What does the financial mechanism include? Financial mechanism: essence, elements

Financial mechanism- an active element in the management system, economics and finance in society.

In any state, for the implementation of financial policy and its successful implementation, it is used as a control element and regulator. economic relations, financial mechanism. It is a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic and social development.

The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination. The financial mechanism is considered in action, it is active and includes complex elements, has a subsystem.

The financial mechanism, like the economic mechanism as a whole, has an internal structure inherent to it. To characterize it, it is advisable to use such concepts of system analysis as subsystem, block, element.

The subsystem (part) of the financial mechanism represents the most significant driving forces financial mechanism - financial planning, financial levers and incentives, organizational structure, legal regime of the financial system, financial control. If there is a logical relationship between planning financial resources based on the development of clear guidelines with high organization of financial work and control, then the financial mechanism manifests itself within the framework of objective requirements.

A block (link) of a financial mechanism is a set of homogeneous interconnected elements, united on the basis of a common share orientation.

The block includes: financial forecasts, plans and balances, financial indicators, funds for financial support of reproduction and stimulation, legislative and regulations regulating financial relations. The building blocks only further explain the concept of a financial mechanism. However, forecasts and plans, if they are unfounded, lead to distorted financial indicators, and this leads to hasty decision-making and various amendments.

An element of the financial mechanism is the economic simplest form, through which the interests of participants are manifested in a specific way social production. The interests of the state are aimed at the formation of public finances, financial support government programs in the field of economics and social sphere, and the interests of economic entities - to preserve financial stability and economic stability. Mutual mutual interests of the participants are satisfied with the help of a financial mechanism.

Characteristic Features The main features of the financial mechanism are its dynamism, constant improvement, close interaction with the links of the economic mechanism.

The action of the components of the financial mechanism must be considered with the associated components of other economic mechanisms, with their interaction in specific conditions, taking into account the combination of interests of society, the primary self-supporting level, and individual workers.

A complex system The economic mechanism, its links, levers, elements are in constant change and interaction in accordance with the put forward and solved tasks of a certain stage of development of society, its production relations, or part of these relations associated with the development of a particular sphere or branch of the national economy.

In the conditions of a market economy and the deepening of market relations, such concepts as corporatization, dividends, licenses, currency funds are being introduced into practice, new types of taxes and targeted deductions are being approved." Money. The financial mechanism is becoming more complex, mutual requirements and obligations in the field of payment of taxes, dividends, etc. are increasing. The above-mentioned components of the economic mechanism, used in the practice of business and economic management, are designed to intensify the activities of enterprises and firms, not to deepen contradictions in society, but to satisfy common interests all participants in market relations.

Objectives of improving the financial mechanism for modern stage The development of the economy of the Republic of Kazakhstan, taking into account world experience, is associated with widespread democratization of production, deepening commercial calculation, market regulation, and strengthening economic interest in business results. The combination of private and state property and the presence of private business are regulated by the activity of the financial mechanism on a national scale.

Through rational use monetary income, savings and funds influence the financial mechanism on the final results of production, on the formation of financial resources, and the functioning of the financial market.

The financial mechanism permeates all aspects of production relations in society. Therefore, with the help of an effective, well-functioning financial mechanism, it is possible to actively influence the volume and quality of production, increase its efficiency and provide the economy with financial resources for its growth, and the state with its own public finances, centralized for the implementation of socio-economic programs.

The financial mechanism becomes more complex if its levers and incentives are used incorrectly. For example, unacceptable tax rates, numerous and cumbersome taxation, non-payment of dividends due to low income, the introduction of restrictions in the sphere of financial interest of business entities, lead to the denial of the active role of the financial mechanism in society, and vice versa, the financial mechanism becomes a brake. Only objective economic, financial, and government policies based on legal norms are able to correctly realize the capabilities of the financial mechanism. Financial policy acts as a conductor of the financial mechanism, and financial law is the basis for developing the actions of the financial mechanism.

