinancial plan of the condition of cash flow and real them, the financialstability of the enterprise and use of inputs.
For the financial plan ofthe project output should scrutinize incoming and outgoing cash flows.Systematic Cash receipts from sales and other business enterprises are incomingflow, payments, employees, suppliers, subcontractors and others — closed.
The positive flow of fundsmeans that the enterprise at this point of time feels excess of receipts overpayments, negative — the opposite situation. [21, sec. 290]
According to a marketeconomy to solve industrial and commercial jobs that require investment, it isnecessary to develop intracompany document — business plan.
The business plan should:
— Give concrete ideas onhow to operate an enterprise that it will take place in the market;
— Contain all thecharacteristics of future manufacturing enterprises, describe in detail thescheme of its operation;
— To reveal the principlesand methods of leadership now
— Must contain a financialmanagement program that you can not start without any task and ensure theeffectiveness of its implementation;
— To show the prospects ofcompanies investors and creditors. [21, sec. 292]
Financial plan — a majorelement of the business plan, which includes a rationale for specificinvestment projects and to manage ongoing strategic and financial activities.This section of the business plan includes the following components:
— Forecast of sales;
— Balance of receipts andexpenditures;
— A table of revenues andexpenses;
— A forecast balance sheetassets and liabilities of the company;
— Calculation ofbreak-even point.
All articles of thefinancial plan of the enterprise are based on indicators of production plan(production volume, cost estimates for production, investments, etc.). Thus,the production plan plays a major role in financial planning. The process ofstreamlining the financial plan is not arithmetic recalculation of plannedproduction figures in finance. These two types of planning are interdependentand influence each other.
All articles of thefinancial plan of the enterprise are based on indicators of production plan(production volume, cost estimates for production, investments, etc.). Thus,the production plan plays a major role in financial planning. The process ofstreamlining the financial plan is not arithmetic recalculation of plannedproduction figures in finance. These two types of planning are interdependentand influence each other. [9, sec. 78]
Activities related to theformulation of each financial plan provides for certain kinds of work usingappropriate methods (see Table 1.1.).
The basis of promisingfinancial planning is forecasting which embodies the strategy on the market.Financial forecasting is to explore possible financial position on a prospect.Unlike planning, forecasting involves the development of alternative financialindicators and parameters, which use according to the trends of the marketmakes it possible to identify a version of the financial condition of thecompany.
The result of thelong-term financial planning is the development of three key documents:
1) weather report onrevenues and expenditures;
2) Cash Flow;
3) forecast the balance ofassets and liabilities of the company.
In addition, the financialplan provides justification of investment in the firm and sources of theirreceipt (the attraction of loans, financial leasing, equity or share capital,etc.), income statement and its use, report on financial and propertyperformance for the last reporting year.
By making a financial planshould take into account that the amount of expenses and deductions should bethe amount of income and cash flows. Did ¬ however given that one type ofsources (profit) may in ¬ kryvatysya several types of expenses before makingthe financial plan should vzayemou zhodzhu making (balance) pi costs Lama ¬sources to cover them.
1.3 Operational Financial Planning
In raising the efficiencyof production plays an important role of operative management. However, theefficiency of production processes nychymy ¬ regulation of payments toemployees of the enterprise, customers and suppliers, all levels of financialand credit system (budget, centralized off-budget funds, institutions, banks,etc.)… ensure solvency ¬ Nosta enterprise largely depends on the organizationof operational financial planning, which includes drafting primarily ¬ changepayment calendar.
Payment calendar — adocument that appear in ¬ accurate receipts on a certain period.
Purpose of paymentcalendar is to fix the current expenses and cash flows, sequence and durationof the now all calculations for a certain period. This calendar allowsfinancial services companies in ¬ bezpechuvaty timely execution and settlementof payment obligations ¬ bearing, set changes and the level of solvency,finance ¬ tion of normal economic activity in the correspond ¬ down period.[22, sec. 272]
Financial planning helpsto reveal internal reserves for the needs of enterprises for bezpechuyetsyafollows:
— First, it turns out herneed for the most efficient use of production facilities ¬ formalities, qualityimprovement:
— Secondly, theimplementation plans Ji profit and volume of other financial resources (egamortyzatsiyina complete reproduction of fixed assets);
— Third, financialresources, which is determined in the planning, do not allow the company makesor create excessive stocks of material resources, to make unplanned capitalinvestment.
