Cash management (CM) of an enterprise includes calculating the circulation time of funds, the financial cycle, analysis and forecasting of cash flows, the optimal amount of funds for the enterprise, drawing up a cash budget, etc. The need for free cash for an enterprise is determined by the following reasons:

1. incoming and outgoing cash flows do not coincide in time

2. presence of unforeseen circumstances and expenses

3. there is a possibility of a profitable investment. On the other hand, uninvested funds do not work, therefore, there is lost profit, so the amount of funds of the enterprise must be optimal, taking into account the fact that:

Current solvency must be maintained

You should strive to get additional profit from investing funds

Cash flow analysis is carried out using Form No. 4 or indirect method using Form No. 1 and Form No. 2 of the enterprise’s financial statements.

Cash forecasting

Necessary when developing business plans, justifying investment projects, loan needs, etc.

Forecasting is carried out for a certain period (year, quarter, etc.) broken down into sub-periods, in the following sequence:

1) Forecasting cash receipts - receipts from the sale of products - goods should be taken into account. It can be on an advance payment or deferred payment basis, so it is necessary to calculate what part of the revenue will be received in the same period and what part in the next period. In addition, the sources of funds should be taken into account.

2) Planning of cash outflow: you should take into account the directions of outflow: repayment of accounts payable, suppliers, salaries, taxes, interest on loans, capital investments, etc. The deferment of these payments should be taken into account.

3) Calculation of net cash flow, i.e. receipts - payments.

4) Determining the need for credit and other additional sources of financing. If the net cash flow is negative, then there is a need for additional sources.

There are special cash management models that allow you to determine the optimal amount of funds, the frequency of their replenishment and investments.

Baumon model:

The enterprise begins to operate with the maximum amount of funds that is appropriate for it, constantly spends it, and invests the proceeds in short-term securities. When the stock of DS becomes minimal, they are replaced and securities are replenished to the value Q, etc.

where V is the predicted need for DS

C - average amount of expenses for 1 transaction with securities

r - interest income on investments in securities

1) Qavg. = Q / 2, where Qav is the average amount of money in the account

2) K = V / Q, where K is the total number of transactions with securities

3) Total costs from implementing such a DS management policy

And DS = C * K + r * Q / 2, where

C * K - costs of transactions with securities

r * Q / 2 - lost profit (money doesn't work)

The model can only be used by enterprises with stable projected cash income.

Miller–Ora model.

The enterprise determines:

1) the maximum allowable size of DS on accounts

2) the minimum allowable size of DS on accounts

3) optimal DS size (return point)

The amount of money in the accounts changes chaotically until it reaches the upper or lower limit. At this moment, the transformation or sale of securities (CS) occurs.

11) CURRENT ASSETS MANAGEMENT POLICY

Part of the overall financial strategy of the enterprise, which consists in the formation of current assets, rationalization of turnover and optimization of the structure of sources of their financing.

The development of a policy for managing current assets of an enterprise provides for:

1. Analysis of current assets in the previous period. The purpose of this analysis is to identify trends in the dynamics of their total volume and composition, as well as to study the effectiveness of their use. The analysis process uses an extensive system of indicators for their assessment, primarily indicators of their liquidity and turnover. The analysis ends with a study of the main factors that determined the dynamics of the volume and composition of current assets, as well as indicators of their effectiveness.

2. Optimization of the composition of current assets. This optimization process involves two main stages.

At the first stage, the enterprise calculates the standards for certain types of current assets, primarily funds advanced to inventory inventories, diverted to accounts receivable and stored in the form of cash balances. Taking into account the standardized volume of individual types of current assets, the total need for them for the coming period is determined.

At the second stage, the structure of current assets is optimized from the standpoint of liquidity to ensure the constant solvency of the enterprise (see “liquid assets”). During this optimization stage, taking into account the volume and schedule of the enterprise's payment turnover, the minimum amount of current assets in the form of ready-made means of payment must be determined.

3. Ensuring acceleration of turnover of current assets. Accelerating the turnover of current assets allows an enterprise to significantly reduce the need for them, since there is an inverse relationship between the speed of turnover of these assets and their size. The amount of current assets released in the process of accelerating their turnover can be determined by the following formula:

Where Eoa is the saving of the amount of current assets in the process of accelerating their turnover;

POoaf - period of turnover of current assets in the pre-planned period, in days;

POoap - planned period of turnover of current assets, in days;

Оо - planned one-day volume of product sales.

4. Ensuring increased profitability of current assets. Like any type of asset, current assets must generate a certain profit when used in the production and marketing activities of the enterprise. At the same time, certain types of current assets are capable of generating direct income for the enterprise in the process of financial activities in the form of interest and dividends (short-term financial investments).

Therefore, an integral part of the policy being developed is to ensure the timely use of the temporarily free balance of monetary assets to form an effective portfolio of short-term financial investments.

5. Ensuring minimization of losses of current assets in the process of their use. All types of current assets are to varying degrees subject to the risk of loss. Thus, monetary assets are significantly exposed to the risk of inflationary losses; short-term financial investments - the risk of losing part of the income due to unfavorable financial market conditions, as well as the risk of losses from inflation; accounts receivable - the risk of non-repayment or untimely return, as well as the risk of inflation; inventories - losses from natural loss, etc. Therefore, the policy for managing current assets should be aimed at minimizing the risk of their losses, especially under the influence of inflationary factors.

6. Formation of principles for financing certain types of current assets. Based on the general principles of asset financing that determine the formation of the capital structure and the cost of capital, the principles of financing certain types and components of current assets must be specified. Depending on the financial mentality of managers, the formed principles can determine a wide range of approaches to financing current assets - from extremely conservative to extremely aggressive.

7. Formation of an optimal structure of sources of financing of current assets. In accordance with previously defined principles of financing, in the process of developing a policy for managing current assets, approaches to choosing a specific structure of sources of financing their growth are formed, taking into account the assessment of the cost of attracting certain types of capital.

The goals and nature of the use of certain types of current assets have significant distinctive features. Therefore, at enterprises with a large volume of current assets used, an independent policy for managing individual types of assets is being developed (see “inventory management policy”; “accounts receivable management policy”; “cash asset management policy”, “current asset financing policy”).

Introduction

A firm's cash flow is a continuous process. For each direction of use of funds there must be a corresponding source. Broadly speaking, a firm's assets represent net uses of cash, while liabilities and equity are net sources. For a running enterprise, there really is no starting point and ending point. The final product is the total cost of raw materials, fixed assets and labor, ultimately paid for in cash. The products are then sold either for cash or on credit. Credit sales generate accounts receivable that are eventually collected and converted into cash. If the selling price of a product exceeds all expenses (including depreciation of assets) for a certain period, then a profit will be made for this period; There is no mudflow - a loss. Cash levels fluctuate over time depending on production schedules, sales volumes, accounts receivable collections, capital expenditures, and financing. On the other hand, raw materials inventories, work in progress, inventories; finished goods, accounts receivable and trade credit payable fluctuate depending on sales, production schedules and policies regarding key accounts receivable, inventory and trade credit outstanding.

