Full name of the research object – closed Joint-Stock Company"Kuban-GSM"; on English language– Closed Joint Stock Company “Kuban-GSM”.
Abbreviated name: CJSC Kuban-GSM, CJSC Kuban-GSM.
Location: Russia, Krasnodar, Western Administrative District, Gimnazicheskaya St., 61
General Director – V.E. Moskalenko;
Chief accountant T.A. Korsun
Board of Directors:
Smirnov Mikhail Alekseevich, born in 1950
Blinov Andrey Konstantinovich, born in 1965
Gorbachev Vladimir Lukich, born 1950
Ushatsky Andrey Eduardovich, born in 1974
Kondrakov Yuri Ivanovich, born in 1954
Sole executive body – CEO Moskalenko Vyacheslav Efimovich, born in 1949
A collegial executive body is not provided for in the charter.
CJSC Kuban-GSM is registered by the Registration Chamber of Krasnodar (Registration Certificate Series B No. 6948 dated May 15, 1998).
CJSC Kuban-GSM was created on May 15, 1997. In a short period of time, the network was installed and configured and on December 15, 1997, it was launched into pilot commercial operation. The company began to operate in the territory Krasnodar region and the Republic of Adygea. The company was created for an indefinite period.
The purpose of the Company's economic activity is to generate profit through planning, marketing and operation of a cellular mobile radiotelephone communication network in the Krasnodar Territory and the Republic of Adygea in accordance with licenses issued by the Ministry of Communications of the Russian Federation.
CJSC "Kuban-GSM" in Krasnodar region and the Republic of Adygea is the leader in the cellular communications market in the South of Russia, already serving more than a million subscribers in the region.
Since June 2003, CJSC Kuban-GSM has been operating under the single MTS brand and has introduced new, more profitable uniform tariff plans of the federal MTS network: “MTS. Optima", MTS. Business", "MTS. VIP" and "MTS. Corporation", "Jeans-Tonic" (and the "Extra-Jeans" service introduced on May 1, 2004), "Super-Jeans", which most fully take into account the needs of all cellular users. Every second family in the region uses the services of the MTS cellular network in the Krasnodar Territory and the Republic of Adygea.
The quality of communication and subscriber service is always a priority in the company’s activities, so increased attention is paid to it.
To provide best communication In the Krasnodar Territory and the Republic of Adygea, switching capacity is constantly being expanded, new base stations are being installed, and existing ones are being modernized.
Branches opened in major cities regions: Novorossiysk, Sochi, Maikop, Tikhoretsk, Tuapse, Armavir. Customer service centers have been opened in Anapa, Gelendzhik and other cities of the Krasnodar Territory.
Today, CJSC Kuban-GSM provides coverage of about 70% of the Krasnodar Territory and the Republic of Adygea, including the largest cities on the Black Sea coast, which are visited by more than 5 million people every summer season.
The technical innovations introduced by the company provide subscribers with the opportunity to make full use of the capabilities of their phone. In addition to standard, the company also provides Additional services who do mobile phone not just a means of communication, but also an indispensable assistant for business and personal use.
Based on the results of the past year, CJSC Kuban-GSM was awarded the title of “Best Enterprise” in the postal and electrical communications industry. Over the past 2 years, Kuban-GSM has been a regular winner of this competition
In 2002, General Director of Kuban-GSM CJSC V.E. Moskalenko was among the best top managers in Russia.
In 2002, CJSC Kuban-GSM took 1st place in terms of the number of subscribers in the Southern Federal District.
First of all, it should be said that the structure of an organization is a logical relationship between management levels and functional areas, built in a form that allows the organization's goals to be most effectively achieved.
The highest management body of the enterprise CJSC Kuban GSM is a meeting of shareholders. Once a year, the company holds an annual meeting of shareholders, but in addition to the annual meeting, extraordinary meetings can be convened.
Extraordinary meetings of shareholders may be called by the General Director to consider any issues.