The mechanism is a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic development. The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.

The structure of the financial mechanism is quite complex. It includes various elements corresponding to the variety of financial relationships. It is the multiplicity of financial relationships that predetermines the use large quantity elements of the financial mechanism.

For effective use finance great importance has implementation financial planning and forecasting. Regulatory registration of the applied methods of organizing financial relations (taxes, expenses, etc.), monitoring the correct application various types, forms and methods of financial relations.

Thus, the main links (elements) of the financial mechanism is:

financial planning and forecasting;
financial indicators, standards and limits;
financial management;
financial leverage and incentives;
financial control;

Depending on the characteristics of individual units public economy and on the basis of identifying the spheres and links of financial relations, the financial mechanism is divided into the financial mechanism of enterprises and business organizations, the insurance mechanism, the mechanism for the functioning of public finance, etc. In turn, each of these areas includes separate structural units.

Each area and individual link of the financial mechanism is integral part a single whole. They are interconnected and interdependent. At the same time, the spheres and units function relatively independently, which necessitates constant coordination of the components of the financial mechanism. The internal linkage of the constituent links of the financial mechanism is an important condition its effectiveness.

Thus we can conclude that financial mechanism– a set of forms and methods, tools and levers for the formation and use of funds of financial resources in order to meet the various needs of the state, business entities and the population.

Gradually, with the development of new forms of financial relations, the financial mechanism becomes more complex.

In a narrower sense, the financial mechanism can be defined as the actions of financial levers, expressed in the organization, planning and stimulation of the use of financial resources.

There are many points of view on determining the structure of the financial mechanism.

Litovskikh A.M. examines the structure of the financial mechanism, as five interconnected elements:

financial methods;
financial leverage;
legal support;
regulatory support;
Information Support.

Let's take a closer look at these elements.

Financial method can be defined as the way financial relations act on the economic process, which operate in two directions: through the management of the movement of financial resources and through market commercial relations associated with the comparison of costs and results, with material incentives and responsibility for the effective use cash funds. Market content is not included in financial methods by chance. The effect of financial methods is manifested in the formation and use of monetary funds.

Financial leverage represents a method of operation of the financial method. Financial levers include profit, income, depreciation, economic funds for special purposes, financial sanctions, rent, interest rates on loans, deposits, bonds, shares, deposits in authorized capital, portfolio investments, dividends, discount, ruble exchange rate quote, etc.

Legal support functioning of the financial mechanism includes legislative acts, resolutions, orders, circular letters and other legal documents of governing bodies.

Regulatory support the functioning of the financial mechanism is formed by instructions, standards, norms, tariff rates, guidelines and explanations, etc.

Information Support the functioning of the financial mechanism consists of various types and types of economic, commercial, financial and other information. TO financial information This includes information about the financial stability and solvency of its partners and competitors, about prices, exchange rates, dividends, interest on the commodity, stock and foreign exchange markets, etc.; a message about the state of affairs on the exchange, over-the-counter markets, financial and commercial activities any economic entities worthy of attention; various other information.

The financial management mechanism is a set of main elements influencing the development and implementation process management decisions in area financial activities enterprises.

The structure of the financial management mechanism includes the following elements:

1. The financial regulation system includes:

State regulatory and legal regulation of the financial activities of an enterprise (adopting laws and other regulations governing the financial activities of enterprises).
Market mechanism for regulating the financial activities of an enterprise. This mechanism is being formed primarily in the financial market in the context of its individual types and segments.
Internal mechanism for regulating certain aspects of the financial activities of an enterprise. The mechanism of such regulation is formed within the enterprise itself, accordingly regulating certain operational management decisions regarding its financial activities.