The cash flow statement is a method by which we examine the net change in funds between two points in time. These points correspond to the starting and ending dates of the financial report, no matter what period the study relates to - quarter, year or five years. The statement of sources and uses of cash describes net rather than gross changes in financial position at various dates. Total changes are all changes that occur between two reporting dates, while net changes are defined as the result of total changes.

The purpose of this work is to study the methods of managing an enterprise's funds using cash flow analysis, as well as to develop ways to optimize the enterprise's funds and improve ways to manage them.

CHAPTER I . CONTENT AND METHODS OF ENTERPRISE MONEY MANAGEMENT

1.1. Goals and organization of enterprise cash flow management

Cash flow management is one of the most important activities of a financial manager. It includes calculating the time of circulation of funds (financial cycle), analyzing cash flow, forecasting it, determining the optimal level of funds, drawing up cash budgets, etc. The importance of this type of asset as money, according to John Keynes, is determined by three main reasons:

Routine cash is used to carry out current operations, since there is always a time lag between incoming and outgoing cash flows, the company is forced to constantly keep available funds in the current account;

Precautionary - the activity of the enterprise is not strictly predetermined, so funds are needed to make unexpected payments;

Speculative - funds are needed for speculative reasons, since there is always a non-zero probability that an unexpected profitable investment opportunity will arise.

At the same time, the death of financial resources in the form of cash is associated with certain losses - with some degree of convention, their value can be estimated by the amount of lost profits from participation in any available investment project. Therefore, any enterprise must take into account two mutually exclusive circumstances: maintaining current solvency and obtaining additional profit from investing free cash. Thus, one of the main tasks of managing cash resources is to optimize their average current balance.

The availability of funds at an enterprise is often associated with whether its activities are profitable or not. However, such a connection is not always obvious. The events of recent years, when the problem of mutual non-payments has sharply worsened, call into question the absolute inviolability of the direct connection between these indicators. It turns out that an enterprise can be profitable according to accounting data and at the same time experience significant difficulties in working capital, which ultimately can cause not only socio-economic tension in relationships with counterparties, financial authorities, employees, but ultimately (still theoretically) lead to bankruptcy. Let's look at a simple example.

The company purchases raw materials daily on a cash payment basis in the amount of daily requirements. The production cycle takes one day. Money is credited to the current account for products sold with a one-day lag. The cost of producing a unit of production is 10 thousand rubles, the selling price is 11 thousand rubles. The products are in demand, so the company is increasing its production volume. The dynamics of the enterprise's performance results will be as follows (Table 1.1).

Table 1.1

Dynamics of profit and cash (thousand rubles)

From the table above it is clear that the enterprise is profitable, but by the end of the fourth day it does not have funds in its current account to continue production activities.

Let's look at the basic principles of money management.

1.2. Models and techniques for targeted regulation of cash flows

Financial cycle calculation

The financial cycle, or cash circulation cycle, is the time during which funds are withdrawn from circulation. The main stages of cash circulation during production activities are presented in Fig. 1.1.

Rice. 1.1. Stages of cash circulation

The logic of the presented scheme is as follows. The operating cycle characterizes the total time during which financial resources are stored in inventories and accounts receivable. Since the company pays supplier bills with a time lag, the time during which funds are diverted from circulation, i.e., the financial cycle, is less than the average time of circulation of accounts payable. The reduction in operating and financial cycles over time is considered a positive trend. If a reduction in the operating cycle can be done by accelerating the production process and accounts receivable turnover, then the financial cycle can be shortened both due to these factors and due to some non-critical slowdown in accounts payable turnover.

Thus, the duration of the financial cycle (FCC) in days of turnover is calculated using the formula

PFC = POC – VOK = WHO + WOD - VOK;

POC - duration of the operating cycle;

VOK - time of circulation of accounts payable;

WHO - time of circulation of industrial stocks;

VOD - time of circulation of receivables;

T is the length of the period for which the average indicators are calculated (usually a year, i.e. T=365).

Information support for calculations - financial statements. The calculation can be performed in two ways: a) using all data on receivables and payables; b) according to data on receivables and payables directly related to the production process.

The goal of cash management is to invest excess cash income to generate profit, but at the same time have the necessary amount to meet payment obligations and at the same time provide insurance against unforeseen situations. The more predictable a firm's cash flows, the lesser the need for insurance. Cash management begins from the moment the buyer (debtor) issues a check for payment for products and ends with payments to creditors, personnel, budgets and other persons. At the same time, cash management is closely related to the management of accounts payable, because the company's managers regulate the timing of its payment.

It is necessary to distinguish between “inflows” and “outflows” of funds for core (operating) activities, investment and financial activities.

Activities	Cash inflows	Cash outflows
1. Main activity	Revenue from sales in the current period; repayment of accounts receivable; advances received from customers; proceeds from the sale of products obtained through barter, etc.	Payments on invoices of suppliers and contractors; salary payment; contributions to the budget and extra-budgetary funds; payment of interest on the loan; social contributions sphere.
2. Investment activities	Sale of fixed assets and intangible assets; dividends, interest from long-term financial investments; return on investment.	Acquisition of fixed assets, intangible assets; capital investments (direct investments in construction), long-term financial investments.
3. Financial activities	Short-term loans and borrowings; long-term loans and borrowings; proceeds from the issue of shares; special-purpose financing.	Repayment of short-term loans, repayment of loans; repayment of long-term loans, repayment of loans; dividend payment; repayment of bills.

To implement the function of insuring the current production process, liquid securities are more suitable. (In Russia - government bonds.) Liquid securities bring the company a certain level of income. The combination of cash and marketable securities is called cash or liquid assets. When cash receipts and cash payments are consistent over a period of time, a firm may hold relatively small cash reserves. But if the risk of mismatch is significant, then investments in short-term liquid securities are necessary. Of course, the amount of cash required increases if part of the transactions are paid in cash, and decreases if the firm can quickly obtain credit on the desired terms. The higher the interest rate, the greater the firm's incentive to reduce cash holdings.

From the point of view of the cash flow of an enterprise, working capital is represented at a specific point in time by the value advanced to accounts receivable, inventories and costs in work in progress and temporarily free cash balances in the accounts and cash register of the enterprise. The key categories associated with cash management are cash balance and cash flow of the enterprise. Cash balance - These are temporarily free funds in the accounts and cash register of the enterprise; the most liquid category of assets, which ensures the current solvency of the enterprise, and therefore the freedom to choose actions. Cash turnover refers to the difference between all funds received and paid by an enterprise for a certain period of time.

Cash management policy is part of the overall policy for managing current assets of an enterprise, which consists in optimizing the size of their balance in order to ensure constant

clear solvency and efficient use during storage.

The efficiency of using an enterprise's funds is assessed using the following indicators:

1. Coefficient of participation of cash in current assets
(Ku) characterizes the share of current assets that are in absolute
but in liquid form, and is calculated according to the formula

K, = YES avg: OA avg, (15.15)

where YES av - the average balance of monetary assets in a given period; OA avg - the average amount of current assets in a given period.

2. Average period of turnover of monetary assets (PO^), using
used to determine the role of monetary assets in the total duration
operating cycle, calculated by the formula

PO yes = YES Wed:U, (15.16)

Where V- one-day volume of products sold in a given period.