The General Director exercises sole operational management of the company's activities and is endowed, in accordance with the legislation of the Russian Federation, with all the powers necessary to perform this task.
Organizational and management structure diagram CJSC Kuban-GSM shown in Fig. 1.
The organizational structure of CJSC Kuban-GSM can be characterized as a linear-functional type based on the “mine principle”.
Table 1
Analysis of linear-functional structure CJSC Kuban-GSM
|
Advantages |
Flaws |
|
1. Frees line managers from dealing with some special issues. 2. Creates the basis for the use of experienced specialists in consultations. 3. Reduces the need for generalists. 4. Efficiency through specialization of activities. 5. Centralized control over strategic decisions. 6. Differentiation and delegation of powers. 7. Stimulates business and professional specialization. 8. Reduces duplication of effort and consumption material resources in functional areas. 9. Improves coordination in functional areas. |
1. Relationships become more complex. 2. Coordination becomes difficult. 3. There is a tendency towards excessive centralization. 4. Promotion of narrow specialization of departments. 5. Difficulties in coordination. 6. Limited opportunity for managerial development. 7. Departments may be more interested in achieving the goals and objectives of their divisions than the overall goals of the entire organization. This increases the potential for conflicts between functional areas. 8. In a large organization, the chain of command from the manager to the direct executor becomes too long. |
The linear-functional management structure of Kuban-GSM CJSC includes one block - the marketing department, the technical and production department, International Department and the sector of interaction with foreign partners, the investment department and the sector corporate development, Department of Integration of Radio Subsystems and Communication Quality Control, Department information technologies and department software, administrative management department, public relations and dealer relations department, financial department (accounting, tax minimization and internal audit department, commercial department), legal department, human resources and personnel development department of the enterprise. These are the broad areas of activity or functions that a company has to ensure that the organization's goals are achieved. However, the specific names of such departments may vary, and traditional designations do not provide an accurate description of the most important functions of some areas of production activity. But the size of these functional departments is large and the main departments can in turn be subdivided into smaller functional units.
Let's move on to analyzing the structure financial service the enterprise under study.
2. FUNCTIONAL AND ORGANIZATIONAL STRUCTURE OF THE FINANCIAL SERVICE OF THE ENTERPRISE STUDY
Finance is the lifeblood of an enterprise, and financial system- This is the circulatory system that ensures the life of the enterprise. The financial service of the enterprise is responsible for its functioning.
1. Mission of the financial service of CJSC Kuban-GSM
Purpose:
ensuring long-term effective economic activity of the enterprise in a constantly changing competitive external environment;
ensuring constant growth in the volume of activity of the enterprise and its market value.
Field of activity:
economic activity and enterprise development;
enterprise finances.
Control objects:
Economic activities of the enterprise:
— operating activities of the enterprise;
— trade policy (pricing, trade discounts, terms and volumes of trade loans, barter transactions, etc.);
— financial condition of the enterprise: solvency, financial stability and financial balance;
- level and dynamics financial results activities of the enterprise: cost and profitability, tax policy, etc.;
— profit: distribution and dividend policy;
— financial risks of economic activity.
Enterprise finances:
— current assets: structure and volume, turnover, renewal, optimization and financing;
— cash flows from operating, financial and investment activities;
— non-current assets: structure and volume, renewal, optimization and financing;
— capital: price, formation and optimization of structure and volume;
— borrowed financial resources: attraction;
— real and financial investments;
— movement of financial resources ( Money and their surrogates) between stores and their sources of financing (external and internal);
— financial relationships with budgets and banks.
2. Functions of the financial service of CJSC Kuban-GSM
There are three planning periods and, accordingly, three levels of financial management:
Strategic financial management. The planning period is from 2 to 5 years or more. Focused on organizing medium- and long-term financing of enterprise activities and development.
Current financial management. The planning period is one year, broken down by quarter. Focused on organizing short-term financing of enterprise activities.