The main tool forfinancial planning in a modern enterprise is a financial plan ¬ prises (balanceincome and expenditure), widely used in practice with such tools as financialplanning, as a payment calendar, a business plan.
Payment calendar consistsof two sections.
The first section includesall types of expenditure (payments) for enterprises ¬ prises planning period:the salaries and ¬ pryrivnya them to her charges, taxes and charges paid to thebudget and extra budgetary funds to pay suppliers accounts for inventory valuesandservices provided, work performed on capital construction and major repairs;
The second sectiondisplays balances of accounts in banks and companies on hand and expected cashflows from various sources: the proceeds from the sale of fixed assets andinventory, receipt of redemption ¬ tion of receivables from centralizedsources. [22, sec. 274]
The main tasks ofoperating a financial planning business are:
— Providing production andinvestment necessary financial resources;
— Making rationalfinancial relationships with business entities, banks, insurance companies,etc.;
— Identification and mobilization of reserves, increasing profits by efficientuse of ma ¬ ation of material, labor and financial resources:
— Overseeing the creation and use of payment instruments.
Thecompany should be set povsyakden nyy ¬ operational control over payments and revenuesma ¬ ation of material values, the implementation of financial obligations tothe budget, and banks. [16, c. 309]
Operationalfinancial planning is very necessary undertaking to control the actual receiptof funds on current account expenditure of funds in the process of economicactivity and performance of the current financial plan. This is because the financial ¬ chennya provide operatingand investing at the expense of their own and borrowed funds and need dailyeffective control over formation and use of financial resources
CHAPTER II. MAINTENANCEPLANNING AND ORDER OF THE ASSEMBLY
2.1 Of the FinancialPlanning in the Ukraine
Currenteconomic conditions under which enterprises find themselves alone with theuncertain external environment, the unpredictable behavior of other marketactors, encouraged them to implement and maximize forecasting and financialplanning, further improving the methodology and technique development asforecasts and plans.
Resort to financialplanning as a process of future financial needs of the enterprise, and todetermine how the funding was conducted in the past period and that the moneyspent. With the help of financial planning and control of enterprise managerscan assess the extent consistent with its objectives of applied methods offinancial calculations. Substantiating the necessity and importance offinancial planning, it should be noted that in the context of financialstability financial planning vidvodytysya has a special role because it isconnected with the resource factor — formation, placement and use of financialresources and profit on invested capital in economic activity. [16, c. 69-71]
It is inthe process of financial planning needs of the enterprise economically groundedin equity to enforce the business plan projected volume of economic activities,which trail linked to a real and existing sources of funding to attract andcreate financial stability conditions of the enterprise. Implementingthe financial planning process, keep in mind that its purpose should bepractical feasibility capital requirements for amounts of projected operatingand investing, mutual deviations of the prison with the real needs to attractcapital, resource access cycle on the basis of production assets financialstability, solvency, creation of preconditions for net income in an amountsufficient to economic and social development.
To achieve this goal, companiesmust:
• determine the amountneeded and the possible financial resources by source of their directions anduse for operating, investing and other activities;
•optimize the capital structure of the sources and areas of accommodation;
• identify predictors ofreturn to capital, advanced to the formation of a business;
• develop alternative orpreventive measures in case of deviations from predicted values;
• monitor and respond tothe implementation of financial plan. [12, c. 89]
To finance investments incompanies to attract long-term capital through the stock market. You can alsoresort to issuing new shares. Also involved and loan capital through bonds.
In worldpractice, made the specific innovation strategy, the main ones are «borrowing»and «capacity». [4, c. 121]
The strategy of«borrowing» is that by attracting cheap labor and use of privatescientific and technological capabilities, master the production company, whichpreviously produced in developed countries, underdeveloped countries with thefollowing build-up. More umozhlyvlyuyetsya perform their own research anddoslidnokonstruktorskyh work (R & D).