2. The system of external support for the financial activities of an enterprise includes:

State and other external forms of financing of the enterprise.
Enterprise lending. This mechanism is based on the provision of various forms of credit to an enterprise by various credit institutions.
Leasing (rent). This mechanism is based on the provision of complete property complexes for use by the enterprise, individual species non-current assets for a specified fee for a specified period.
Insurance. The insurance mechanism is aimed at financial protection of the enterprise’s assets and compensation for its possible losses in the event of the realization of certain financial risks.
Other forms of external support for the financial activities of the enterprise. (licensing, state examination investment projects).

3. The system of financial levers includes the following main forms of influence on the process of making and implementing management decisions in the field of financial activities:

Price.
Percent.
Profit.
Depreciation deductions.
Net cash flow.
Dividends.
Synergy.
Penalties, fines, penalties.
Other economic levers.

4. The system of financial instruments consists of the following contractual obligations, providing a mechanism for implementing individual management decisions of the enterprise and fixing its financial relations with other economic entities:

Payment instruments (payment orders, checks, letters of credit, etc.).
Credit instruments (loan agreements, bills, etc.).
Deposit instruments (deposit agreements, certificates of deposit, etc.).
Investment instruments (shares, investment certificates, etc.).
Insurance instruments (insurance contract, insurance policy, etc.).
Other types of financial instruments.

Based on all of the above, we can say that an effective financial management mechanism makes it possible to fully realize its goals and objectives and contributes to the effective implementation of functions financial management enterprise.

Sincerely, Young Analyst

To implement financial policy and successfully implement it, a financial mechanism is used. It represents a set of ways of organizing financial relations used by society in order to ensure favorable conditions for economic and social development. The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.

Structure of the financial mechanism

The structure of the financial mechanism is quite complex. It includes various elements corresponding to the variety of financial relationships.

The state, represented by its executive and legislative authorities, on the basis of a thorough study of the operation of economic laws, patterns of financial development, objectives of economic and financial policy, establishes methods for the distribution of the social product, national income, forms of cash savings, provides for types of payments, determines the principles and directions for the use of state financial resources, etc. For the effective use of finance, planning and forecasting, regulatory design of the applied methods of organizing financial relations (taxes, expenses, etc.), monitoring the correct application of various types, forms and methods of financial relations are of great importance.

Depending on the characteristics of individual divisions of the public economy and on the basis of identifying the spheres and links of financial relations, the financial mechanism is divided into the financial mechanism of enterprises and business organizations, the insurance mechanism, and the mechanism for the functioning of public finance. In turn, each of these spheres includes separate structural links.

For example, the mechanism of public finance is divided into budgetary and operational mechanisms off-budget funds.

In accordance with the territorial division, the financial mechanism of the state and local authorities can be distinguished. When considering the financial mechanism from the point of view of its impact on social reproduction, its functional links are highlighted: resource mobilization, financing, incentives, etc.
The internal coordination of the constituent (structural and functional) links of the financial mechanism is an important condition for its effectiveness.

The combination of elements of a financial mechanism - forms, types, methods of organizing financial relations forms the “design of a financial mechanism”, which is set in motion by establishing the quantitative parameters of each of its elements, i.e. determining withdrawal rates and norms, volume of funds, level of expenses, etc.

State activities in the field of finance are carried out according to certain rules, in compliance with established standards.

The introduction of legal norms makes it possible to establish uniform rules for organizing financial relations and protect the economic interests of society, enterprise teams and individual citizens. Legal compliance ensures strict financial discipline, allows for a unified policy in the field of finance.
The unsatisfactory state of legislation restrains economic initiative and slows down social development.

Disagreements in legal regulation result in economic costs and negative social and moral consequences. When forming a financial mechanism, the state strives to ensure its fullest compliance with the requirements of the financial policy of a particular period, which is the key to the complete implementation of its goals and objectives. At the same time, there remains a constant desire for the most complete linkage of the financial mechanism and its individual elements with personal and collective interests, which is the key to the effectiveness of the financial mechanism.