Operational financial management. The planning period is one quarter, broken down by month. Focused on organizing short-term financing of enterprise activities.
In accordance with the levels of financial management, the functions of the financial service of the enterprise CJSC Kuban-GSM are determined.
Table 1 – Functions of the financial service of the enterprise CJSC Kuban-GSM, depending on the level of financial management
|
Financial management level |
Functions of the financial service |
|
|
Financial and economic management economic activity enterprises |
Enterprise financial management |
|
|
Strategic |
Development of corporate financial |
|
|
Current |
Participation in business planning |
Organization of project financing |
|
Operational |
Operating room budget management |
Organization of financing |
3. Financial management process
Management of financial activities (i.e. financial management) of an enterprise financial service CJSC Kuban-GSM
carries out by setting target financial indicators, standards and objectives of the enterprise for the planning period and organizing their implementation.
The process of managing the financial activities of an enterprise CJSC Kuban-GSM
includes:
Analysis of the financial and economic condition of the enterprise for the past planning period.
Development of a financial strategy for the enterprise for the planning period.
Development of a financial plan - a system of target financial indicators, standards and objectives of the enterprise for the planning period.
System development management decisions in area financial activities for the planning period.
Monitoring the implementation of management decisions made in the field of financial activities
Adjustment of management decisions made in the field of financial activities based on control results.
Analysis of the financial and economic condition of the enterprise for the past planning period includes:
horizontal financial analysis: comparison of financial indicators of the reporting period with those of the previous period, comparison of financial indicators of the reporting period with indicators of the same period last year, comparison of financial indicators for a number of previous periods;
vertical financial analysis: structural analysis of assets, capital, cash flows, etc.;
comparative financial analysis: comparison with industry average financial indicators, with financial indicators of competitors, with financial indicators of structural units of the enterprise, comparison of reported and planned financial indicators, etc.;
analysis of financial ratios (R - analysis): financial stability, solvency, asset turnover, capital turnover, profitability, etc.;
integral financial analysis, using any of the corresponding systems: DuPont, object-oriented system of integral analysis or another.
Development of a financial strategy for an enterprise CJSC Kuban-GSM
for the planning period is based on overall strategy economic development enterprises and includes:
determination of the general period for the formation of the financial strategy;
study of factors of the external financial environment and financial market conditions;
formation of a system of strategic goals and target indicators of the enterprise’s financial activities;
identification of priority tasks to be solved in the near future;
development financial policy actions of the enterprise on certain aspects of financial activity;
assessment of the developed financial strategy.
Development of a financial plan - a system of target financial indicators, standards and objectives of the enterprise for the planning period is a specification of the target indicators of the financial strategy for the periods of its implementation
Development of a system of financial management decisions in the field of financial activities for the planning period includes:
development of a system of organizational and economic measures to ensure the implementation of the financial strategy;
formation of a system of incentives and sanctions for heads and managers of structural divisions of the enterprise for fulfillment or failure to fulfill established financial targets, standards and targets;
implementation of the system (through the budgeting system and with the help of other tools, including such as, for example, a contract form of remuneration for executives and managers of structural divisions).
Monitoring the implementation of management decisions made in the field of financial activities (Table 2).
Table 2 - Three main types of financial control:
|
Type of financial Control |
Main area of control |
Main control period |
|
Strategic control |
Control of financial strategy and its targets |
Quarter; year |
|
Current control |
Control of current financial plans |
Month; quarter |
|
Operational control |
Budget control |
Week, decade, month |
Each type of financial control involves:
building a system of informative reporting indicators;
development of a system of generalizing (analytical) indicators reflecting the actual results of achieving the specified quantitative control standards;
determination of the structure and indicators of the forms of control reports of performers;
determination of control periods for each group of controlled indicators;
monitoring the achievement of the required values of controlled indicators by structural divisions and the entire enterprise
establishing the size of deviations of the actual results of controlled indicators from established standards;
identifying the main reasons for deviations of the actual results of controlled indicators from established standards.