3. Level of diversion of the free balance of monetary assets
in short-term financial investments (U kfv), showing the ratio
wearing between short-term invested and uninvested
by other means, is determined by the formula

U kfv = Kfv:YES, (15.17)

where KFV is the average amount of short-term financial investments in a given period.

4. Profitability ratio of short-term financial
investments (/? kfv) shows the profitability per unit of short-term
investments for the period and is calculated using the formula

D kfv = P: KVF, (15.18)

where P is the amount of profit received from short-term investment in a given period.

In cash are called non-profitable assets that, when stored in a current account and in cash, lose part of their value. The following types of monetary assets are distinguished:

1. Operating (or transactional) balance of monetary assets (DA 0), maintained to ensure current payments related to the economic activities of the enterprise. To calculate the need for a given balance of monetary assets, the formula is used

YES 0 = BEFORE PL: K I,(15.19)

where DO PL is the planned volume of cash turnover for the operating activities of the enterprise;

K t- turnover ratio of monetary assets in the planning period.

2. Reserve balance of monetary assets, formed for the purpose
insurance against the risk of late receipt of funds due to
with deterioration of market conditions or slowdown in payment
turnover to maintain the required level of solvency
for current obligations of the enterprise. Need for backup
the balance of monetary assets (D A r) is determined based on the amount of the transaction
balance of monetary assets and unevenness coefficient
(variations) in cash receipts in certain periods before
next year (KB) according to the formula

YES p = YES about xCV. (15.20)

3. Investment (or speculative) cash balance
means provides the opportunity to implement effective short
urgent financial investments in favorable conditions
market. Need V this type of monetary assets (YES AND) plan
is based on the financial capabilities of the enterprise after formation
of all other types of current and non-current assets. Size
the investment balance of monetary assets is not limited, according to
since its value does not decrease during storage. Criteria
the formation of this part of the assets is a higher level
profitability of short-term financial investments relative to the Ren
return on operating assets.

4. The compensating balance of monetary assets is formed according to
requirements of the bank providing settlement and cash services
and enterprise lending. Need for compensation balance
ke monetary assets (YES K) is planned in the amount determined with
agreement between the company and the bank.

A clear distinction between monetary assets by these types is in practice
economic activity of the enterprise is problematic, because in connection
with the absolute liquidity of this type of working capital, they are
seamlessly transform into each other. The total size of the average balance
The value of monetary assets (DA) using this method is determined by the formula
YES = YES O + YES R + YES I + YES K. (15.21)

Since the reserve and investment balances of an enterprise's monetary assets are interchangeable, the need for them in the absence of financial resources can be reduced.

The following models for optimizing the average balance of an enterprise's cash assets are based on achieving a compromise between the costs of lost profits from maintaining a significant balance of funds in the account and the costs of production scale associated with a small

a significant balance (or lack) of cash and the need to sell securities.

The Baumol model is a classic means of determining the optimal cash balance from the point of view of these types of costs. It is applicable to enterprises with a stable cash flow, storing excess cash in the form of short-term financial investments and allowing cash assets to be reduced to zero.

The more often monetary assets are replenished through the sale of short-term investments or the receipt of short-term bank loans, the smaller the average and maximum balance of the enterprise's monetary assets will be, but the greater the costs of replenishing monetary assets will be. The less often monetary assets are replenished, the lower the amount of expenses for servicing one operation of replenishing funds (P o) and the greater the average balance of monetary assets. However, cash balances in accounts and on hand do not bring income to the enterprise, and their growth means the enterprise loses alternative income in the form of lost profits from financial investments. The size of these losses (P d) is equal to the product of the average cash balance for the period and the average interest rate on short-term investments.

The algorithm for calculating the optimal size of the average balance of an enterprise's monetary assets (DA 0PT) has the following form:

Thus, the average cash balance is half the optimal (DA 0PT: 2), and the total number of transactions for converting securities into cash (K) is determined by

K = TO: YES OPT. (15.23)

The total expenses (OR) for the implementation of such a cash management policy are determined by the formula

R 0 xK + P d xDA 0PT:2. (15.24)

The first term in this formula represents the direct costs of withdrawing (replenishing) the account, the second is the lost profit from storing funds in the account.

In business practice, stability of cash expenses is rare. As a rule, the cash balance changes randomly, and significant fluctuations are possible.

The Miller-Orr model answers the question of how a company should manage its cash reserves if it is impossible to predict the daily outflow and inflow of cash. When constructing the model, the Bernoulli process is used - a stochastic process in which the receipt and expenditure of money from period to period are independent random events (Fig. 15.6).

The account balance changes chaotically until it reaches the upper limit. When the cash asset balance reaches its maximum, the cash is invested in short-term securities. When the cash balance falls below the minimum level, it is replenished through the sale of securities or a short-term bank loan. The value of the average balance of cash assets is not set in the middle of the minimum and maximum amounts of the cash balance, but one-third above its minimum value or two-thirds below the maximum value, which allows reducing the level of losses of alternative income.

When deciding on the range of variation (the difference between the upper and lower limits), it is recommended to adhere to the following

policies: if the daily cash flow is large or the costs associated with the purchase and sale of securities are significant, then the enterprise should increase the range of variation, and vice versa. It is also recommended to reduce the range of variation if there is an opportunity to generate income due to the high interest rate on securities.

The Miller-Orr model provides for the formation of an insurance reserve of funds, the unevenness of their receipts and expenditures, and, consequently, the balance of monetary assets. The lower limit of the cash balance is taken at the level of the safety stock, and the upper limit - at the level of three times the size of the safety stock.

The mathematical algorithm for calculating the range of variation between the upper and lower limits of monetary assets (MA) has the following form:

the maximum (DL max/) and average (DL SR/) balances of monetary assets are determined by the formulas:

YES max = YES min + RV; (15.26)

YES av = YES MIN + RV: 3. (15.27)

Stone's optimal cash balance model complicated the Miller-Orr model by introducing cash flows expected in the near future. In accordance with this model, the company’s actions to manage the cash balance at the current time are determined by the forecast for the near future. Consequently, reaching the cash asset balance ceiling does not trigger an immediate transfer of cash into securities if significant cash outflows are expected in the coming days. This minimizes the number of conversion operations and, consequently, reduces costs. This model can take into account seasonal and cyclical fluctuations in production volumes.

Simulation modeling using the Monte Carlo method is based on statistical methods, taking into account the probabilistic distribution of net cash flows when determining the optimal balance of monetary assets, the value of which is established taking into account the acceptable probability of a cash deficit.

A modern method of regulating the average balance of monetary assets is to adjust the inflow and outflow of funds (postponement of the deadline for individual payments by prior agreement with counterparties). This adjustment is carried out in the following steps.

At the first stage, based on the plan (budget) for the receipt and expenditure of assets in the upcoming quarter, the scope of variation in the balance of the enterprise’s monetary assets is studied in the context of individual decades. This range of fluctuations is determined in relation to the minimum and average balances of monetary assets in the coming period.

At the second stage, ten-day terms for spending monetary assets are regulated (in connection with their receipts), which allows minimizing the balance of monetary assets within each month and for the quarter as a whole. The criterion for the optimality of the planned timing of cash payments is the minimum level of the mean square (standard) deviation of the ten-day values ​​of the balance of the enterprise's monetary assets from the average.