Financial policy finds its practical implementation in the financial measures of the state, which are implemented through the financial mechanism. It represents a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic development. The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.

The structure of the financial mechanism is quite complex. It includes various elements corresponding to the variety of financial relationships. It is the multiplicity of financial relationships that predetermines the use of a large number of types, forms and methods of their organization (elements of the financial mechanism).

The state, represented by its executive and legislative authorities, establishes methods for distributing the social product, national income, forms of cash savings, provides for types of payments, determines the principles and directions for the use of state financial resources, etc.

For the effective use of finances, financial planning and forecasting is of great importance. Regulatory registration of the applied methods of organizing financial relations (taxes, expenses, etc.), monitoring the correct application of various types, forms and methods of financial relations. Thus, the main links (elements) of the financial mechanism are:

– financial planning and forecasting;

– financial indicators, standards and limits;

- financial management;

– financial leverage and incentives;

- financial control;

Depending on the characteristics of individual units of the social economy and on the basis of identifying the spheres and links of financial relations, the financial mechanism is divided into the financial mechanism of enterprises and business organizations, the insurance mechanism, the mechanism of functioning of public finance, etc. In turn, each of these areas includes separate structural units. For example, the mechanism of public finance is divided into the budgetary and the mechanism for the functioning of extra-budgetary funds, etc.

Each sphere and individual link of the financial mechanism is an integral part of a single whole. They are interconnected and interdependent. At the same time, the spheres and units function relatively independently, which necessitates constant coordination of the components of the financial mechanism. The internal coherence of the components of the financial mechanism is an important condition for its effectiveness.

Based on the foregoing, we can conclude that the financial mechanism is a set of forms and methods, tools and levers for the formation and use of funds of financial resources in order to meet the various needs of the state, business entities and the population.

The financial mechanism plays a special role in the implementation of the state’s financial policy. The modern financial mechanism is designed not only to create a real financial base to ensure the economic independence of the state, but also to ensure economic regulation in the conditions of the functioning of the market and a multi-structured economy. The development of new forms of financial relations entails a complication of the financial mechanism.

An important element of managing economic and social processes is planning and forecasting. They are used mainly to predetermine rational proportions in economic development and changes in the growth rates of individual industries over a specific period. Financial planning and forecasting are one of the main elements of the financial mechanism.

Rationale financial indicators, planned financial transactions and the effectiveness of many business decisions is achieved in the process of financial planning and forecasting. These two very similar concepts are often identified in economic literature and in practice.

In fact, financial forecasting should precede planning and evaluate many options (respectively, determine the possibilities for managing the movement of financial resources at the macro and micro levels).

Through financial planning, the planned forecasts are specified, specific paths, indicators, interrelated tasks, the sequence of their implementation, as well as methods that help achieve the chosen goal are determined.

Financial forecasting is the prediction of the possible financial situation of the state or business entity, the justification of the indicators of financial plans.

Forecasts can be medium-term (5-10 years) and long-term (more than 10 years).

Financial forecasting precedes the stage of drawing up financial plans and develops the concept of financial policy for a certain period of social development.

The purpose of financial forecasting is to determine the realistically possible volume of financial resources, sources of formation and their use in the forecast period.

Forecasts allow the financial system authorities to outline different options for the development and improvement of the financial system, forms and methods of implementing financial policy.

Financial planning is a scientific process of justifying the movement of financial resources and corresponding financial relations for a certain period.

Its object is mainly the financial activity of the state or any economic entity, and the final result is the drawing up of financial plans, ranging from the estimate of an individual institution to the consolidated financial balance of the state. At the same time, not only the movement of resources for the formation and use of various funds of funds is determined, but also the financial relations that mediate them and the resulting cost proportions.

Financial planning is the purposeful activity of the state, individual units and economic entities to substantiate the effectiveness of adopted economic and social solutions taking into account their availability of funding sources, optimization of intended tasks and achievement of positive final results.