Adjustment of management decisions made in the field of financial activities based on the results of control and bringing them to the relevant departments of the enterprise.
3. STRUCTURE OF THE FINANCIAL SERVICE OF THE ENTERPRISE
The general rule for forming a team of employees in the financial service of an enterprise is high qualifications and economically justified staff minimization. Therefore, the structure of the financial service of the enterprise CJSC Kuban-GSM
was formed gradually, as the enterprise developed, mastered modern technologies and implementation modern instruments financial management, financial centralization - economic management enterprise and the formation of a high corporate culture at the enterprise.
Structure of the financial service of the enterprise CJSC Kuban-GSM
shown in the figure. It consists of two main divisions (financial management and planning), which for the sake of convenience are called departments. Financial service units consist of specialized groups. A group can consist of one or more people. For smaller businesses, one person can represent multiple groups.
Enterprise accounting CJSC Kuban-GSM
within the framework of financial management, he specializes in financial accounting and is one of the sources of information for the activities of the financial service. It is advisable to separate it from the financial service of the enterprise, which will ensure control over the finances of the enterprise independent of the financial service (the so-called control in “two” hands).
Financial service CJSC Kuban-GSM
also engages specialists from legal and other departments of the enterprise as experts when performing certain works on financial management and in preparing regulatory, methodological, contractual and other documentation.
Rice. 1. Structure of the financial service of the enterprise CJSC Kuban-GSM
Enterprise financial management department. The department specializes in managing the enterprise's own financial resources and external financial resources.
Financial design group. Its main functions and tasks:
— development of normative and methodological documents on enterprise financial management;
— development of a financial strategy and preparation of draft management decisions on the strategic financial resources of the enterprise;
— development of proposals and preparation of draft decisions on the current and operational financial management of the enterprise;
— monitoring the status, control of execution and adjustment of management decisions made regarding the finances of the enterprise;
— preparation of draft decisions to improve the organization of financial management in enterprises.
Group for organizing external financing. Its main functions and tasks:
— development of regulatory and methodological documents on the organization of external financing;
— organizing the attraction of strategic borrowed capital from the financial market;
— organizing the attraction of real investments;
— organization of medium-term financing of the enterprise’s economic activities from the financial market;
— organizing short-term financing of the enterprise’s operating activities;
— placement of the enterprise’s free capital on the financial market.
Securities and Stock Market Group Its main functions and tasks:
— development of regulatory and methodological documents on the activities of the enterprise on the stock market;
— organizing the attraction of strategic borrowed capital from the stock market;
— organization of medium-term financing of the enterprise’s economic activities from the stock market;
— placement on the stock market of the enterprise’s free capital (monetary and in the form of securities, for example, bills).
Planning department The department specializes in the financial and economic management of the economic activities of the enterprise.
The department includes the following groups:
Strategic and current planning group. Its main functions and tasks:
— development of normative and methodological documents on strategic and current financial and economic planning at the enterprise and the functioning of the system of planned financial and economic documentation of the enterprise;
— development of a financial strategy for the enterprise;
— development financial sections annual business plan for the enterprise, and determination of annual planned financial and economic indicators;
— development of financial sections of business plans for enterprise projects;
— adjustment of financial strategy, business plans and planned financial and economic indicators.
Budgeting group. Its main functions and tasks:
— development of normative and methodological documents on budget planning at the enterprise and the functioning of the system of planned financial and economic documentation of the enterprise;
— development and adjustment of the consolidated operating budget of the enterprise;
— development and adjustment of budgets for operating activities of enterprise divisions.
Monitoring and control group. Its main functions and tasks:
— development of normative and methodological documents on monitoring, accounting, control and analysis of the implementation of financial and economic plans for the economic activities of the enterprise and the functioning of the system of financial and economic accounting and reporting documentation of the enterprise;
— monitoring, accounting, control and analysis of implementation:
general corporate financial strategy;
annual planned financial and economic indicators of the enterprise’s activities;
consolidated operating budget of the enterprise;
— monitoring and analysis of implementation:
planned financial and economic indicators of the activities of the enterprise divisions;
budgets for operating activities of enterprise divisions;
— preparation of financial and economic reporting documentation for the management of the enterprise.
