Introduction
1. Theme urgency
2. Goal and tasks of the research
3. Specificity of financial and economic indicators of the enterprise
4. Principles of management of financial and economic results of enterprises
5. A set of recommendations for optimizing the management of financial and economic results of the enterprise
Conclusion
References
Introduction
In modern conditions of market economy, the study of financial and economic results of enterprises is of particular importance. This is connected, first of all, with the formation of the independence of economic entities, since profit is the main source for financing their activities, ensuring financial stability and solvency.
Theme urgency
The relevance of the study is due to the fact that the creation of a quality mechanism for managing financial and economic results in an enterprise will help optimize its income and expenses, which will ensure the stable development of the enterprise in the long term.
Goal and tasks of the research
The aim of the study is to refine the theoretical and methodological foundations and formulate guidelines for optimizing the process of managing financial and economic results in enterprises.
The object of study is the economic and business processes that are planned and carried out at enterprises in modern economic conditions.
Subject of research – the principles and methods of profit management in enterprises in the current economic conditions.
According to the formed goal, the following tasks are set in the work, which allow to reveal the subject and object of study:
• Expand the essence of the concept of profit;
• Analyze profit management in the post-Soviet countries;
• To study the principles of management of the formation and distribution of profits in enterprises;
• Describe the specifics of profit management in the enterprise;
• To provide a set of recommendations for improving the process of managing profits in enterprises.
The object of study is the economic and business processes that are planned and carried out at enterprises in modern economic conditions.
Subject of research – the principles and methods of profit management in enterprises in the current economic conditions.
Specificity of financial and economic indicators of the enterprise
The main purpose of business is profit. Profit in modern conditions is both a source of enterprise development, and creates the basis for the growth of the national economy as a whole [1].
Profit functions:
– Evaluation function – profit characterizes the economic effect of the enterprise, i.e. gives an assessment of how effective the organization’s business is. When analyzing the financial and production activities of an organization, it is impossible to use only the profit indicator, since It is impossible to evaluate all aspects of the organization’s activities. For this purpose, a set of indicators is used. Profit reflects the final result of the activity.
– Stimulating function. Profit is also the main component of the financial resources of the enterprise. It is used to finance production activities, material incentives for workers. For the social and scientific-technical development of the organization, a sufficient share of net profit is needed.
– Fiscal function. Profit is a source of deductions to the state budget and extra-budgetary funds, entering there in the form of taxes [2].
The purpose of the financial activity of the enterprise is not only to make a profit, but also to ensure high profitability. In contrast to the absolute rate of return shows the level of profitability relative to a particular base. An enterprise functions efficiently and profitably, if the amount of revenue from products is sufficient not only to cover the costs of production and sales, but also to generate profit [3].
Profitability indicators characterize the relative profitability of an enterprise from various positions and are grouped in accordance with the interests of the participants in the economic process. It is possible to compare profits with the factors that influence it, form a set of profitability indicators. They differ in the meaning and purpose of the calculation [4].
Thus, profitability indicators can be combined into several groups:
– indicators characterizing the profitability of capital and its components;
– indicators characterizing the profitability of assets and their components;
– indicators characterizing the profitability of costs and investments;
– indicators characterizing the profitability of sales.
Principles of management of financial and economic results of enterprises
Management of financial and economic results is a system of principles and methods for the development and implementation of management decisions on all major aspects of their formation, distribution and use in the enterprise.
The formation of the profit of the enterprise occurs in the process of its operating, financial and investment activities. Profit from operating activities is formed as a result of operations related to the production or sale of products, which is the main purpose of the enterprise and provides the bulk of its income. Financial activities include activities that lead to changes in the size and composition of the company's own and borrowed capital, and investment activities – activities related to the acquisition and sale of non-current assets, as well as those financial investments that are not part of cash equivalents [5] .
Important in the process of profit distribution is the establishment and compliance with the optimal ratio between the value of that part of the profit, which is aimed at paying taxes and the net profit of the company, so we can distinguish two stages of profit distribution:
1. The distribution of profit before tax.
2. The distribution and use of profits that remained at the disposal of the enterprise after the payment of payments to the state budget.
The net profit of the enterprise is distributed in two directions [6]:
– It is directed on payment of dividends, incomes to founders of the enterprise, additional issue of shares, increase in authorized capital.
– Remains at the disposal of the enterprise, as a source of financing of the enterprise.
A set of recommendations for optimizing the management of financial and economic results of the enterprise
There are 3 alternatives for increasing profitability that need to be disassembled in detail to the enterprise and which are very relevant [7]:
1. The increase in prices while maintaining the value of expenses. Earnings can be increased in several ways:
– price increase for your product;
– increasing sales;
– the increase in the difference between price and cost of goods.
2. Reducing costs or cost while maintaining the value of earnings. The second alternative is to reduce the amount of total expenses. This can be achieved by reducing the cost of goods.
3. Simultaneous increase in prices and cost reduction. This can be achieved through mass production. The principle of economics, due to the growth of the scale of production, can lead to the desired goal.
Conclusion
Financial and economic results of activity are the main source of enterprise development, scientific and technical improvement of its material base and products, all forms of investment.
One of the main financial and economic results is profit. Profit management is a system of principles and methods for the development and implementation of management decisions on all major aspects of its formation, distribution and use in the enterprise.
The formation of the profit of the enterprise occurs in the process of its operating, financial and investment activities.
There are two stages in the distribution of profits:
1. The distribution of profit before tax.
2. The distribution and use of profits that remained at the disposal of the enterprise after the payment of payments to the state budget.
The correct approach to the choice of financial management strategy and the implementation of the proposed recommendations will increase the efficiency of the enterprise.
References
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