At the third stage, the balances of cash assets obtained as a result of cash flow regulation are optimized taking into account the envisaged size of the insurance balance of these assets. First, the maximum and minimum balances of monetary assets are determined, taking into account the new range of variation and the size of their safety stock, and then their average balance.

The amount of monetary assets released during the ten-day adjustment of the flow of payments is reinvested in short-term financial instruments or in other types of assets.

There are other forms of operational regulation of the average balance of monetary assets, ensuring both an increase and a decrease in its size. These main forms include:

■ use of float. Float is the amount of monetary assets of an enterprise associated with payment documents already issued to it (orders, checks, letters of credit, etc.), but not yet collected by their recipient. Float for a specific payment document can be considered as the period of time between its statement for a specific payment and its actual payment. By maximizing the float (the period of passage of issued payment documents before they are paid), an enterprise can accordingly increase the amount of the average balance of its monetary assets without additional investment of financial assets;

■ reduction of cash payments. Cash
calculations increase the balance of the enterprise's monetary assets
and reduce the period of use of monetary assets by the period of passing
recording suppliers' payment documents;

■ opening a credit line with a bank, providing operational
new receipt of short-term credit if necessary urgently
th replenishment of the balance of monetary assets;

■ use of partial prepayment of supplied products
tion, if this does not lead to a decrease in the volume of its implementation. Such
practice is usually used when selling products that have
high demand.

Acceleration of cash receipts can be carried out by the following methods:

■ using lockboxes (incoming checks are sent
to a special bank branch at the buyer’s location. This
allows you to reduce the time required to receive checks, deposit
ning and making payments through the banking network on 1-
4 days);

■ through the settlement system in the order of scheduled payments after
due acceptance (on pre-agreed days the
funds are transferred to the supplier's account);

■ use of funds en route, i.e. differences between
the balance of funds reflected in the company's current account
and passing through bank documents. For example, when using
introduction of a check form of settlements with suppliers, the receiving enterprise
It is possible to defer payment for a certain number of days.
By multiplying this number of days by the transaction amount, we determine the amount of funds
on the way to payment. The amount of funds on the way to the
step. The difference between them is the balance of funds in transit -
this is either a temporary surplus of funds due to payments, or a temporary
shortage of funds from revenues. It is advisable to plan the payment
life and debt collection in such a way that it is possible
the ability to use temporary surplus funds.

The monetary asset management policy should provide for the profitable use of the temporarily free balance of monetary assets. For this purpose, a system of measures is being developed to minimize losses of alternative income and anti-inflationary protection in the process of storing funds. The main such events include:

■ agreement with the bank providing settlement services
establishment of the enterprise, conditions for the current storage of the balance of cash ac-

assets with payment of deposit interest on the average amount of this balance (for example, by opening a checking account in a bank);

■ use of short-term monetary investment instruments
formation (primarily deposits in banks) for times
storage of insurance and investment cash balances
Tivs;

■ use of highly profitable stock market instruments
for investing reserves and free balance of monetary assets
(government short-term bonds; short-term deposit
bank certificates, etc.) provided there is sufficient liquidity
the effectiveness of these instruments in the financial market.

Questions for self-control

1. What is the relationship between working capital, current assets and equipment?
company capital?

2. How does the provision of working capital affect the degree of liquidity?
visibility of the enterprise and return on capital?

3. Name the principles of formation of current assets.

4. What is the operating cycle of an enterprise and its paths
optimization?

5. What is the turnover of current assets and what is its impact on
organization finances?

6. What is the essence of the economic order quantity (EOQ) model?
what are its advantages and disadvantages?

7. What is the essence and what are the types of receivables
enterprises?

8. What factors determine the level of accounts receivable?

9. What indicators characterize the state of accounts receivable
ness?

11. Describe the procedure for determining rational price discounts
products sold.

12. What types of monetary assets of an enterprise and factors determining
their level, do you know?

13. Specify methods for operational regulation of the balance of cash accounts
Tivov.

So, from the above it is clear that cash management is the basis of effective financial management. Recently, concepts such as “cash flow” and “cash flow” have become particularly important. Cash flow refers to all gross cash receipts and payments of an enterprise. Cash management is carried out using cash flow forecasting, i.e. receipts (inflows) and use (outflows) of funds. The movement of money is the fundamental principle, as a result of the functioning of which financial relations, cash funds and cash flows appear.

Cash flow (English Cash Flow - cash flow) is a parameter reflecting the result of the corporation's cash flow for a certain period of time. It is an element of the management accounting system that provides information for making informed management decisions within the company. It is associated with a specific period of time and represents the difference between all funds received and paid by the enterprise for this period of time.

Cash management brings all this together and involves analyzing these flows, accounting for cash flows, and developing a cash flow plan.

There are a number of opinions expressed by modern economists regarding the issue of cash management for enterprises: Stone D. and Hitching K., professors at the London Business School, write that “the movement of a company’s money can be compared to the circulation of blood in the body.” And in this regard, about the tasks of managers - “When engaged in long-term planning, a manager must be confident in the financial support for achieving the chosen goals.” Stone D., Hitching K. “Accounting and financial analysis. 1998, p. 174-175 That is, determining the amount of money needed by the company and the proportion of distribution of this money among assets is the most important element of the financial activity of an economic entity. Team of authors, ed. prof. E.S. Stoyanova calls the calculation of the minimum required amount of monetary assets E.S. Stoyanova the most important aspect of cash management. “Financial management: theory and practice” - 3rd ed., revised. and additional - M.: Publishing House "Perspective", 1998. - 656 pp. This calculation is proposed to be based on planning cash flow for current business operations, on the volume of expenditure of monetary assets for these operations in the coming period. Moreover, when calculating the minimum, maximum and average cash balances, it is recommended to use the Baumol and Miller-Orr models. V.V. Kovalev calls the main elements in cash management the calculation of the circulation time of funds (financial cycle), analysis of cash flow, its forecasting, determination of the optimal level of funds (Baumol’s model), as well as drawing up cash budgets Kovalev V.V. “Financial analysis: capital management. Choice of investments. Analysis of reporting.” - 2nd ed., revised. and additional - M.: Finance and Statistics, 1997. - 512 pp..

Let's consider the main essential characteristics of an enterprise's cash flow as an object of management (Fig. 1):

Rice. 1.

Cash flow as an object of financial management of the economic activities of an enterprise. The process of cash flow reflects the monetary relations of the enterprise, which are included in the scope of its financial activities. This is the connection between the cash flows of an enterprise and the scope of its financial activities. Enterprise finance is a system of economic relations associated with the formation, distribution and use of funds in the process of carrying out economic activities. The cash flow of an enterprise reflects its monetary relations, both external (relations with budgets and extra-budgetary funds, banks, etc.) and internal (relations with subsidiaries, structural divisions, etc.) (Fig. 2):

Rice. 2.