Financial planning should be based on knowledge of the objective laws of social development, trends in the movement of financial resources, and the study of the initial basis for the effectiveness of previously carried out activities and financial transactions.

Financial plans are plans for the formation, distribution and use of financial resources. Financial plans are made up of all links of the financial system, and the form of the financial plan and the composition of its indicators reflect the specifics of the corresponding link of the financial system. Thus, enterprises and organizations operating on a commercial basis draw up balances of income and expenses; institutions implementing non-commercial activities– estimates; Insurance companies, public associations and cooperative organizations - financial plans; organs state power– budgets of different levels.

Financial planning is based on the following principles:

– the principle of scientific validity of plans. This principle assumes not only the reality of financial plans, but also the choice of the best decisions, taking into account long-term benefits;

– a subject-target principle that proposes a definition of the specific purpose of financing.

The main methods of financial planning are:

– method of mathematical modeling;

– normative method;

– balance method;

– coefficient method;

– extrapolation method, etc.

Management is a set of techniques and methods for purposefully influencing an object to achieve a certain result. An important area of management activity is financial management; it is carried out by a special apparatus using special techniques and methods, incl. various incentives and sanctions.

In financial management, management objects and subjects are distinguished. The objects are various types of financial relations. Subjects are those organizational structures that carry out management.

In accordance with the classification of finance according to their areas, there are the following groups control objects:

– finances of enterprises (institutions, organizations);

- Insurance companies;

– public finances, etc.

The following management subjects correspond to them:

– financial services (departments) of enterprises (organizations, institutions);

– insurance authorities;

– financial authorities and tax administration, etc.;

The totality of all organizational structures Those who manage finances are called financial apparatus.

Management subjects use specific methods of targeted influence on finances in each area and each link of financial relations. At the same time, they also have common management techniques and methods. Thus, in financial management there are several functional elements: planning, operational management, control.

Planning takes important place in the financial management system. It is during planning that any business entity comprehensively assesses the state of its finances, identifies opportunities to increase financial resources, and areas for their most effective use. Management decisions in the planning process are made based on the analysis of financial information, which is based on accounting, statistical and operational reporting.

Operational planning is a set of measures developed on the basis of an operational analysis of the current financial situation and pursuing the goal of obtaining maximum effect at minimum costs through the redistribution of financial resources.

Control, as a control element, is carried out both in the planning process and at the stage operational management. It allows you to compare actual results from the use of financial resources with planned ones, identify reserves for the growth of financial resources, and outline ways for more efficient management.

There are strategic or general management financial and operational.

Strategic management is expressed in determining financial resources through forecasting for the future, establishing the amount of financial resources for implementation targeted programs. It is carried out by state and economic (economic) management bodies: the Verkhovna Rada of Ukraine, the Cabinet of Ministers, the President of Ukraine, the Ministry of Finance, etc.

Operational financial management is the main function of the apparatus of the financial system: the Ministry of Finance, financial departments (departments) of local councils, the directorate of extra-budgetary funds, insurance organizations, financial services of enterprises and organizations, etc.

In countries with developed market economy Most financial relations are outside the direct control of the state, since part of the financial resources are formed and used here by their owners in accordance with their own interests. The state exercises influence in this area public relations only through tax policy, financial market regulation, depreciation policy, support system for private business, etc. In reality, it is not government control that is carried out, but influence through finance on the implementation of financial policy.

Into the immediate sphere government controlled Only government finances are included.

A scientific approach to financial management is needed in every area and every link of financial relations. When choosing management decisions of a financial nature, formalized in legal laws, financial forecasts and plans, regulations, etc., the following are taken into account: the requirements of economic and legal laws; results economic analysis not only the results of the past economic period, but also the prospects; economic and mathematical methods and automated financial management systems.

