The financial structure of a modern enterprise. The financial structure of the enterprise and its formation - abstract

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Ministry of Education and Science of the Russian Federation

federal state budgetary educational institution higher professional education

"Vladimirsky State University named after Alexander Grigorievich and Nikolai Grigorievich Stoletovs

abstract

in the discipline "Finance and Credit"

on the topic "The structure of a financial organization"

Completed by: Huseynov T.S.

Received by: Omarov T.D.

Vladimir 2013

INTRODUCTION

CONCLUSION

List of used literature

INTRODUCTION

One of the differences between budgeting as a management technology is the ability to see the financial condition of an enterprise or firm in terms of its certain types business. As a matter of fact, the choice of financial structure is a choice of object of budgeting. Subsequently, it depends on him: what types of budgets will be used; what formats and technologies of budgeting should be used. With all the variety of classification options, three main groups of structural units - budgeting objects can be distinguished.

The financial structure is a hierarchical system of financial responsibility centers. It determines the procedure for the formation of financial results and the distribution of responsibility for achieving the overall result of the company. Financial structuring allows you to maintain an internal accounting policy, track the movement of resources within the company and evaluate the effectiveness of the business as a whole and its constituent parts. In other words, the presence of a financial structure allows the company's management to see who is responsible for what, allows you to evaluate, control and coordinate the activities of departments, helps to develop an effective system of employee motivation.

financial responsibility coordinating unit

1. BUILDING THE STRUCTURE OF FINANCIAL RESPONSIBILITY CENTERS

Currently, many enterprises use in their activities (practice) management by financial responsibility centers, since it has become clear that the use of such a mechanism is one of the most important subsystems for building intra-company management.

The use of such a management principle will allow the enterprise, firstly, to have a systematic and structural-logical understanding of the organization and the directions of its development. Secondly, it will allow to allocate the most "weak and strong" responsibility centers on the basis of estimated indicators in order to identify the most effective divisions of the company, influencing which can achieve the greatest effect.

In general, the financial structure of an organization is a hierarchical structure of financial responsibility centers, which act as integral segments and objects of management accounting, having their own goals, objectives and functional responsibilities aimed at achieving the goals of the company.

The main goal of forming a system of financial responsibility centers is to improve the efficiency of intra-company management based on the generalization of information about the performance of each responsibility center.

The main tasks of the management of financial responsibility centers include:

1) coordination of strategic and operational activities of units

2) creation of an effectively operating system of personnel motivation

3) distribution of areas of responsibility for the overall result

4) evaluation and control over the effectiveness of the company's business areas

5) comparison of financial results with other divisions and competing companies.

The financial structure of the company is built and formed according to the principle of responsibility of each financial unit only for the results of activities on which it can influence, i.e. these are the costs and revenues (if any) of the financial responsibility center.

As already noted, the financial structure is an ordered set of financial responsibility centers (FRCs), which can act as a separate structural unit or department, area or specific function. The central feature of the center of financial responsibility is the presence of a direct manager who is responsible for the results of the activities of the center of financial responsibility.

The financial structure depends on the specifics and scope of the enterprise, its size, legal form and form of ownership, and other factors.

2. CENTERS OF FINANCIAL RESPONSIBILITY

In modern literary sources, one can find the following classification of financial responsibility centers:

Revenue Center

The income center is a structural subdivision or a group of subdivisions of an enterprise (for example, subdivisions of marketing and sales activities), which are responsible only for the proceeds from the sale of products, goods, services and for the costs associated with their sale.

The effectiveness of this center is determined by maximizing the company's income within the resources allocated for these purposes. However, in this case the question may arise whether this service is also a cost center, since costs arise in the process of conducting marketing and sales activities. Of course, such financial responsibility centers are of a dual nature, however, for sales services, the share of income exceeds expenses, this is the principle that should be followed when determining the responsibility center.

Cost center (production activities)

The cost center is a structural unit responsible for performing a certain amount of work (production task) within the resources allocated for these purposes. As a rule, most divisions of the company belong to this type of CFD. First of all, production (shops of the main and auxiliary industries, service units). At the same time, the cost center may also have income (for example, revenue from the sale of services by the transport division to the side), but if their value is insignificant, and the provision of these services is not the main business of the company, the CFD is defined as a cost center. However, there is an opposite opinion on the principles of separation of cost and income centers. The main idea is that the sales department is engaged in the sale of finished products - this is its function, but this department does not produce these products (but only performs actions and operations for its implementation). According to this, the production department - the sphere of material production - is the center of income, because if the products are not produced, there will be no result (income, revenue) and the sales department will not be able to influence the change in this situation, since its functions include only selling products, not their production.