• - Cash flow of an enterprise, as a process directly related to the functioning of money and the country’s monetary system. The form of organization of monetary circulation in a particular country, determined by its monetary system, has a significant impact on the nature of cash flows of individual business entities.
• - Cash flow of an enterprise as a process associated with the formation, distribution and use of capital. The basis of an enterprise's cash flow is the movement of monetary assets owned by it as property, that is, equity capital in cash. In this capacity, equity capital in its most general form is characterized as a previously accumulated stock of money and its substitutes at a certain point in time.
• - Cash flow of an enterprise as a process reflecting the use of various forms of credit by the enterprise. The movement of funds of an enterprise is inextricably linked with the movement of the loan capital used by it, attracted to carry out economic activities in the form of a loan.
• - Cash flow of an enterprise as a process characterizing the turnover and transformation of certain types of its assets. The monetary assets used by the enterprise are in constant motion, which is accompanied by constant changes in their types and forms. The process of such constant movement and transformation, characterized in economic theory by the term “asset turnover,” is carried out in the form of certain repeating cycles. The asset turnover cycle is understood as the period of complete completion of the circulation of their individual functional groups and types, as a result of which they return to their original form - monetary assets (Fig. 3).

Rice. 3.

• - Cash flow of an enterprise as a process that ensures the generation of economic effect. Wherever an enterprise's funds (its capital in monetary form) are used - in its operating or investment activities, they are always potentially capable of generating a positive economic effect, provided that they are used rationally. The main form of economic effect generated by an enterprise’s cash flows is “net cash flow” (the difference between the total volumes of positive and negative cash flow). The level of net cash flow characterizes the ability of capital in monetary form to provide varying degrees of self-increase in its value.
• - Cash flow of an enterprise as a process reflecting the forms and volumes of the enterprise’s functioning in the commodity and financial markets
• - Cash flow of an enterprise as a process carried out taking into account the time factor. The growth rate of cash flows, as well as their structure by type of activity of the enterprise, are formed under the significant influence of the time factor. The functioning of money capital over time is always the result of the alternative chosen by its owners - to use it for the purpose of current consumption of a certain amount of goods or to involve it in a further economic process to obtain these goods in larger quantities after a certain period of time.
• - Cash flow of an enterprise as a process carried out taking into account the risk factor. Risk is the most important characteristic of all forms of use of funds in the economic activities of an enterprise. The carrier of this factor is cash in inextricably linked with its characteristics as economic resources that generate income during use. The level of risk in the use of funds is directly dependent on the level of the expected effect of cash flow (net cash flow), in particular, on the level of profitability of individual business transactions, forming a single scale of “profitability - risk” in their implementation. The risk factor is an important objective attribute of the formation of cash flows of an enterprise and must be taken into account in the process of managing them.
• - Cash flow of an enterprise as a process carried out taking into account the liquidity factor. Serving the process of capital circulation in cash, the cash flow generated by the enterprise must ensure not only the timely receipt and expenditure of funds, but also a certain level of their reserve in order to maintain constant solvency. Such a reserve is created at the enterprise, both in the form of various types of monetary assets, and in the form of their substitutes (short-term financial investment instruments).

So, the Cash Flow of an enterprise is a set of receipts and payments of funds generated by its economic activities, distributed over separate intervals of the time period under consideration, the movement of which is associated with factors of time, risk and liquidity.

The concept of “enterprise cash flow” is aggregated, including numerous types of these flows serving economic activities. Let's consider the systematization of cash flows according to the main classification criteria that characterize their totality.

• 1. By the scale of servicing the business process (cash flow for the enterprise as a whole; cash flow for individual structural divisions (“responsibility centers”) of the enterprise; cash flow for individual business operations)
• 2. By type of economic activity (cash flow from operating activities; cash flow from investment activities; cash flow from financial activities.) (Fig. 4);

Rice. 4.

• 3. By direction of cash flow (positive cash flow (cash inflow) and negative cash flow (cash outflow))
• 4. According to the variability of the direction of cash flow (standard cash flow and non-standard cash flow)
• 5. According to the method of calculating the volume of cash flow (gross cash flow and net cash flow)
• 6. By the nature of cash flow in relation to the enterprise (internal cash flow and external cash flow)
• 7. By the level of sufficiency of cash flow (excess cash flow and deficit cash flow)
• 8. According to the level of balance of the volume of interrelated cash flows (balanced cash flow and unbalanced cash flow)
• 9. By time period (short-term cash flow and long-term cash flow)
• 10. According to the forms of funds used (cash cash flow and non-cash cash flow)
• 11. By type of currency used (cash flow in national currency and cash flow in foreign currency)
• 12. By importance in the formation of the final results of economic activity (priority cash flow and secondary cash flow)
• 13. By predictability of occurrence (fully predictable cash flow, insufficiently predictable cash flow and unpredictable cash flow)
• 14. If possible, regulation in the management process (cash flow that can be regulated and cash flow that cannot be regulated)
• 15. If possible, ensure solvency (liquid cash flow and illiquid cash flow)
• 16. According to the legality of implementation (legal cash flow and shadow cash flow)
• 17. According to the time estimation method (present cash flow and future cash flow)
• 18. By continuity of formation in the period under review (regular cash flow and irregular cash flow)
• 19. According to the stability of time intervals of formation (regular cash flow with uniform time intervals and regular cash flow with uneven time intervals).

Cash management seems to be one of the most significant functional areas of the financial management system, closely related to other enterprise management systems. Cash management is organically included in the system of managing income and costs, managing the movement of assets and capital, managing all aspects of the operating, investment and financial activities of the enterprise.

Cash management is a system of principles and methods for developing and implementing management decisions related to the formation, distribution and use of enterprise funds and the organization of their turnover.

Effective management of an enterprise's funds is ensured by the implementation of a number of principles, the main of which are integration with the overall enterprise management system, the complex nature of the formation of management decisions, high management dynamism, variability of approaches to the development of individual management decisions, and focus on the strategic goals of the enterprise's development. An effective cash management system, organized taking into account the stated principles, creates the basis for high rates of development of the enterprise, balancing the volumes of its main types of economic activities, achieving high final results of these activities and the constant growth of its market value.

Table 1.

System of main tasks aimed at implementation

main goal of cash management

The main goal of money management	The main tasks of cash management aimed at achieving its main goal
Ensuring maximum welfare of enterprise owners in the current and future periods	Formation of a sufficient volume of financial resources of the enterprise in accordance with the needs of its upcoming economic activities

The main goal of cash management is to ensure maximization of the wealth of the owners of the enterprise in the current and future periods.

In the process of realizing its main goal, enterprise cash management is aimed at solving the following main tasks:

Formation of a sufficient volume of financial resources of the enterprise in accordance with the needs of its upcoming economic activities.

Optimization of the distribution of the generated volume of financial resources of the enterprise by type of economic activity and areas of use.

Ensuring a high level of financial stability of the enterprise in the process of its development.

Maintaining the constant solvency of the enterprise.

Maximizing net cash flow, ensuring the specified pace of economic development of the enterprise on self-financing terms.

Ensuring the minimization of losses in the value of funds during their economic use at the enterprise.

In the process of managing an enterprise's funds, individual tasks must be optimized among themselves for the most effective implementation of its main goal. The ranking of individual cash management tasks is carried out by assigning weights to each of them based on their priority from the standpoint of the development of the enterprise and the financial mentality of its owners or managers.