A special place in the financial mechanism is occupied by financial law - a set of legal forms regulating financial relations. It is carried out with the help of financial legislation, which is a set of financial and legal documents of different legal levels. They include: legislative acts, government regulations, presidential decrees, instructions from the Ministry of Finance, etc. They regulate financial relations in society related to the implementation of the tasks and functions of the state, as well as the formation and use of financial resources.

Financial law, like other elements of the financial mechanism, is dynamic. The development of financial legislation occurs through the streamlining, updating and unification of legislative acts on financial issues.

The financial policy of the state is directly developed and implemented by public finance management bodies.

General management and financial management are carried out by the highest legislative and executive bodies of state power: the Verkhovna Rada of Ukraine, the President, the Cabinet of Ministers of Ukraine, the Verkhovna Rada and the Rada of Ministers of the Republic of Crimea. All functions of these government bodies provide strategic, overall direction and management of public finances.

Organization of operational financial management is carried out through specialized government bodies executive power (primarily through its financial apparatus) and through the financial services of business entities.

Depending on the extent of their participation in financial activities, executive authorities can be divided into two groups:

1. Executive authorities that manage finances in connection with the performance of their financial functions and tasks. These are ministries (except for the Ministry of Finance), departments and other executive authorities that approve estimates of subordinate institutions, distribute financial resources within the industry, create financial reserves, and perform other financial functions. Their powers in the field of finance are determined by regulations of the Cabinet of Ministers of Ukraine or the Council of Ministers of the Autonomous Republic of Crimea.

2. Executive authorities for which financial activity itself is the main one. These bodies were created specifically to carry out financial and credit management and together constitute a system of financial and credit authorities.

The system of financial authorities is headed by the Ministry of Finance of Ukraine. In addition to it, this system includes the Ministry of Finance of the Autonomous Republic of Crimea, financial departments of regional, Kyiv and Sevastopol city state administrations, financial departments of district, city and city-level state administrations (see diagram 5 in the appendix).

The Ministry of Finance is responsible for financial condition states, policy development and implementation.

The Ministry of Finance performs the following functions:

– participation in the development of the balance of the state’s financial resources and balance of payments;

– preparation of the draft State Budget of Ukraine, submission to the Cabinet of Ministers, and after approval by it – submission to the Verkhovna Rada;

– organizing the execution of budgets, preparing a report on their execution and submitting it for approval to the Verkhovna Rada;

– development of draft new financial legislation and regulations on economic issues;

– justification of the main provisions of the state’s financial policy and submission of the Concept of Budget and Tax Policy to the Government and Parliament of Ukraine for consideration;

– consideration and execution of management decisions related to the use of financial resources;

– monitoring the implementation of legislation by all management bodies;

– management of the operational work of financial authorities at various levels;

– organization of the functioning of the securities market;

– implementation of measures to mobilize funds through the system of public credit and management and others.

The Ministry of Finance of Ukraine is headed by the Minister. He is personally responsible for the implementation of the tasks and functions assigned to the ministry. The Ministry of Finance, within the limits of its powers, issues orders and instructions mandatory for execution by financial authorities.

The Ministry of Finance includes two separate divisions: the Control and Audit Service and the State Treasury. The control and audit service specializes in the implementation of financial control (this issue will be discussed in detail in topic 7).

The State Treasury of Ukraine was created to ensure the complete and timely execution of the state budget. It was created by the Decree of the President of Ukraine dated April 27, 1995. No. 335 and is part of the system of state executive authorities.

The State Treasury has the same regional structure as the Ministry of Finance. The distribution of powers between regional bodies in terms of financing expenses is carried out according to the characteristics of a particular funding object and its location.

The State Tax Administration also belongs to the bodies directly managing public finances. Initially, it was created as part of the Ministry of Finance, and since 1996 it has been transformed into an independent financial body. Its main task is to implement the state's tax policy. The tax administration performs the following main functions:

– development of draft tax legislation;

– carrying out mass awareness-raising work among tax payers;

– accounting of tax payers and their revenues to the budget;

– control over the correct calculation of taxes and other obligatory payments and the timeliness of their payment;

– application of penalties and administrative penalties to violators of tax legislation;

– international cooperation in the field of taxation, etc.