The strategy of«growth» is that using their own scientific and technologicalcapacity, participation of foreign scientists and designers integrate basic andapplied science is constantly creating new products, high technology, realizedin the production and social sphere, that grows up innovation. This strategy is actively used in the U.S., Britain,France and Germany. [11, sec. 73 — 77]
One way of improvingfinancial stability is to improve the forms and methods of enterprise financialmanagement and in particular forms and methods of financial planning, so youcan anticipate the potential financial risks and ensure this by improving theefficiency of financial and business enterprises. [11, c. 73]
Theprocess of financial planning at the enterprises of mechanical engineeringdepends heavily on the technological, organizational and economic features ofthis industry which is highly depreciated assets, lack of investments in fixedassets and their use of ineffective, low investment attractiveness, lowinnovation potential of enterprises.
First, the planningprocess takes place in changing economic environment, so in a crisis to createfinancial plans, based on figures of previous periods, is illogical and wrong.Furthermore, traditional methods of budgeting (operational establishment offinancial plans) has significant shortcomings:
• the basis of all budgetstake resources, budgets are not focused on output and customer needs;
• budgets to put most ofpast periods, and planned and projected figures calculated using linearcorrelation;
•budgeting shows no evidence of non-capacity, lack of, equipment failures, theircauses and sources, does not regulate the workload of equipment;
• budgets do not includethe ratio of costs and benefits obtained at different levels of production. [2,c. 86]
Thus, it should be notedthat to ensure the financial stability of enterprises should pay more attentionto financial planning in order to enforce the business plan projected range ofoperational and investment activities and taking into account scientific andtechnical potential of component companies have long-term development optionsfor companies.
2.2 Financial management strategy
In a market economy,enterprise autonomy, responsibility for their performance objective necessityarises trending financial position, orientation in the financial situation andprospects, assessing the financial status of other entities. Address theseissues helps financial strategy of the enterprise.
Formation of the financialstrategy is quite difficult and laborious process, and requires significanttime, labor and performance of complex calculations. Important to this processis the consideration of the following factors:
• orientation of thefinancial strategy for the total development strategy for the market;
• thelevel of legislative and legal regulation of business;
• economic and politicalsituation in the country;
• The type of marketposition of the company, the choice of financial strategy depends on themarketing policies of the entity, including whether the target audience forwhich production is directed by market share and type (domestic orinternational) plans to take the company;
•resource support for companies, since the financial strategy of the quantityand quality of resources, including the number and qualification of workers,the availability of essential drugs, availability of internal funds, thepossibility of borrowing and investments, innovative capacity [5, c. 123];
• financial position andcompetitive advantages of existing and potential business competitors,reliability of suppliers and buyers;
• the risk of financialactivities that caused inflation fluctuations, abrupt exchange rate, risk ofnonpayment, the probability of occurrence of financial crisis and more. [14, c.131]
The main purpose of thefinancial strategy of the enterprise is to maximize its market value andimprove business performance. It is reached by concrete goals and objectives,taking into account the peculiarities of the financial future of the enterprise.The system of strategic financial goals toensure formation of sufficient own financial resources and high return ofequity capital, optimizing the structure of assets and working capital,establishing an acceptable level of financial risk in the process of productionand economic activities in the long run.
Formation of the financialstrategy includes a sequence of certain stages. First, it is not possiblewithout gathering information about the market environment for enterprises(competitors, suppliers, customers, intermediaries, government agencies andservices, banks) and its detailed analysis. Atthis stage, financial managers should apply the financial instrument: themicroeconomic financial planning, forecasting, strategic and financial analysis(including SWOT analysis, which includes analysis of strengths and weaknessesof the company, risks, and additional features), statistical methods andeconomic-mathematical modeling. After performing the analytical work ofrelevant calculations, discussion of alternative scenarios adoptedadministrative decision on the choice of financial strategy, which furtherdetail in the areas of financial policy and implemented according to plan. [4,c. 92 — 94]
If in the formation andimplementation of financial strategies revealed certain deviations of actualvalues of the planned and prescribed conditions of the enterprise, there is anadjustment strategy on the stage at which detected this deviation.
