Financial Management. Financial Control at an Enterprise

Financial management is a system of rational management of the movement of cash flows arising in the course of the economic activity of the enterprise in order to achieve the goal. In other words, it is connected with the optimization of the financial resources of the enterprise in order to achieve the maximum income for the owners.

The financial service develops and implements the strategy and tactics of financial management in order to increase the liquidity and solvency of the enterprise.

Financial control at an enterprise is a system of actions and operations for checking financial and related issues of the activities of business entities using special methods. The tasks of financial control include ensuring compliance with the legality of financial activities, preventing insolvency and bankruptcy, identifying internal reserves, improving the efficiency of the enterprise through more rational use of resources, checking the correctness of accounting, determining the amount of damage, and studying the possible responsibility of managers. Financial control includes control by credit institutions and shareholders.

Internal control is applied - checking the effectiveness of the use of financial resources (own, borrowed, attracted), analysis and compilation of actual financial results with predicted ones, financial assessment of the results of investment projects, reliability of financial statements, control over financial condition. The scope of state financial control is shrinking. It concentrates on the sphere of economic processes, including control over the cost proportions of the movement of GDP, the money supply, the formation and use of funds of funds that are at the disposal of the state.

The scope of non-state financial control by audit and insurance firms, credit organizations is expanding. Special supervising bodies of representative power have been created. At the level of individual economic entities, there is an increased attention to the financial examination of investment projects with the involvement of specialized consulting firms, investment banks and financial corporations.

Financial control carried out prior to financial transactions is called preliminary. It is carried out to prevent financial violations. They carry out the development of financial plans and estimates, credit and cash applications, financial sections of business plans, preparation of forecast balance sheets, memorandums of association, agreements on joint activities.

Operational financial control is carried out at the time of financial transactions. Subsequent financial control is carried out by analyzing the reporting financial and accounting documentation. In the course of inspections, on the basis of reporting documentation and expenditure documents, certain issues of financial activity are considered and measures are outlined to eliminate the identified violations. The activities of commercial banks are supervised by the Central Bank of Russia. The deepest method of financial control is audit.

Audits are full and partial, scheduled and unscheduled, documentary and actual. The results of the audit are documented in an act, on the basis of which measures are taken to eliminate violations, compensate for material damage and bring the perpetrators to justice.

Financial control, like planning, is the most important indicator of financial management. It is a manifestation of the control function of finance and is the practical activity of special bodies or specialists to verify the legality of financial transactions.

The scope of financial control is the process of formation and use of financial resources and monetary funds based on them. The object of financial control is various aspects of the activities of participants in the distribution process, i.e. the object is wider than the scope of activity.

There are various types of financial control depending on the bodies that carry it out:

1) State financial control:
- non-departmental (national);
- departmental (non-state).

2) Non-state financial control:
- on-farm;
- public;
- auditor;
- insurance.

National (non-departmental) control is carried out by the highest bodies of state power, as well as special bodies. The peculiarities of this control are that it is carried out by controlling organizations at each enterprise and organization, regardless of the BPF.

The most important structures exercising non-departmental control: from the legislative side - through a specially created body - the Accounts Chamber of the Russian Federation. Similar structures have been created at the regional and local levels (they are called Accounts or Control; for example, there is the Accounts Chamber under the Moscow Duma). The Accounts Chamber is a legal entity accountable to the Parliament of the Russian Federation and consists of the Chairman, deputies, auditors and an executive office.

The main tasks of the Accounts Chamber:
1. Carries out financial expertise of draft Federal Laws and government acts, federal government bodies that provide for additional expenses from the federal budget or affect its implementation.
2. Evaluation of the validity of projects of the Federal budget and extra-budgetary funds.
3. Determining the efficiency and expediency of spending public funds, as well as the use of state property.
4. Control over the timely execution of revenues and expenditures of the Federal budget and off-budget funds.
5. Analysis of deviations from budget execution, proposals for their elimination.
6. Control of the legality of the movement of federal funds and funds of extra-budgetary funds through the banking system.