Short-term financial policy
Economic activity of any enterpriseincludes several components. One of its components is financial policy. It is expressed in the totality of activities carried out by the owner, labor collective, administration (in accordance with the form of ownership and type of management). These activities are instruments of financial policy. It is carried out to find and apply means for solving basic tasks and implementing the main goals.
The totality of measures contains elaborationconcepts, scientifically substantiated, and aimed at the formation of activities, the establishment of key areas of application of funds. Current financial needs affect the duration of these activities. Of no small importance is the study of the demand for services and products, the evaluation of different (material, intellectual, labor, information) resources of the organization, forecasting the results of activities. Thus, the company can implement medium-, long- and short-term financial policies.
The directions of application of the funds are established withtaking into account the set goals, developed by the concept, the organization's position in the market. Short-term financial policy promotes the most complete and effective application and increase of financial capacity. It reflects the purposeful application of the means by means of which the tactical and strategic tasks determined by the charter (constituent documents) of the organization are being solved.
Short-term financial policy allowsstrengthen positions in the market of services (products), achieve optimal sales, profitability and profit, maintain solvency and liquidity balance.
In sufficiently severe high-level conditionsinflation, instability of the economic environment, a crisis of non-payments, many organizations are forced to take measures aimed at survival. Short-term financial policy contributes to the solution of current problems, however, together with this, it forms some contradictions between the fiscal interests of the government and organizations. Contradictions are also noted between the profitability of production and the cost of foreign borrowings, the return on the stock market and equity, and other things.
It should be noted the multifaceted nature of the content of financial policy. It consists of several basic links. Among them, it should be noted:
1. Development of an acceptable concept of cash management of the organization, which will provide protection against commercial risk and high profitability.
2. Determination of the main directions for the use of financial resources for the forthcoming period. It takes into account the possibility of developing production and trade activities, as well as macroeconomic conditions (discount rate, taxation, depreciation rates, etc.).
3. Implementation of practical measures aimed at achieving the goals. Among them, in particular, include financial control and analysis, evaluation of real projects for investment and financial assets, the choice of the method of financing the organization, and others.
The totality of these three main componentsis the content of activities associated with the formation and use of monetary resources. The development of an effective system of financial regulation is associated with the emergence of problems associated with the harmonization of the development of the interests of the organization, the availability of an optimal level of financial resources, as well as maintaining a high level of solvency.