Tofacilitate the implementation of financial strategies appropriate to conductits BIR detail by building tactical plans. Tactical planning isintended to form the mechanisms for implementing the chosen strategy. It comesin two varieties: Early and current. Current planning — a type ofadministration, aimed at developing options, activities, budgets andadministatyvno-financial factors of the current plans to form a functioningspecific areas of the enterprise or its activities in the whole year in termsof the objectives of the chosen financial strategy. Operational planning isaimed at forming narrow, detailed, short-term plans with specific issues ofbusiness, which are formed by detailing the current plans. Operating currentplans and shall not deviate from the financial strategy of the enterprise, butrather to specify and complement it.
Thefinancial strategy should be a component of the overall enterprise strategy, inorder to conform to it and challenge. At the same goal andobjectives are determined by its financial nature, the economic relationsbetween market participants about the formation and use of financial resources.A characteristic feature of the financial strategy supports its relationshipwith the general finance at the macro and micro level.
Financial strategy, in ouropinion, considered as:
— Component of the overallstrategy — one of the functional strategy, which aims to capture the financialposition in the market;
— Basicstrategy, which provides (through financial instruments and methods offinancial management, etc.) the realization of any basic strategy, its purpose- efficient use of financial resources and management. [11,c. 47]
To ensure sustainabledevelopment on the market should clearly articulate the financial strategydotrymuvyuchys main strategic goal, namely:
1. of financial resourcesand centralized strategic guidance to them;
2. identify critical areasand focus on their performance, agility in the use of financial reservesmanagement company;
3. objective account of financial and economic situation and the realfinancial condition of the company for a year, quarter, month;
4. account of economic andfinancial capabilities of the enterprise and its competitors;
5. identify the mainthreats from competitors, the mobilization of its forces in the removal andskillful choice of areas of financial action;
6. maneuver and fight forthe initiative to achieve decisive advantages over the competition. [15, c.129]
Thefinancial strategy includes methods and practices of financial resources, theirplanning and ensure stability and financial stability of enterprises in marketcompetition operating conditions. According to financialstrategy is determined by the financial policies of the company — as a form of overalleconomic strategy of the enterprise on separate pages of its financialactivities. Forming a financial policy, taking into account that the financialtrends of business — to achieve its main strategic goal of — need bettermanagement. [20, p… 94]
The financial strategy isthe steering vector management, and without its proper formation is practicallyimpossible to miss the financial problems during the production and economicactivity in today's competitive market environment.
2.3 Role of financial management inthe enterprise
The roleof financial management in the enterprise is to scientific principles, meansand forms of monetary relations companies, aimed at managing its financial andeconomic activities, which includes:
1. development andimplementation of the financial system;
2. informational support(preparation and analysis of audit);
3. evaluation ofinvestment projects and the portfolio investment;
4. Current financialplanning and control. [8. 264]
Thefinancial condition of the enterprise is the foundation of its prosperity,because the main purpose of financial management is finding a reasonablecompromise between tasks, which puts the enterprise and financial capabilitiesto implement these tasks:
— Increase sales andprofits
— Maintaining sustainableprofitability of the enterprise;
— Increase income owners(shareholders);
— Increasing market valueof its shares and others.
These objectives addressedby rational management of financial flows between the company and its fundingsources (both internal and external) obtained:
— Due to financial andeconomic activities;
— Thefinancial market from the sale of stocks, bonds, borrowing;
— Return of financialmarket interest and dividends as payment for capital;
— Payment of tax payments;
— Investment andreinvestment in the development of enterprise. [8. 269]
Experience shows that nostrategic or even tactical decisions and managers will not be met unless it isbacked by movement of financial resources. So, how much a managerial decisionsrelated to available financial capacity, depend on the viability and long-termbusiness. Common to all solutions is a basicprinciple of «economic compromise, whereby each time a decision themanager must weigh the benefits that are, and actual costs. Periodically,the cumulative effect of these compromises can be seen when work or financialvalue of the business are assessed or due to the financial statements, or usinga special analysis.