Both of these approaches must be considered.

A profit center is a structural subdivision or a group of subdivisions of an enterprise (for example, a manufacturing enterprise that is part of a holding company) that are responsible for the financial results of their activities.

An investment center is a structural subdivision or a group of subdivisions of an enterprise that are responsible not only for revenue and costs, but also for capital investments.

Building a financial structure in accordance with the organizational structure will allow you to evaluate the result of the work of each unit in achieving the overall goal of the company. However, do not forget that the financial structure should not completely coincide with the organizational one.

Consider the features of the formation of the structure of financial responsibility centers on the example of an industrial enterprise.

First of all, you need to get acquainted with the organizational structure of the enterprise, and then bring it into line with the financial one.

It is assumed that CFDs are responsible for all financial results, both for profits (income) and for losses (expenses). They usually have a complete budget scheme, i.e. they make up all types of basic budgets adopted in the organization. DFIs can only be responsible for certain financial indicators, for revenues and part of the costs (for example, the sales department). Cost centers are responsible only for expenses (for example, accounting, which, of course, does not earn anything, but only spends), and not just for some part of them, but for the so-called adjustable costs, the savings of which the cost center management can control and ensure (develop related activities).

Some examples of CFD and CFU

subsidiaries of holdings;

Separate subdivisions, representative offices and branches large companies;

large producing (assembly) shops of production associations;

production departments of companies with a divisional organizational structure of management;

Auxiliary shops of production associations;

· regionally and (or) technologically separate activities (businesses) of diversified companies.

· the main productions (workshops) participating in unified technological chains (repartitions), at enterprises with a sequential or continuous technological cycle;

production (assembly) shops;

sales departments and divisions. cost center:

Functional and staff services of enterprises and firms (accounting, planning and economic services, personnel departments, other divisions of plant management and central offices of firms);

main and auxiliary workshops.

When determining the financial structure of an enterprise or firm, as a rule, a list of types of businesses is first compiled, the range of products, works and services sold is studied, the most important and significant of them are determined, and the distribution of businesses by market segments is analyzed.

As a CFD, structural units can be distinguished (depending on the specifics of the organization), whose activities are separate (in terms of technology, production and marketing). Diversified commercial structures, for example, are often typical holdings and consist of several legal entities - enterprises of various profiles. The structure of such a firm usually includes one or more trading companies, tourist agency, construction company, investment company, etc. Here, each such company will appear as a CFD. At an enterprise or production association with a divisional organizational structure of management, divisions and production departments are allocated as a CFD, that is, an object of budgeting. The situation is somewhat more complicated in a large production association with complex technological chains, for example, at an instrument-making plant. Here, producing (assembly) shops can be singled out as CFAs, shipping, for example, finished products, and as CFU - auxiliary (mechanical, procurement) shops and production.

Another criterion may be the size of the structural unit. Here we are talking rather, that one or more structural divisions (one or more workshops or departments) act as the CFD or CFU.

3. PROCEDURE FOR ANALYSIS OF THE FINANCIAL STRUCTURE OF THE COMPANY AND SELECTION OF CFD, CFU AND COST

The procedure for analyzing the financial structure of the company and the allocation of the CFD, CFS and cost center

1. Drawing up a list of businesses (types economic activity, the main types of products, works and services sold):

Analysis of the legal status of structural divisions (subsidiaries of a holding or quasi-holding, branches without the right legal entity etc.);

Checking the degree of technological, production, marketing, regional and other isolation in the activities of structural divisions.

2. Determining the type of organizational structure of the company's management: divisional or linear-functional.

3. Distribution of businesses by structural divisions, identification of structural divisions that are not engaged in business (without sources of income).

4. Distribution of income, expenses and expenses by structural divisions, determination of regulated and non-regulated expenses.

5. Identification of structural units capable of being responsible for the movement Money.

6. Drawing up a list of CFD, CFU and cost centers.

In Russia, an important criterion for distinguishing a structural unit of an enterprise or firm in the Central Federal District can also be considered its ability to work independently in the market - to market its products and services, the ability to bring it to the end consumer and control the distribution network.

When deciding whether to allocate a particular unit in the CFD or in the CFU, and before compiling a list of CFR and CFU for an enterprise or firm, it is necessary to distribute the following structural divisions:

1. types of businesses;

2. income, expenses and costs.