A group of supervisors of enterprise departments. Its main functions and tasks:
— participation in the development of financial sections of annual business plans for the activities of divisions and the determination of annual planned financial and economic indicators;
— bringing planning documentation to the divisions of the enterprise (planned annual financial and economic indicators and operating budgets);
— monitoring and accounting for the implementation of planned annual financial and economic indicators and operating budgets of the enterprise’s divisions, preparation of reporting documentation for the management of the enterprise;
— development, together with the divisions of the enterprise, of proposals for adjusting the planned annual financial and economic indicators and operating budgets and bringing them to the management of the enterprise;
— organizing the implementation of normative and methodological documents regulating financial management in the divisions of the enterprise.
Financial information system administrators group: Its main functions and tasks:
— development and implementation of specialized software for financial management (financial management of an enterprise and financial and economic management of the economic activities of an enterprise);
— creation and organization of operation at the enterprise of a system of planning, accounting and reporting financial and economic documentation;
— creation, organization of implementation and operation of an automated financial information system (and its development) at the enterprise;
— creation of a database of financial and economic data on activities at the enterprise, its maintenance and updating;
— development of normative and methodological documents on the functioning of the enterprise’s system of financial and economic documentation, automated financial information system and financial and economic data base.
5. Stages of development of financial management in an enterprise
The activities of the financial service are aimed at achieving its external and internal goals.
In accordance with its external goals, the financial service must organize the financial and economic management of the enterprise as an economic structure operating and developing in a competitive dynamic business environment.
In accordance with its internal goals, the financial service in the process of development must itself develop technologically and organizationally.
We can distinguish the following stages of development of the financial management system at the enterprise and the corresponding stages of development of the financial service itself:
1. Enterprise implementation basic elements modern financial management
Includes development by departments and the enterprise as a whole individual elements technologies of financial and economic management. At this stage, the financial service begins to form the corporate financial culture of the enterprise.
2. Creation of basic elements of financial management at the enterprise This stage covers the activities of the financial service in mastering individual elements of the technology of a financial and economic enterprise and ends with the beginning of enterprise management using financial and economic methods.
3. Implementation of operational controlling systems in enterprise divisions This stage covers the activities of the financial service to create enterprises in the divisions full-fledged systems operational controlling (financial management based on the concept of budgeting). It ends with the beginning of regular operational management divisions of the enterprise using financial and economic methods
4. Creation of a current financial management system at the enterprise This stage covers the activities of the financial service to create a system of current (planning period - year) financial management at the enterprise and ends with the beginning of regular current financial and economic management of departments based on the concept of business planning.
5. Creation of a strategic financial management system at the enterprise This stage covers the activities of the financial service to create a promising system at the enterprise financial planning and ends with the beginning of regular strategic management of the enterprise using financial and economic methods.
6. Creation of a comprehensive financial management system at the enterprise This stage ends with the beginning of regular “end-to-end” financial and economic management of the enterprise as a single economic structure, including subsystems of operational, current and strategic management. Financial policy of the enterprise FINANCIAL STRATEGY AND FINANCIAL TACTICS
Today we are figuring out how to properly build the structure of the financial service? Do you need a financial director or is a chief accountant enough? Who should you obey? Chief Accountant? And finally, what finance structure will help the company operate effectively?
All questions are important, since we have already found out that order in finances and theirs is one of the main tools of a manager to improve business efficiency.