Decisions are made bymanagers affect the movement of controlling resources. These movements aredescribed by the term „equity flows» (funds flows), which means theresources invested businesses in the form of cash, accounts receivable,inventory, equipment, or business received in the form of loans, bonds orequity. E. Helfert substantiates the relationship equity flows in the business.[8. 282 — 284]
The system consists ofthree segments that correspond to the three main branches of decision making. The top segment shows the three components ofinvestment: already existing investment base, additions as new deposits andwithdrawal of deposits that are unnecessary.
The central segment showsthe interaction in the process of the three main elements: prices, sales andcost of production. Lower segment provides double the financing business, firstpart reflects the disposal of profits from production activities, the second — the possible source of funding long-term capital. It shows the ownership ofshareholders, which increased the amount of retained earnings and long-termloans from the side. Decisions related to retained earnings and long-termcapital, affect the stock of potential, supporting amendments to the investmentbase.
E. Theproposed concept Helfertom base system displays multiple dynamic businessrelationships between the key management decisions, strategies, types offinancial policies and movement of funds.
Orderliness between thesevariables is an important aspect Dovhove success. Financial management has manytechniques for solving complex business problems. [10, sec. 67]
CHAPTER III. Means of improving financial planning
3.1 Improvingfinancial planning in modern business environment
The mainproblem for any business — cost saving. The main ways to reducecosts is to save all kinds of resources consumed in production: labor andmaterial. Thus, a significant portion in thestructure of production costs is wages. Therefore the task of saving labormanufactured products, increase productivity, reduce headcount.
Reducedcomplexity of products, increase labor productivity can be achieved indifferent ways. The most important of them — themechanization and automation of production, development and application ofadvanced, high technology, modernization and replacement of obsolete equipment.
As sources of funds forimprovement finasovoho planning, then these include:
1. The implementation ofproducts with immediate payment or a discount.
2. Getting receivables.
3. Sale of reserve cashassets.
4. Sale of tangible and intangible assets (excess inventory).
5. Obtaining bank loans.
6. Attracting investments,private equity and other contributions to the statutory fund. [20, p… 102]
The first four ways moreappropriate because it does not lead to an increase in the balance sheet. Inthese cases, funds are created through restructuring of assets. The last twocan be used to support the current solvency in extreme cases, because they leadto the diversion of borrowed funds from the targeted use.
But on current liquidity,then this ratio is within normal limits. The company has a problem with cash.Therefore we must pay attention to sales for cash. This should facilitate themarketing policy (search for new, better-paying customers, new markets,expanding distribution network, improving product quality).
To replenish the equitymust, first of all, assess the value of his involvement with various sources.Before you turn to outside sources of equity to be realized the possibility ofits formation from domestic sources. A major internal source — earnings anddepreciation.
So, to improve businessproduction activities must be made as follows:
1. Accelerate the turnoverof working capital through the intensification of supply;
2. Reducing processingcosts through modernization of production equipment and new technologies. [20,p… 108]
There should be a flexiblesystem of discounts and credits to wholesalers, to study the effectiveness ofthe organization and conduct seasonal sell-off in price.
All these measures willenhance the institution proceeds and profits to a desired size, which mayincrease the return on capital.
But if the amount ofequity capital from domestic sources is insufficient, we must turn to externalsources of attraction. This requires the need for emission of the business. The main purpose of this policy is to engage in stockmarket necessary amount of own funds in minimum possible time. [16, sec.183]
Along with the equity ofthe company a measure of financial resources creates by borrowed capital. Forspecific gravity within the involved funding A major bank loans and accountspayable, including commercial and commercial loans. The need for credit as asource of replenishment of financial resources is determined by the naturecycle of fixed and current assets. But as a source of financing, loan capitalalso has its own characteristics:
1. The relative simplicityof baseline estimates. The cost of servicing debt in the form of interest on theloan;
2. Payments for debtservice related to costs, which reduces the size of the taxable base ofenterprise, that size cost of debt capital decreases by corporate tax rate;
3. The cost of debtcapital to attract a high degree of communication with the level ofcreditworthiness of the enterprise, estimated to creditor. What pronouncementsolvency of the enterprise to assess the lender, the lower cost of debt capitalraised;
4. Involvement of debtcapital due to the return cash flow to service debt and the repaymentobligations on the principal amount of debt.