The cash management system realizes its main goal and main objectives through the implementation of certain functions. These functions are divided into two main groups, determined by the complex content by considering the control system (Fig. 5):

Rice. 5.

Functions of enterprise cash management as a management system, including: development of an enterprise cash management policy; creation of effective cash management information systems that provide justification for alternative management decisions; analysis of cash flow formation; implementation of cash flow planning; development of an effective system for stimulating the implementation of management decisions on the formation of cash flows; implementation of effective control over the implementation of adopted management decisions on the formation of cash flows.

Cash management functions as a special area of ​​enterprise management, including: cash management in the process of operating activities of the enterprise; cash management in the process of investment activities of the enterprise; cash management in the process of financial activity of the enterprise

The cash management process is based on a specific mechanism. The cash management mechanism is a system of basic elements that regulate the process of developing and implementing management decisions in this area. The structure of the cash management mechanism includes the following elements: a market mechanism for regulating the enterprise's cash flows, State legal regulation of the enterprise's cash flows, an internal mechanism for regulating certain aspects of the formation of the enterprise's cash flows, a system of specific methods and techniques for managing the enterprise's cash flows. An effective cash management mechanism makes it possible to fully realize the goals and objectives set before it and contributes to the effective implementation of the functions of this management.

Currently, an effective tool for long-term cash management of an enterprise, subordinated to the implementation of the goals of its overall development in the context of significant changes in macroeconomic indicators, the system of state regulation of monetary turnover, the situation in the financial and commodity markets and the associated uncertainty of business results, is the cash management policy. The cash management policy is part of the overall economic strategy of the enterprise, ensuring the formation of priority goals for organizing its cash flow and the selection of the most effective ways to achieve them.

The cash management policy can be represented as a master plan of action in the sphere of organizing the cash flow of an enterprise, defining the priorities of directions and types of flows, the nature of the formation and use of cash resources that ensure the envisaged general economic development of the enterprise. This is a concept that links the development of the operating, investment and financial activities of an enterprise.

The process of developing an enterprise cash management policy is carried out according to the following main stages.

• 1. Identification of various types and volumes of cash flows of an enterprise in the process of accounting. In the process of implementing this stage of developing a cash management policy, coordination of the functions and tasks of the accounting and financial management services of the enterprise is ensured to create the necessary information base for this management. The main goal of organizing accounting and generating appropriate reporting characterizing the cash flows of various types of enterprises is to provide financial managers with the necessary information to conduct a comprehensive analysis, planning and control. In accordance with international accounting standards and established practice, two main methods are used to prepare cash flow statements - indirect and direct. These methods differ in the completeness of the presentation of data on the cash flows of the enterprise, the initial information for developing reporting and other parameters.
• 2. Analysis of trends in the development of cash flows of the enterprise in the previous period. The main purpose of this analysis is to identify the level of sufficiency in the formation of funds, the efficiency of their use, as well as the balance of the positive and negative cash flows of the enterprise in terms of volume and time. Cash flow analysis is carried out for the enterprise as a whole, in the context of the main types of its economic activities, and for individual structural divisions ("responsibility centers"). At the first stage of the analysis, the dynamics of the volume of formation of a positive cash flow of an enterprise is considered in the context of individual sources. At the second stage of the analysis, the dynamics of the volume of formation of a negative cash flow of the enterprise, as well as the structure of this flow in the areas of spending money are considered. At the third stage of the analysis, the balance of positive and negative cash flows in terms of total volume is considered; the dynamics of the net cash flow indicator is studied as the most important performance indicator of the financial activity of the enterprise and an indicator of the level of balance of its cash flows as a whole. At the fourth stage of the analysis, the synchronicity of the formation of positive and negative cash flows is examined in the context of individual intervals of the reporting period; The dynamics of the balances of the enterprise's monetary assets are considered, reflecting the level of this synchronicity and ensuring absolute solvency. At the fifth stage of the analysis, the efficiency of the enterprise's cash flows is determined. The results of the analysis are used to identify reserves for optimizing the enterprise's cash flows and planning them for the coming period.
• 3. Research and forecasting of factors influencing the formation of enterprise cash flows. Such a study predetermines the study of external and internal conditions for the formation of the enterprise’s cash flows and their possible changes in the coming period. In the process of factor research, it is necessary to determine whether the enterprise has sufficient potential to generate the required amount of monetary resources to take advantage of emerging commercial opportunities, as well as to identify which internal parameters weaken the effectiveness of the formation of monetary resources.
• 4. Formation of a system of target parameters for organizing the enterprise’s cash flows. The main goal of this process is to increase the level of well-being of the owners of the enterprise and maximize its market value. At the same time, this main goal requires a certain specification at various levels of implementation, taking into account the strategic objectives and features of the upcoming development of the enterprise’s economic activities. The system of target parameters for organizing an enterprise's cash flows should cover criteria for optimizing the volume of formation of cash resources and the structure of sources of their attraction; the cost of attracting monetary capital in all its forms; optimizing the volume of distribution of financial resources in certain areas; speed of money turnover, etc.
• 5. Justification of management approaches to the selection of sources for the formation of financial resources of an enterprise. Algorithms for management decisions included in the policy for generating incoming cash flows of an enterprise must ensure the formation of its cash resources in the required volume; financial stability of the enterprise in the process of its development, as well as minimizing the cost of raising funds. The scheme of sources for the formation of an enterprise's monetary resources should take into account the target parameters of the structure and cost of capital established at the enterprise, as well as sufficient diversification of these sources by type and timing of attraction.
• 6. Justification of management approaches to optimizing the distribution of financial resources in the main areas of their expenditure. This stage of developing an enterprise's cash management policy to the greatest extent ensures the implementation of the main goal of this management - maximizing the welfare of the owners and the growth of the market value of the enterprise. In the process of optimizing the distribution of monetary resources, the priority task is to ensure the effective development of operating activities (investment and financial activities are intended only to ensure the development of the core activities of the enterprise). Within each type of activity, the distribution of monetary resources should be based on relevant criteria, primarily the level of profitability and risk.
• 7. Ensuring a balanced formation of certain types of cash flows. Such balance must be ensured in the process of managing funds for the enterprise as a whole, for certain types of its activities, and for various “responsibility centers”. During this stage, the following form of balance sheet relationship between individual cash flow indicators is provided:

DAn + DDP = ODP + DAk,

Where DAN is the amount of the balance of monetary assets and their equivalents at the beginning of the period;

PDP - the amount of gross positive cash flow (cash receipts);

ECF - the amount of gross negative cash flow (cash expenditure);

DAc - the amount of the balance of monetary assets and their equivalents at the end of the period.

The balance of the formation of certain types of cash flows of the enterprise is ensured in the process of their current planning.