Types of financial service structures
Until a certain point, until about 1996, companies had only a chief accountant, who, naturally, reported to the general director:
With the advent of specialists with financial management skills on the market, financial directors began to appear in companies. In the period 1996-2005. The structure of the financial service in most companies looked like this: the company is headed by the general director, and the chief accountant and financial director report to him. I call this the “transition” structure, although many companies today live in this paradigm:
And, finally, the effective structure of the financial service, in which the majority of foreign companies live and work, and which is maximally focused on the interests of the company’s owners: at the head is the general director, the financial director reports to him, and the financial department, the planning department, is subordinate to the latter. economic department and accounting:
Effective financial service structure
Let's look at why the latter structure is the most effective.
Both accountants and financiers work with numbers. They take the numbers from accounting data or, more precisely, from accounting entries.
An accounting entry or accounting record is the encoding of information about a financial and business transaction that occurred at an enterprise. The money arrived in the bank account - an entry was made into the accounting system, the goods were shipped from the warehouse - the posting was recorded, the material was moved from workshop to workshop - everything was also reflected in the accounting.
The primary and most important task of all employees involved in accounting is the formation of complete and reliable information about everything that happens at the enterprise.
In the terminology used in the business environment, there are concepts:
- Accounting
- Tax accounting
- Management Accounting
- Financial Accounting
Each of these accounts generates its own final reporting form for different users.
Accounting- generates financial reporting forms according to the rules established by the Ministry of Finance of the Russian Federation.
Tax accounting needed to generate tax returns and submit them to the tax office according to the rules established by the Tax Code of the Russian Federation.
Management Accounting generates forms of management reporting for the owners and top managers of the company, with the help of which the company is managed according to the rules established by the company itself.
Financial Accounting is a system of financial indicators that diagnoses the financial condition of a company.
There may also be: production accounting, personnel accounting and so on.
The main rule: accounting must be configured in such a way that by entering information into the system once, you can receive different final forms. In this case, the result is achieved at the lowest cost, and therefore with the greatest efficiency.
You can set up the system in this way using analytics for each transaction - in accounting language this is called subconto - and using different information processing registers (all modern accounting programs contain this feature).
Then the accounting system will schematically look like this: the enterprise has a single accounting Information system, which forms management reporting for owners and top executives of the company, financial statements, tax returns.
So that in the end you can get correct forms reporting for all users, it is important to correctly encode information at the time it is entered into the system. And someone alone must be responsible to the director or owner of the company for the quality of the accounting system. It would be correct if this responsible person becomes the financial director.
The correct structure of the financial service allows you to:
- avoid biasing the accounting system towards the requirements of the Ministry of Finance;
- eliminate the conflict between the accounting and financial departments of the company;
- receive high-quality information about the company's activities.
Certainly, this structure will be effective if it has the necessary competencies, in particular knowledge of accounting and tax legislation.
Our specialists have all the necessary skills for this, so we create accounting that helps business develop. – we are interested in long-term relationships, so our solutions are reliable and optimal for our clients.
The most important areas of financial work at the enterprise are:
- Financial planning- carried out on the basis of analysis of information about the finances of the enterprise obtained from accounting, statistical and management reporting.
In the area of planning, the financial service performs the following tasks:
- development of financial plans with all necessary calculations,
- identification of sources of financing economic activities,
- development of a capital investment plan with the necessary calculations,
- participation in the development of a business plan, drawing up cash plans.
- ensuring timely payments to the budget, banks, employees, suppliers, etc.;
- ensuring financing of plan costs; processing loans in accordance with agreements;
- maintaining daily operational records of financial plan indicators;
- drawing up certificates on the progress of the plan and the financial condition of the enterprise.
The structure of the financial service largely depends on the organizational and legal form of the enterprise, its size, type of activity and tasks set by the company's management.
In small businesses for reasons economic feasibility there is no deep division managerial work and financial management is carried out by the manager himself with the help of an accountant. The main goal of managing the finances of a small enterprise is setting up and maintaining accounting and tax optimization.
With the growth of business, there is a need to manage costs, introduce budgeting and management accounting into financial policy, and work with accounts receivable, formation of credit policy.
