The task of financial management is finding a balance between short-term and long-term development objectives of the company and decisions in the short and long term financial management. Objective of financial management is to set priorities and trade-offs for the optimal combination of interests of various economic units in the adoption of investment projects and the choice of sources of financing. Tactical objectives of financial management: balance and timing of receipt of funds; providing necessary revenue; ensuring sales profitability (competitiveness at the operational level). Thus, the operational (tactical) management is essentially the management of working capital of the enterprise. Ultimately, the main objective of financial management – decision-making to ensure the most efficient movement of financial resources between the firm and its financing sources both external and internal. Specific forms and methods of realization of the functions and objectives of financial management define financial policy of the enterprise. Development and implementation of financial policies play an important role in the General mechanism of centralized control. Its role in the Central management of the firm is determined by the fact that it affects all aspects of economic activity of the company is scientific and technical, production, logistics, sale, and reflects in a concentrated form, the influence of numerous internal and external factors. In the framework of the unified financial policies formulated at the highest level of management are determined globally, the sources of financial resources and their distribution within the firm.
Methodical basis for the development of financial policy in a particular firm may be the Order of the Ministry of economy of the Russian Federation "guidelines for the development of a financial policy of the enterprise" from 01.01.97 No. 118, which includes the following elements: · accounting policy; · credit policy; · the Treasury policy; · policy of cost management; · dividend policy. The choice of accounting policy, the entity shall implement, in accordance with national accounting standards. In Russia, such a document is a Position in accounting. In the framework of the credit policy addressed the issue of the availability of working capital — determination of the own funds of the loan. Policy cash management is connected with the optimization of the balances, minimize gaps between receipt of funds and their use, the use of various schemes envisaged in the treaties. Policy of cost management is implemented through the development of the budgeting system, which includes development of budgets (budgets) for all major cost elements and exercise effective control over their execution. Dividend policy must balance the protection of the interests of owners with the interests of managers and investors with the aim of maximizing the company value. The following options dividend policy: · dividends as a constant percentage of the profits; · the policy of forced dividends – dividends are paid in a fixed amount per share; · the policy of guaranteed minimum payments and extra dividends; · capitalization dividend – payout dividend stocks (financial difficulties).
In modern conditions the main feature of the financial policy of firms is the integrated use of financial instruments, and depending on the specific conditions prevailing value in some periods may be given to a tool. There are three main categories of financial instruments: cash and cash equivalents (funds on hand and on current account, currency); credit instruments (bonds, forward contracts, futures, options, etc.); and methods of participation in the authorized capital (stocks and shares). The main methods of financial management implemented during the conduct of financial policies, are: forecasting, planning, taxation, insurance, loans, financing, accounting system, system of financial sanctions, the system of production depreciation deductions, incentives, pricing, trust operations, transfer operations, mortgage operations, rent, leasing, factoring.
For the implementation of these methods uses techniques of financial management: credits, loans, interest rates, dividends, quote exchange rates, discounting, etc. The information basis of the system of financial management is any information of a financial nature: — accounting reports; messages of the banking system; — information commodity, stock and currency exchanges; — other information. The functioning of any system of financial management is carried out within the existing legal and regulatory support: laws, presidential decrees, Government resolutions, orders and regulations of ministries and departments, licenses, statutory instruments, regulations, instructions, guidelines, etc. In the conditions of market economy the financial Manager becomes one of the key figures in the company. He is responsible for the formulation of problems of a financial nature, the analysis of whether the choice of a particular method of solving them, and sometimes for making final decision on selection of the most appropriate course of action. The financial Manager is generally responsible for the decision made, and also provides operational financial activities.img src="images/8.jpg" style="float:right; width:200px; height:150px; border:1px solid black; margin:5px; padding:1px;">Stages of development of the business plan production Our company has created a proprietary algorithm to create this document, which invariably leads to excellent results. Planning we divided into 5 stages. The conclusion of the contract and the writing of technical specifications – specialists conduct an interview, during which define the client's goals, clarify special requirements to the document. Then discussed ways of cooperation, formed a further strategy work. Collection and systematization of data in this phase analyzes the available information, we investigate the situation in the industry, put forward the main ideas of the project. Development of financial models for transactions of major economic indicators, issued a forecast of project effectiveness. Updating of the project – generated document comprehensively studied by the specialists of the company that makes the necessary clarification. Modifications are made until full compliance with technical specifications and the stated objectives. Protection Experts and partners will help you to present your business plan to all stakeholders: investors, banks, government agencies. Extensive experience of drafting and protection of business plans allows us to judge about all its advantages and disadvantages. We will help you to present a new project with the best hand, to minimize the risks associated with its implementation. 5 reasons to order us to the development of a business plan for the organization. The focus on improvement in one indicator (e.g., profitability) without regard to the other can lead to significant problems in the company. Even a profitable company can go bankrupt just because of one error in working capital management, due to which she did not enough liquid assets to pay its short-term debt liabilities. This example demonstrates that the company is in the course of their activities should be monitored and maintained a lot of options activity, daily maintaining the necessary balance between the elements of the control system of the company. For each company there are the most relevant indicators, the balance which must be maintained. For some companies it is important at the outset to maximise cash flows, for other companies, the key is to maintain an optimal capital structure while maintaining the minimum required level of liquidity. But, of course, a determining factor in the formation of an appropriate mix between various aspects of business is the concept of the value of the company when the liquidity, profitability, solvency and long-term fiscal sustainability are those categories, on the basis of the analysis is determined by the value of the company. Achieving the optimal combination of values of performance indicators that maximizes the value of the company, along with constructive analysis of the causes of arising deviations possible through the establishment of a coordinate system in which to understand the contribution of each indicator in the overall picture of the company's activities. Such a coordinate system can be formed, considering the current financial condition of the company and conducted a comprehensive analysis of financial and economic activity of the recent past, and then comparing the results with established strategic goals of the company. In order to get a holistic view of their work, the Company should regularly conduct a comprehensive analysis of its financial activities. Even if the company has an acceptable, as it seems, financial indicators, it does not mean that their combination best suits the company's strategic objectives. It is also possible that against the overall favorable situation, in the company's activities increase certain negative trends (e.g., growth in the share of overdue receivables), which in the nearest future unexpected for a company to worsen its financial position. Such trends have to be monitored at the initial stage, when they have not yet acquired much influence on the Company and there is the possibility of surgical removal. Thus, a comprehensive and regular analysis of financial and economic activity is the key instrument by which the company can ensure that its provision meets the strategic goals that she has. An analysis is also necessary when preparing the business for sale and finding an investor, because in the modern world of communication with investors is, first of all, the conversation at the level of the financial performance of the company. In order for the company to appeal to potential investors, it must make full use of the possibilities of analysis demonstrating compliance with the performance expectations of investors. Moreover, the analysis should not be limited to analysis of indicators calculated on the basis of standard statements of the company, as often happens in domestic practice. The analysis must combine all possible areas of business analysis, beginning with an analysis of the standard coefficients of the accounting statements and to methods of valuing the company.