• 8. Ensuring the synchronicity of the formation of certain types of cash flows over time. This stage of developing a cash management policy is aimed at ensuring the constant solvency of the enterprise at all stages of its upcoming development (in the context of each of the intervals of the general period). The system of methods for ensuring such synchronicity involves managing the equalization of their volumes at separate intervals, accelerating or slowing down certain types of payment turnover.
• 9. Ensuring effective control of the enterprise's cash flows. The object of such control is the implementation of established planned targets for the formation of the volume of funds and their expenditure in the prescribed areas; uniformity of cash flow formation over time; liquidity of cash flows and their efficiency. These indicators are monitored in the process of monitoring the company's cash flows.
• 10. Assessing the effectiveness of the developed cash management policy. This stage completes the process of developing an enterprise cash management policy. This assessment is carried out according to a system of special economic and non-economic criteria established by the enterprise.

The most important prerequisite for developing an enterprise's cash management policy is the study of factors influencing their volumes and the nature of their formation over time. These factors can be divided into external and internal.

In the system of external factors, the main role is played by the following: commodity market conditions, stock market conditions, the tax system of enterprises, the established practice of lending to suppliers and buyers of products, the system of settlement transactions of business entities, the availability of financial credit, the possibility of attracting gratuitous targeted financing.

In the system of internal factors, the main role is played by the following: the life cycle of the enterprise, the duration of the operating cycle, the seasonality of production and sales of products, the urgency of investment programs, the depreciation policy of the enterprise, the operating leverage ratio, the financial mentality of the owners and managers of the enterprise.

The study of the factors listed above makes it possible to assess the external opportunities and internal potential of generating an enterprise’s cash flows in the process of developing a cash management policy.

The cash management policy is targeted, i.e. involves setting and achieving certain goals. Being clearly expressed, the target parameters for organizing an enterprise's cash flows become a powerful means of increasing the efficiency of its cash flow in the long term, coordination and control, as well as the basis for making management decisions at all stages of the business process. The system of target parameters for organizing an enterprise's cash flows represents the desired indicators of its cash flow, described in a formalized form, which make it possible to direct the formation and distribution of cash resources in the long term and evaluate the effectiveness of this process. The formation of target parameters for the organization of cash flows of an enterprise must meet certain requirements, the main of which are: subordination to the main goal of cash management, focus on high results of economic activity, reality (attainability), measurability, unambiguous interpretation, scientific validity, support, flexibility.

Cash flow is considered by main types of activity: current, investment, financial.

The influx of cash within the framework of current activities is associated with the receipt of revenue from the sale of products, performance of work and provision of services, as well as advances from buyers and customers; outflow - with payment of invoices from suppliers and other counterparties, payment of wages to employees, production contributions to social insurance and security funds, settlements with the budget for taxes due. The current activities of the enterprise are also associated with the payment (receipt) of interest on loans.

Cash flow in the context of investment activities is associated with the acquisition (sale) of durable property. First of all, this concerns the receipt (disposal) of fixed assets and intangible assets.

The financial activities of enterprises are mainly associated with the influx of funds due to the receipt of long-term and medium-term loans and borrowings, the issue of shares, as well as their outflow in the form of repayment of debt on previously received loans, payment of dividends and financial investments.

Cash flow is a set of cash receipts and payments distributed over time generated by its economic activities.

The high role of effective cash management of an enterprise is determined by the following basic provisions:

1. Cash serves the economic activities of the enterprise in almost all its aspects. Cash flow can be represented as the “financial circulation” system of the economic body of an enterprise.

2. Effective cash flow management ensures the financial balance of the enterprise in the process of its strategic development. The financial stability of an enterprise is determined by how different types of cash flows are synchronized with each other in volume and time.

3. Rational formation of cash flows helps to increase the rhythm of the enterprise’s operating process.

4. Effective cash flow management allows you to reduce the enterprise's need for borrowed capital.

5. Cash flow management is an important financial lever for accelerating the turnover of an enterprise's capital.

6. Effective cash flow management reduces the risk of enterprise insolvency.

7. Active forms of cash flow management allow an enterprise to receive additional profit through the effective use of temporarily free cash balances as part of current assets, as well as accumulated investment resources in financial investments.

The study of enterprise cash flows includes:

1. identification of the enterprise’s cash flows by their individual types;

2. determination of the total volume of cash flows of certain types in the period under review.

The system of main indicators characterizing the volume of generated cash flows of an enterprise includes:

Volume of cash receipts;

Amount of money spent; the volume of cash balances at the beginning and end of the period under review;

Volume of net cash flow;

Distribution of the total volume of cash flows of certain types over individual intervals of the period under review.

The process of managing an enterprise's cash flows is based on certain principles, the main of which are:

a) the principle of information reliability;

b) the principle of ensuring balance;

c.) The principle of ensuring efficiency;

d.) The principle of ensuring liquidity.

Optimization of cash flows is the process of selecting the best forms of their organization in an enterprise. The main optimization goals are:

Ensuring a balanced volume of cash flows;

Ensuring synchronicity in the formation of cash flows over time;

Ensuring the growth of the enterprise's net cash flow.

Methods for optimizing deficit cash flow depend on the nature of this deficit - short-term or long-term:

Balancing the deficit cash flow in the short term is achieved by using the “System of acceleration - deceleration of payment turnover”. The essence of this system is to develop organizational measures at the enterprise to accelerate the attraction of funds and slow down their payments. It solves the problem of balancing the volume of deficit cash flow in the short term, but at the same time creates a number of problems of scarcity of this flow in the subsequent period.

In the long term, methods for optimizing excess cash flow are associated with ensuring the growth of its investment activity:

Increasing the volume of expanded reproduction of operating non-current assets;

Acceleration of the period of development of real investment projects and the beginning of their implementation;

Implementation of regional diversification of the enterprise’s operating activities;

Active formation of a portfolio of financial investments;

Long-term repayment of long-term financial loans.

Budgeting

Budgeting is a business management technology at all levels of a company, ensuring the achievement of its strategic goals through budgets based on balanced financial indicators.

Management technology implies that the following activities are carried out in relation to any process: planning, accounting, control, analysis.

After analysis, plans and algorithms are adjusted if necessary.

In the context of business management technology, planning is divided into two stages: business planning of the company’s activities, i.e. determining the vector of its development and taking into account the main opportunities and threats in the medium term (3-5 years), and budgeting, or a financial plan of activity for the year.

With a planned approach to company management, several levels of planning can be distinguished, which differ in horizon and degree of data accuracy. Typically there are three levels: strategic, tactical and operational.

The strategic plan is the most long-term (5-7 years) and the least accurate. Hypotheses and expert assessments are used in its preparation. The main task of such a plan is to determine the main directions of development of the company.

The company's business plan serves as tactical planning. It is developed for 3-5 years and has a higher accuracy of calculated data. In their preparation, analytical and statistical apparatus is used, extrapolation of actual data to confirm hypotheses and expert assessments incorporated in strategic planning.

The operational outline of planning refers to the company's budget. This is a short-term document that is developed for one year, broken down by month. It has the highest accuracy of planning data and is formed on the basis of current information.

Budgetary activities are a closed cycle consisting of planning, accounting, control, analysis and adjustment of plans.

Planning. Based on the goals, tasks are determined that limit the process of setting up a budgeting system (list of companies, complexity of the financial structure, number of required analytics, requirements for frequency and depth of reporting information, etc.). You should immediately develop a comprehensive budget model, consisting of a statement of income and expenses, a cash flow statement and a forecast balance sheet.