In a medium-sized enterprise, financial management is carried out by the financial director, accounting service, and economic planning department. Financial management tasks: planning and optimization of cash flows, cost management, attracting additional funds, setting up and maintaining management accounting, financial planning, investment calculations.
The larger the business, the more important it is to ensure transparency and controllability of its divisions. For large businesses, one of the primary tasks is to promptly obtain information on the current state, performance results of individual divisions and the company as a whole.
On large enterprises the structure of the financial service is more complex and general view can be represented by a financial department with the following structural divisions: financial controlling department - planning and forecasting of the organization’s financial activities; accounting; Corporate Finance Department; IFRS department; tax planning department; internal audit department; risk management department.
General rule for forming a team of employees financial service of the enterprise - high qualifications and economically justified staff minimization.
That's why financial service structure of an enterprise is usually formed gradually as the enterprise develops.
Financial service units consist of specialized groups. A group can consist of one or more people. For smaller businesses, one person can represent multiple groups.
Accounting Enterprises within the framework of financial management specialize in financial accounting and are one of the sources of information for the activities of the financial service. It is advisable to separate it from the financial service of the enterprise, which will ensure control over the finances of the enterprise independent of the financial service (the so-called control in “two” hands).
The financial service also involves specialists from the legal and other departments of the enterprise as experts when performing individual works on financial management and in preparing regulatory, methodological, contractual and other documentation.
Enterprise Financial Management Department specializes in managing the enterprise's own financial resources and external financial resources.
Planning department specializes in financial and economic management of the economic activities of an enterprise.
Self-test questions
- What is an enterprise and its main features?
- Define the category “Enterprise Finance”.
- Name the financial relations that determine the content of enterprise finance.
- What are the main functions of organizational finance?
- Name the basic principles of organizing the finances of enterprises.
- Define the concept of “financial resources” and characterize their structure.
- Describe the financial mechanism of the enterprise.
- What factors influence the organization and structure of the financial services of an enterprise?
Financial service concept
Financial service is a structural unit in the organization of an enterprise that performs the functions of developing proposals for establishing the financial policy of the enterprise, as well as its implementation in various manifestations, control and preparation of financial statements.
The purpose of the financial service at the enterprise is to ensure the effective creation and further use of financial resources, as well as the organization and control of these processes
Tasks financial services
Basically, the tasks can be represented as the following diagram.
Functions financial services on enterprise
1. Organization of financial and credit planning (long-term, operational, annual balances), tasks and distribution of responsibilities between performers, monitoring the implementation of assigned tasks.
2. Carrying out calculations to provide staff with cash payments. If it is necessary to quickly receive funds into a bank account, the financial service speeds up the shipment and its payment of taxes and deductions. She also makes calculations of payments for submission to the tax office, draws up documents for obtaining loans, monitors the accuracy of completed documents for the shipment of goods, the completeness of payment of invoices and the timing of work.
3. Carrying out economic works, which increase production efficiency. Financial services are also responsible for developing and improving plans to accelerate turnover working capital, identification of unnecessary inventories, their sale. The financial service works closely with the marketing service to study consumer demand in the market, develop price plans for new types of products, etc.
4. Monitoring the implementation of financial plans, optimal use resources. The financial service carries out logistics contracts, and also monitors the implementation of the production plan, profit and profitability plan, and consideration of claims in line.
5. Analysis of the financial activities of the enterprise, using accounting, financial and statistical reporting, development of measures to increase production efficiency.
Stages development financial services, relevant stages development financial management:
1. Beginning of implementation of the basic elements of financial management at the enterprise. For the financial service, this stage means the beginning of the formation of a financial culture in the enterprise.
2. Drawing up the main elements of financial management at the enterprise. Here the financial service masters new technologies of the enterprise and begins to manage the enterprise using financial and economic methods.
3. Beginning of operational control at the enterprise. The financial service implements structural units enterprise operational control system.
4. Creation of current financial management at the enterprise. For the financial service, this stage means the foundation of financial management with a planning period of one year and planning.