If a structural unit cannot be responsible for income, as well as for cash receipts, but its functioning is necessary for the company as a whole and it incurs significant costs and expenses, then this is a cost center (for example, the service of the chief technologist). If a structural unit is responsible for revenue (sales department), but incurs only limited costs and cannot be responsible for all costs, then it should be attributed to the CFS. If a structural unit does not have responsibility and the ability to influence neither income nor expenses, then it should be attached to some other cost center.

To single out a structural unit as a CFD, it is necessary to match as much as possible more criteria.

CONCLUSION

The problem of building a financial structure is to determine the basis on which the CFD will be allocated. In the classification presented in the work, various options are possible, and on examples it was possible to observe how this process is implemented. However, it should be noted that there is no possibility of “checking” and controlling the correctness of the chosen method. It is clear that the results are remote in time, so it is too early to talk about them, and that is why the comments of enterprise managers do not contain this information. Consulting companies do not publish the results of the work of enterprises for which they have developed financial structures and set budgeting for the same reason - it takes time to be able to compare and identify either a positive or a negative result.

Also, as a problematic of this topic, one can name the accuracy of the manager's determination on what basis the CFD is allocated, that is, the prevalence of pluses over minuses. So, for example, if the financial structure is built according to the process principle, then it has its advantages and disadvantages. The advantages include the high transparency of the business, due to the clear localization of the main business processes, the absence of "general" costs that distort information about the financial results of the business. Among the positive aspects, we can highlight the good manageability of the business, due to high transparency, the availability of clear financial goals for the activity, as well as self-regulation and incentive mechanisms. If the financial structure is built in this way, then the general security business, due to the high independence of business units.

The disadvantages of such a system include high requirements for the qualifications of personnel, primarily top managers, since the principles of interaction between business units are not trivial and require constant monitoring. The complexity of setting up the system, developing a transfer pricing mechanism, as well as high requirements for accounting technology and its technical mechanisms, due to a larger number of accounting objects and accounting for internal transactions, are a significant drawback of the system built in a similar way.

Thus, we can draw the main conclusion: the construction of such a business system is justified by its high efficiency, but is associated with high risks associated with the complexity of construction and configuration.

LITERATURE

1 http://www.fd.ru/article/2504.html

2 National Economy / Ed. V.A. Shulgi, 2001

3 http://www.iteam.ru

4 Budgetary and target financing. Abramova E.V., Makanova I.N., Semenikhin V.V.

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The financial structure of an enterprise is a set of centers of financial responsibility (CFD).

The Financial Responsibility Center (FRC) is an element of the company's financial structure that performs business operations in accordance with its budget and has the necessary resources and authority for this.

Depending on what, from a financial point of view, this or that center brings to the enterprise and what exactly it is responsible for, five main types of CFD are distinguished:

· Investment centers.

profit centers.

· Centers of marginal income (or marginal profit).

income centers.

cost centers.

Investment centers

responsibility centers that carry out economic activities and bear costs in the implementation of investment projects of the enterprise; management is accountable for costs, revenues and investments. They have the right to govern not only working capital, but also non-current assets (fixed assets and intangible assets). This means that the centers can make investments and disinvestments. In this case, investment centers are required to provide effective use these investments, which implies responsibility for the profitability of all assets of the company.

profit centers

responsible for the amount of profit received. They, like the centers of marginal income, control both the income and expenditure sides of their activities. But we are talking about income and costs not of a separate direction, but of the entire enterprise as a whole. Accordingly, the profit center is an independent enterprise - both taken separately and as part of a multi-level structure, for example, a group of companies.

Marginal Income Centers

are responsible for the amount of marginal income received (other names are marginal profit, gross profit, net income, margin). They are created at those enterprises where there are subdivisions that are quite complex in their structure and, most importantly, activities, which are essentially business areas or areas of activity. Such divisions carry out not one production (as cost centers) and not one trade (as income centers), but complete or almost full cycle production and sale of products of a certain range. Thus, they control the income and expenses of their direction and can be responsible for the effectiveness of their activities as a whole. The measure of efficiency is no longer the income and costs of the direction each separately, but the difference between them.

Income centers

are responsible for the income they bring to the company in the course of their activities. In order to be responsible for revenue, the unit must be able to influence its level. Therefore, the center of income can be a division of the company engaged in the sale of finished products, goods and services, i.e., functionally designed to generate income.

Cost Centers

form departments that consume various resources to perform their functional duties and thus affect costs. Accordingly, they are responsible for their size.

It should be noted that if a company develops a system of budgets for the CFD, each center must have its own budget or system of budgets in accordance with the architecture of the budget system. Consolidation of the budgets of individual responsibility centers into consolidated budgets can be carried out.