After determining the goals and objectives of the budgeting system, it is necessary to develop a financial structure, since it is the main element of the distribution of powers, responsibility and motivation based on the company's performance. The financial structure is a hierarchical tree consisting of financial responsibility centers (FRC). For each central federal district, a budget will be drawn up in the future and the financial and economic indicators of its activities can be determined.

After the formation of the financial structure, it is necessary to determine specific budget items for which the Central Federal District will be responsible. This is done using a matrix of financial powers, the rows of which contain the names and numbers of articles, and the columns contain a list of financial institutions. At the intersection of the article and the Central Federal District, a sign of responsibility or analytics is indicated. The main principle of compiling this matrix is ​​that there is only one person responsible for the article for which analytics is collected.

Based on the resulting budget forms, a comprehensive financial planning model is developed, in which all formulas and relationships between budgets are prescribed. The result of the budget model is three financial forms: balance sheet, profit and loss statement and cash flow statement.

The next stages of the budget process are accounting and control. It is important to quickly monitor budget execution. A document flow system is used for operational control of income and expenses, investments and financial activities. All financial documents entailing financial and business transactions undergo a certain cycle of approvals. In the process of such approvals, the compliance of the amounts in the documents with the limits allocated in the budgets for the corresponding item is monitored. In addition, a comprehensive accounting policy is required, which reflects all the rules for assigning certain transactions to specific items in the chart of accounts. This allows for comparability of planned and actual data and their correct analysis.

The final stages of the budget process are analysis and adjustment. To implement these stages, they describe the procedure for generating and submitting reports and the rules for making changes to planning methods and management accounting policies. For all items with major deviations, an analysis of the reasons for their occurrence is carried out. An action plan is being developed to improve data accuracy.

9. Investment policy of the enterprise

The system of economic decisions that determine the volume, structure and directions of investments both within an economic entity and outside them forms the basis of investment policy. Through investment policy, improvement of the structure of production and acceleration of the pace of its development, balance and efficiency of economic sectors, obtaining the greatest increase in production and income (profit), etc. are achieved.

A feature of investment policy in modern conditions is an increase in the share of investments in technical re-equipment and reconstruction of existing enterprises and, accordingly, their reduction in new construction; direction of investment primarily in the basic sectors of mechanical engineering and agriculture; improving the structure of capital investments in resource-extracting, processing and consuming industries (in favor of the latter); increasing the share of long-term investments in the active part of fixed assets.

Investments that ensure the dynamic development of the enterprise are possible under the following circumstances:

Expanding your own business activities by accumulating financial resources in order to gain a larger market share and increase competitiveness.

Acquisition of new enterprises, development of new areas of business - diversification.

The cost aspect of the assessment means the growth of incoming funds compared to the volume of investment, taking into account discounted cash flows. The time aspect determines the payback period of the investment.

Investment design is the development of a set of technical documentation containing a feasibility study (drawings, explanatory notes, business plan of the investment project and other materials necessary for the implementation of the project). Its integral part is the development of an estimate that determines the cost of the investment project.

A project is technical materials (drawings, calculations, models of newly created buildings, structures, machines, instruments, etc.), preliminary text of a document (plan, contract), plan, plan. An investor financing a project is not interested in the process of its implementation itself, but in the profit that he will receive from its implementation; for organizations participating in the project as performers of individual works - their completion. For individual projects, the moment of their completion may be the termination of financing, achievement of specified results, full development of the designed capacity, decommissioning of the facility, etc.

The period of time between the start of a project and its liquidation is usually called the investment cycle. The investment cycle is usually divided into three stages (phases), each of which has its own goals and objectives:

1) pre-investment - from preliminary research to the final decision to accept the investment project.

2) investment - design, conclusion of an agreement or contract, construction contract;

3) production - the stage of economic activity of an enterprise (facility). Each of them, in turn, is divided into stages, periods, which have their own goals, methods and mechanisms of implementation.

10. Annuities. Analysis of cash flows of an investment project

The concept of annuity has three meanings:

1) one of the types of urgent government loan, on which interest is paid annually and part of the amount is repaid. Annuity base is the level of bank market interest at the time of loan issuance. Unlike other types of loans, annuities are not convertible;

2) equal cash payments paid at certain intervals to repay the received loan, loan and interest on it. Initially, the term meant payments made once a year, but now it is used in relation to any periods of time, i.e. quarter, month, etc. If payments are made at the end of the period, then this is an ordinary annuity, or post-numerando; if payments are made at the beginning of the period, then the annuity is called prenumerando;

3) an agreement or contract with an insurance company under which an individual acquires the right to regularly received amounts starting at a certain time, for example, retirement.

Annuity payments are most widespread. They are convenient for planning the borrower’s budget, since they always amount to the same amount. And at the first stage of repaying a mortgage loan, the amount of annuity payments is lower than the amount of differentiated payments. But in the end, the borrower who chooses the annuity payment calculation scheme will pay the lender a larger amount than the borrower who pays according to the differentiated scheme.

1) the longer the term of the annuity, the more expensive the loan is and the more profit the bank receives;

2) very often the annuity cannot be paid off ahead of time;

3) contracts often stipulate that even if the client pays a monthly payment amount greater than necessary, this will only speed up the repayment of the annuity over time, but there will be no recalculation of the payment amount; the client will pay according to the loan repayment schedule calculated at the very beginning.

The cash flow concept assumes:

Identification of the cash flow, its duration and type (short-term, long-term, with or without interest);

Assessment of factors that determine the value of cash flow elements;

Selecting a discount factor that allows you to compare flow elements generated at different points in time;

Assessing the risk associated with a given flow and how to account for it.

The concept of cash flow is aggregated, including numerous types of these flows serving economic activities.

By type of economic activity there are:

Cash flow from operating activities;

Cash flow from investment activities;

Cash flow from financing activities.

Fundamental principles of cash flow management:

1) sell as much as possible and at reasonable prices. The selling price includes not only actual cash costs, but also depreciation (a non-cash item), which actually increases cash flow;

2) accelerate the turnover of all types of inventory as much as possible, avoiding shortages, which can lead to a drop in sales;

3) collect money from debtors as quickly as possible, not forgetting that excessive pressure on all consumers without exception can lead to a decrease in future sales;

4) try to achieve reasonable deadlines for paying accounts payable without prejudice to the further activities of the company.

The main methods for calculating cash flow are direct, indirect and matrix methods.

Assessing cash flows using the direct method makes it possible to judge the liquidity of an enterprise, since it reveals in detail the flow of funds in its accounts, which makes it possible to draw prompt conclusions regarding the sufficiency of funds to pay current liabilities, as well as to carry out investment activities. The direct method is based on the analysis of cash flows in the company's accounts.

The essence of the indirect method is to convert the amount of net profit into the amount of cash. At the same time, it is assumed that in the activities of each enterprise there are separate, often significant in size, types of expenses and income that reduce (increase) the profit of the enterprise without affecting the amount of its funds. In the process of analysis, the amount of the indicated expenses (income) is adjusted to the amount of net profit in such a way that expense items not associated with the outflow of funds and income items not accompanied by their inflow do not affect the amount of net profit.