5. Implementation of a strategic financial management system. The financial service begins to plan financial activities for the future and conduct regular strategic planning.
6. Creation complete system financial management at the enterprise. At this stage, management of the enterprise begins as a structure, consisting of operational, current and strategic management.
The activities of the financial service are subordinated main goal-- ensuring the financial stability of the enterprise, creating stable preconditions for economic growth and profit.
The main tasks of the financial service are:
- - provision of funds for current expenses and investments;
- - fulfillment of obligations to the budget, banks, other business entities and employees.
The financial service of the enterprise determines the ways and methods of financing costs. They can be self-financing, attracting bank and commercial (commodity) loans, attracting equity capital, receiving budget funds, leasing.
To ensure the timely fulfillment of monetary obligations, financial services create operational cash funds, form reserves, and use financial instruments attracting cash into the turnover of the enterprise.
The tasks of the financial service are also:
- - assistance to the most effective use fixed production assets, investments, inventories;
- - implementation of measures to accelerate the turnover of working capital, ensure their safety, and bring the size of own working capital to economically feasible standards;
- - control over the correct organization of financial relations.
The functions of the financial service are determined by the very content of financial work at enterprises. This:
planning;
financing;
investment;
organizing settlements with suppliers and contractors, customers and buyers;
organization of material incentives, development of bonus systems;
fulfillment of obligations to the budget, optimization of taxation;
insurance.
The functions of the financial department (service) and accounting are closely intertwined and may coincide. However, there are significant differences between them. Accounting records and reflects facts that have already happened, and the financial service analyzes information, plans and forecasts financial activities, presents conclusions, justifications, and calculations to the management of the enterprise for making management decisions, develops and implements financial policies.
By international standards the financial service should be separated from the accounting department, since they have different tasks and use various methods when determining available financial resources and funds. For example, accounting often uses the accrual method. In this case, the occurrence of income is considered to be the moment of sale of products, works, services, and expenses are considered to be the moment of its incurrence.
The financial service takes care of the constant availability of funds necessary for the current activities of the enterprise, monitors their receipt and expenditure. Hence, the financial function relies on the cash method (cash) in determining funds of funds. In this case, the occurrence of income and expenses is considered to be the moment of receipt and expenditure of cash.
The fundamental differences between the financial service and accounting lie not only in the approaches to determining funds, but also in the area of decision-making. Accounting works to collect and present data. The financial department (management), getting acquainted with the accounting data and analyzing them, prepares additional information. Based on the analysis of all these materials, specific decisions regarding the activities of the enterprise are made.
For domestic enterprises, it is useful to become familiar with foreign experience in managing the finances of corporations and firms, and financial management techniques. Independent financial services exist in all standard Western companies and usually have divisions (groups of specialists or departments). In European countries, financial service units are usually focused on financial methods management.
The financial service is headed by the financial director (vice president for financial affairs). Departments are subordinate to him, for example, financial analysis, financial control, financial planning, cash and short-term investments.
Requirements to professional level financial workers of enterprises are increasing. The head of the financial service must closely monitor changes in production efficiency and the economic policy of the state, and have knowledge in the field of macro- and microeconomics.
The following circumstances indicate that financial work at the enterprise is not smoothly organized:
The absence of a financial service as such or its performance of a role auxiliary to accounting or economic planning work.
Performance financial functions other departments (marketing, sales, planning department) in the presence of a financial organizational structure or their duplication of functions.
Unsatisfactory distribution of responsibility and authority.
Failure to perform many functions within financial management
Insufficient qualifications of financial workers, lack of understanding of many conceptual things (cash flows, budget, cost of capital) in the context of corporate strategy.
Imperfection of document flow, information and technical, incl. computer support for financial activities.
Lack of motivation of financial services employees, etc.
The negative consequences of poor financial management can manifest themselves as purely financial losses, losses and missed opportunities, or as a weakening of the quality of the business as a whole.