The regional structure of the tax administration is similar to that of the Ministry of Finance. Its highest level is the Main State Tax Administration. She develops draft tax legislation and organizes tax work and activities tax authorities in the state.

Regional authorities are tax administrations in the Autonomous Republic of Crimea, regions, the cities of Kyiv and Sevastopol and tax inspectorates in districts and cities of regional subordination. Tax administrations in regions and cities with regional divisions perform organizational and advisory functions. Direct tax work is carried out by tax inspectorates in districts and cities (without regional division). They keep track of all payers located in a given territory and control their payments to the budget.

The State Tax Administration has subordinate units for combating criminal violations in taxation (tax police).

Financial bodies of the state administration, as well as executive committees of local councils basic level perform their functions in accordance with current legislation.

Financial management of enterprises, associations and other business entities is carried out by the financial service (department) of these business entities.

Financial mechanism is a system of installed state forms, types and methods of organizing financial relations.

The financial mechanism consists of a set organizational forms financial relations and methods of formation and use of centralized and decentralized funds of funds, methods of financial planning, forms of financial and financial system management, financial legislation (including the system of legislative norms and standards, rates and principles that are used in determining government revenues and expenses, organization of the budget system and extra-budgetary funds, enterprise finance, securities market, insurance services, etc.) Financial mechanism is divided into the following types:

directive financial mechanism- developed for financial relations in which the state is directly involved (taxation, expenses, budget, etc.). It assumes that all subjects of financial relations are bound by established forms, types and methods of action. In some cases, the directive financial mechanism may also apply to financial relations in which the state is not directly involved. Such relations are either of great importance for the implementation of the entire financial policy (corporate securities market), or one of the parties to these relations is an agent of the state (finance of state-owned enterprises).

financial regulatory mechanism- defines the basic rules of behavior in the area of finance where the interests of the state are not directly affected, for example, when organizing intra-economic financial relations in private enterprises. In this case, only general order use of financial resources remaining after paying taxes and other obligatory payments. The enterprise independently develops forms and types of funds.

Elements of the financial mechanism:

1) Financial methods. Financial methods are ways of influencing financial relations on the economic process, the formation and use of funds.

TO financial methods include: financial accounting; analysis; planning; forecasting; financial control; financial regulation; payment system; lending; taxation; other methods.

2) Financial leverage (profit, income, dividends, interest, discount).

Financial levers are instruments. Under the financial instrument itself general view refers to any contract under which there is a simultaneous increase in the financial assets of one enterprise and the financial liabilities of another.

Legal support.

Legal support for financial management is the current legislation regulating entrepreneurial activity. The complexity of the financial activities of enterprises necessitates its state regulation: regulation financial aspects creation of business organizations; tax regulation; regulation of bankruptcy procedures for enterprises. Legislation regulating the financial activities of an enterprise includes: laws, Presidential decrees, Government resolutions, etc.

4) Regulatory support(instructions, standards). Regulatory support for the functioning of the financial mechanism consists of: instructions; standards; norms; tariff rates; methodological instructions and explanations, etc.

5) Information support. Information support for the financial activities of an enterprise is a process of continuous targeted selection of relevant informative indicators necessary for the implementation of effective management decisions on all aspects of the financial activities of the enterprise. How larger size capital is used by the enterprise, the more important the quality of information necessary for making financial decisions aimed at increasing the efficiency of the enterprise.

10. Financial system of the Russian Federation: concept, structure.

Financial system represents a collection various fields financial relations, each of which is characterized by features in the formation of funds of funds and a different role in social reproduction.

Financial system This is a form of organizing monetary relations between all subjects of the reproduction process for the distribution and redistribution of the total social product.