Internal cost payable indetermining the cost of capital accounted for zero rate because it is free ofcharge at the expense of financing this debt capital. But we can not increase the amount of capital due to this source,because if the funds are delayed for a long time in circulation and are notreturned promptly, it may cause debt-laden, in the end lead to the payment offines, sanctions and worse financial condition.
For debt capital, incompany with the existing structure of the low and return on assets compared tointerest rates on loans are very slight possibility of his involvement. We mustfirst solve the problem of Supply and improve solvency of the enterprise.
Optimizing the financialstructure of capital is one of the most important and difficult tasks offinancial management. Optimal capital structure — it is the ratio of its ownand borrowed sources, at which the optimal ratio between the level of return onequity and financial stability, ie maximizing the market value of the company.[16, sec. 201]
Thus, as a result of theoptions considered can be said that the policy of optimizing capital structureaimed at increasing the share of equity. Namely profit, due to the inability toattract loans. But if the goal to improve return on equity, then theoreticallythe best option — involving loans. But there are limitations on the solvencyratio, which is not to increase the loan capital without increasing assets.Increasing the share of current assets to increase the loan capital and reducetheir own and maintain solvency. Return on equity by more than the sum of itslower and higher income, and the replacement of the equity loan it raises.
3.2 Ways to improve internalfinancial control of the state enterprises
Financial control — acontrolling system which provides the concentration of control actions for themain areas of financial activity, detecting deviations from actual valuespredicted (planned) and the factors that caused these deviations, andmanagement decision-making process of the normalization of the financialmanagement of the enterprise.
Building a system offinancial control is based on the following basic principles:
1) orientation offinancial controlling at achieving the financial strategy of the company;
2) multi-financialcontrolling;
3) financial controllingorientation on quantitative indicators;
4) compliance withfinancial methods of controlling specific methods of financial analysis andfinancial planning;
5) the timeliness,simplicity and flexibility of the system of financial controlling;
6) cost effectiveness ofintroducing financial controlling in the enterprise. [22, sec. 153]
Given the above principlesof financial controlling in the enterprise is based on the following stages:
1. Defining ObjectControlling. This is a general requirement to build any kind of controllingposition in the company of his landing target. The object is controlling thefinancial management decisions over key aspects of financial activity.
2. Identification ofspecies and controlling areas. According to the concept of the system ofcontrolling, it is divided into the following main types: strategiccontrolling; current controlling; operational controlling. Each of these typesof controlling perlichenyh to meet its scope and frequency of exercise of itsfunctions.
3. Formation of priorityindicators that are controlled.
The entire system ofindicators on the importance zhyruyetsya wounds. Duringthe first such ranking in priority are selected first level of the mostimportant indications of this kind of controlling, then formed the system ofpriorities of the second level indicators which are in connection withchynnykovomu indices of the first level, similarly formed a system ofpriorities of the third and subsequent levels. [22, sec. 159]
When formulating thesystem of priorities should be taken into account that they can wear adifferent character for certain types of responsibility centers, separatedirections for financial activity, for various aspects of the formation,distribution and use of financial resources. However, it should be ensuredhierarchical summary of all control parameters in the enterprise in general andin specific areas of financial activity.
4. Develop a system ofquantitative control standards. After identifying and ranking the list offinancial indicators, which are controlled, there is a need to establishquantitative standards for each. Such standards may be set in absolute and inrelative terms. In addition, these quantitative standards can be stable ormovable nature. Standards are the strategic target ratios, indicators ofcurrent plans and budgets, the state system now or developed norms andstandards of others.
5. Building a system ofmonitoring indicators contained in the financial controlling. Monitoring System(vidstezhuvalna system) is the basis of financial controlling, the most activepart of its mechanism. [10, sec. 99]
Theprimary step in improving the financial status of Ukrainian enterprises isfinding the optimal ratio of own and borrowed capital, which would provideminimal financial risk for maximum return on equity. Optimizingliquidity capacity of enterprises is implemented through the operationalmechanism of financial stability — a system of measures on the one hand, toreduce the financial obligations on the other hand, the increase in cash assetsto ensure these obligations. Financial liabilities the company may decrease dueto: decrease the amount of fixed costs (including costs for administrativestaff); reducing semi-variable costs; extension payable by commoditytransactions; postponing dividends and interest payments. Increase the amountof monetary assets can be due to: refinancing receivables (by factoring,discounting and discounting of bills, forfeiting, enforcement); accelerationcollection period (by shortening the commercial credit), optimization ofinventory inventory (commodity by setting standards stocks using technical andeconomic calculations) reduction of insurance, warranty reserves and seasonalbusinesses to stay in the financial crisis.