Financial management is the management of the financial and economic activities of the company based on the use of modern methods. His role in the organization is multifaceted and very important at the present stage.

The main tasks of financial management are:

1) financial and business planning;

2) investment planning;

3) analysis of the effectiveness of mergers and acquisitions of organizations, commercial banks, insurance companies;

4) development of accounting policies for accounting, tax and management accounting;

5) coordination of budget planning and control;

6) cash and working capital management;

7) financial risk management;

8) asset management - formation, control and analysis of compliance with the standards for the turnover of current (accounts receivable, stocks, accounts payable) and long-term (fixed assets, intangible assets, long-term financial investments) assets;

9) cost and profit management:

– coordination of the processes of development, approval and adjustment of standards for cost items;

- cost accounting and costing;

– preparation of segment reporting;

– development of measures to optimize the use of resources;

– analysis of pricing and assortment portfolio management;

10) provision of financial resources:

– management of relationships with potential sources of financing, external investors;

– identification of funding needs;

– conducting transactions to attract financial resources;

11) financial forecasting;

12) internal audit;

13) tax planning and accounting;

14) controlling;

15) promotion of economic way of thinking:

– development of training programs for company employees in the process of making effective management decisions;

– creation of models and standards for decision making.

The solution of these problems is assigned to various specialists, depending on the organizational structure, the size of the organization, and the tasks facing it. The functions of a financial manager can be performed by the financial directorate, accounting, financial director, commercial director, general director, and outside specialists. In order for the structure of the financial and economic service (FES) to be optimal, it is recommended to discuss with the company's management the tasks of the financial service arising from strategic goals, the possibility of delegating the powers necessary to implement these tasks, the terms of reference of employees, as well as the system for evaluating the activities of the financial unit and its head ..

In many ways, the role of a financial director or financial manager in a company is predetermined by the type and structure of the business, as well as the stage of development of the company. Depending on this identify the three most common roles of CFOs today:

1) the general director independently makes all decisions; financial director performs the tasks of the chief accountant, accountant - small business;

2) CFO is one of the key figures. The value and position of the company in the market are already formed not only from effective sales and production, but also from financial management - medium business;

3) the head of the company is a general director who is responsible for the strategy of the enterprise, sales, marketing. However, not a single dollar can be spent without the consent of the CFO - big business.

When creating a financial block, you will have to take into account the specifics of the business, the traditions that have developed in the company, for example, the performance of related functions by employees, the features of the organizational structure. Of course, this somewhat complicates the process of adaptation of a novice financial director, but, for example, without knowing the specifics of the company's business, you will not be able to effectively cope even with the simple tasks facing FES.

The main task of the financial director is to organize the work of the departments he leads in the following main areas:

- controlling;

- financial planning;

- accounting and tax accounting;

- cash flow management (treasury function);

- Management Accounting;

- financial risk management.

Controlling can be characterized as a system for setting goals, forecasting and planning, establishing mechanisms and tools for achieving the set goals, as well as checking how successfully they have been completed. This work, as a rule, is performed by the financial controlling department, or the planning and economic department. When determining the functions of the employees of this unit, it should be remembered that the controlling system rests on "four pillars": accounting, analysis, planning and organization of business processes, which are the duties of the financial director.

To competence treasury companies usually include the current management of cash flows, the determination of the priority of payments, the procedure for mutual settlements, currency exchange operations, as well as the control of payments and balances on the accounts of companies within the perimeter of the group, if we are talking about a holding company. Most often, the treasury is allocated to a separate division in large and medium-sized companies; in small firms, the corresponding functions are performed by one or more employees (for example, a bank manager).

In order to attract funding and choose the most profitable way to allocate temporarily free funds within the framework of the FES, finance department (credit department). However, in many companies, the function of raising and allocating funds is often also the responsibility of the treasury. At the same time, the activities of these divisions are not limited to choosing a reliable bank and obtaining loans on terms acceptable to the company. The tasks of the financial director also include the organization of interaction in these areas of other departments of the enterprise. It is possible to achieve effective interaction if the procedure for such interaction in terms of collecting and providing the necessary information is regulated.

The main tasks facing the financial director (manager) are determined under the influence of a number of factors: the competitive environment, the need for constant technological improvement, the need for capital investments, changing tax laws, the global environment, political instability, information trends, changes in interest rates and the situation in the stock market. market. Forming an appropriate financial policy, the financial manager must develop an algorithm for achieving financial success. Maximizing the company's funds through the correct choice of financing methods, pursuing an appropriate dividend policy and minimizing risks in obtaining net profit is the task of current and future activities in the field of financial management.