It is appropriate to drawattention to the fact that to improve his financial situation of producers ofgoods and services must implement all the products that stagnates inwarehouses. To expand the distribution business can create retailers. This willincrease profits and increase capital turnover. Implementationof this project certainly does not solve the current financial problems, butwill shorten the life of the product and speed up payments to creditors. Thefinancial condition of the enterprise can not be sustained unless it receivesincome of which provide the necessary increase in financial resources tostrengthen the material base of enterprises and their social sphere. [1, sec.83 — 90]
Information about thefinancial condition of the enterprise is crucial for the management and forinvestors. Therefore deserves attention on the problem of information for theenterprise. Reliability of data of financial position is essential for makingcorrect management decisions [7. 38 — 41].
Given the problems of thefinancial condition of the company in financial crisis and the need tostabilize the financial stability of enterprises in conditions of financialinstability, we should take the following measures:
— Elimination of theexternal factors of bankruptcy, improve the current calendar financial documentin which information is displayed currency of the company;
— Adjust the work inprogress; nyzkooborotnyh transfer assets to a high speed;
— Use of local measures toimprove the financial position, providing the financial situation ofenterprises in the medium term, which appears in a stable flow of revenues fromthe sale of sufficient liquidity, improving product profitability, setting thesuspension of penalties for overdue debt, providing sufficient financialresources to cover new current liabilities; gradual repayment of old debts, cutcosts to the minimum level of energy and resource saving measures;
— A stable financial base,ensuring sustainable financial situation of enterprises in the long run,creating the optimal balance sheet structure and financial results, financialenterprise system to adverse external influences. [23, sec. 233 — 236]
Achieving economicsustainability of the enterprise is only possible using elements of modernmanagement, timely response to changing external environment and strategicvision of the company. Improving the financialwork in the business should make in the following areas: system and permanentfinancial analysis of their activities, the organization of working capitalassets in accordance with existing requirements to optimize the financialcondition, the introduction of management accounting and therefore the costsof, optimizing the distribution of earnings and dividend most effective choice policy,the wider introduction of commercial credit in order to optimize the sources offunds, the use of leasing for the development of production, the introductionof modern cash management, development and implementation of strategicfinancial policy of the company.
CONCLUSIONS
Financialstanding — the most important characteristics of economic activities of theenterprise. It reflects the competitiveness ofthe enterprise, its potential for doing business, assesses the extent to whichguaranteed the economic interests of the enterprise and its partners forfinancial and other relationships.
Investigations of ways toimprove the financial condition of the company allowed to make certainconclusions concerning the main directions of improving the financial conditionof the enterprise and its financial strategy. The financial condition of thecompany — a real (for a fixed time) and the potential financial capability ofcompanies to provide some level of financing activities, self and liabilitiesof the enterprises and the state. Quantitativelyit measured system performance for which is its valuation. Theimportance of the objectives of assessing the financial condition of theenterprise is its information provision. One of the most importantcharacteristics of the financial condition of the company is financialstability. It is formed during the whole business.
Financialstability — is a state of financial resources so that enterprise, free cashmaneuvering, could by their effective use to ensure a continuous process ofproduction activities and its expansion and upgrade. The highest financialstability are companies that use only equity (ratio of autonomy is one).However, this limits the pace of their development (as can not provide thenecessary additional amount of assets during periods of favorable market) andthey do not use the financial ability to increase profits on invested capital.
Search ofeffective management of financial resources and ensure their integration into areal market economy makes the need to develop a financial strategy at thisstage of enterprise development.
Thus,ways of improving financial planning business has become:
— The useof financial planning with sufficient information base that would meet therequirements of the manager as the number and quality.