Financial management is the process of developing and implementing management decisions in order to influence finance, money circulation, and financial relations. Managing impact on finances is necessary to achieve financial stability, strategic and tactical goals of the enterprise.

Thus, achieving and maintaining financial stability is the main task of financial management. Its solution assumes that the financial position of the enterprise is characterized by:

- high solvency;

– balance sheet liquidity;

– liquidity of assets;

- creditworthiness;

- profitability.

It is possible to achieve a combination of these characteristics if a number of important balance proportions are observed:

1) the most liquid assets should cover the most urgent liabilities (accounts payable) or exceed them;

2) marketable assets (accounts receivable, funds on deposits) must cover short-term liabilities (short-term loans) or exceed them;

3) slow-moving assets (stocks of finished products, raw materials or materials) must cover long-term liabilities or exceed them;

4) hard-to-sell assets (buildings, land) must be covered by permanent liabilities (own funds) and not exceed them.

Financial management should provide for the possibility of purposeful improvement of individual functional blocks, elements of the system and any combination of them.

In the financial structure of the company, in order to optimize cash flows, depending on the specifics and structure of the business, as well as on the functions performed by departments, responsibility centers (RCs) can be allocated. Responsibility Center is an element of the company's financial structure that performs business operations in accordance with its budget and has the necessary resources for this. The budget of the central heating center includes only items of expenses and incomes controlled by its head. As a CO, as a rule, a company as a whole, its individual structural divisions (workshops, departments, employees) or their groups are singled out.

Distinguish five main types of responsibility centers(Table 1.1):

1) standard cost center (TsnZ)- its head is responsible for compliance with the cost standards for the production of products, works or services (production units, procurement department);

2) management cost center (CuZ) - its head is responsible for compliance with the level of expenditure planned in the budget (for example, accounting, administrative and economic department (AHO), security). As a rule, the TsUZ includes units with the activities of which are associated indirect costs enterprises;

3) revenue center (CD) - usually divisions that sell products, works and services are allocated as income centers. The head of the revenue center is responsible for the size of the company's revenue;

4) profit center (CPU)- its head has the authority to make management decisions on which the profit of the company depends. Since in this case control is exercised over income and expenses, then, as a rule, subdivisions that implement one or more projects are allocated to the CPU;

5) investment center (CI)– in addition to the powers and responsibilities of the head of the PI, the head of the CI is also responsible for the effectiveness of investments.

Tab. 1.1 Classification of responsibility centers

The list of tasks of the financial director (manager) expands significantly if the company plans to enter the capital markets. He becomes the coordinator of the audit process according to international standards, takes part in mergers and acquisitions of other companies, works with investors and investment banks.

Factors that determine the composition of the duties of the financial director are:

- areas of activity and priorities available to the enterprise (tax planning, placement of free cash, cash flow management, increasing the capitalization of the business);

– the degree of involvement of the CFO in decision-making relating to related units, for example, the degree of participation in pricing;

- the management style of the financial director and a look at what issues require his direct participation.

The CFO or manager's job responsibilities will also be influenced by the company's ability to attract the necessary finance professionals, for example, a group of experts may be involved to manage financial risks. If a company cannot afford to hire a specialist who will generate reports on international system financial statements (IFRS), but there is an urgent need for such statements, then it is likely that the CFO will have to prepare it himself.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE

DONBAS STATE MACHINE-BUILDING ACADEMY

In the discipline "Budgetary activities of business entities"

On the topic: "The financial structure of the enterprise and its formation"

Completed: st-ka gr. F05-2

Kosyachenko V.A.

Checked by: Mikhailichenko N.N.

Kramatorsk, 2010

INTRODUCTION

CONCLUSION

INTRODUCTION

One of the differences between budgeting as a management technology is the ability to see the financial condition of an enterprise or firm in the context of its individual types of business. As a matter of fact, the choice of financial structure is a choice of object of budgeting. Subsequently, it depends on him: what types of budgets will be used; what formats and technologies of budgeting should be used. With all the variety of classification options, three main groups of structural units can be distinguished - budgeting objects.

The financial structure is a hierarchical system of financial responsibility centers. It determines the procedure for the formation of financial results and the distribution of responsibility for achieving the overall result of the company. Financial structuring allows you to maintain an internal accounting policy, track the movement of resources within the company and evaluate the effectiveness of the business as a whole and its components. In other words, the presence of a financial structure allows the company's management to see who is responsible for what, allows you to evaluate, control and coordinate the activities of departments, helps to develop an effective system of employee motivation.