Each enterprise attracts different types of financial resources to carry out its activities. They differ in their characteristics. Therefore, each organization carries out a constant analysis of the ratio of financial sources, as well as the effectiveness of their use. This eliminates the adverse factors that inhibit development. The main types of financial resources will be discussed below.
Definition
In the economic activity of any enterprise, different types of financial resources are used. These are sources of cash and cash equivalents that are mobilized by the company to carry out its activities. They accumulate in certain funds, heading to certain areas of activity.
The funds owned by the enterprise are directed to the development of its production, as well as the maintenance of objects that belong to the category of non-production sphere. Part of the resources goes to consumption. Also, a certain amount of money is in the reserve fund.
The sources of income for such resources may be different financial income. They are provided by the owners of the organization during its foundation. Also financial resources are borrowed funds of investors, credit organizations. They also take part in the main activities of the company. Attracting additional sources of financing, the organization receives new, additional opportunities.
Formation of resources of a commercial organization
Existing types of financial resources of the enterprise are needed to support the activities of a commercial organization. At their expense, not only the main production activity is performed, but also its expansion and development.
Initially, the financial resources of such companies are formed during their creation. This is the authorized capital, which consists of the shares of owners. Each of them contributes a certain part of money, property or other values that will subsequently allow the company to carry out its activities.
The authorized capital allows you to create that base, which subsequently can guarantee the implementation of production programs, obligations to owners.
After the first year of operation, an enterprise may have a profit. It is distributed, directing part of the development of the organization. Also, different third-party sources can be used for this. This can be loans, government loans, gratuitous or paid assistance from investors, etc.
Nonprofit Organization Resources
The types of financial resources of non-profit organizations are also diverse. They are formed from accumulations, revenues, which are sent to achieve the main goal of the company. These include entrance fees of participants in the organization, as well as their membership fees.
The income of a non-profit organization may be generated as a result of entrepreneurial or other other activities. Also, revenues can come from budget funds, as well as free assistance provided by private and legal entities.
These funds can be spent on remuneration of employees, rental of premises, transport, purchase of necessary equipment. Also, from these funds payments are made to the budget, extrabudgetary state funds. Sources of resources can be directed to overhaul or acquisition of buildings, structures.
State finances
Separately, it is worth noting the important function of existing types of state financial resources. They add up to the proceeds from the economic activities of various entities. They have a significant impact on indicators of state power. About 56% of GDP is financial resources.
Revenues to budgetary and extra-budgetary funds are formed as a result of the production activities of companies, as well as the distribution and redistribution of domestic public product, income at the macro level. The financial resources of the state are in monetary terms. They are distributed in accordance with social and industrial needs.
At the expense of the country's financial sources, the retirement of various fixed assets is compensated, national needs are met, including ensuring expansion for production activities. The more resources go into the state funds, the subjects of its economic activity more efficiently carry out their work. This allows you to accelerate economic growth, increase the welfare of the population.
Resource structure
Considering the types of financial resources of the state, it is worth noting that they are significantly affected by the results of economic activity of individual entities. Therefore, the state is interested in creating conditions for productive production activities of companies.
Their financial resources consist of own and borrowed funds. The state regulates the formation of such funds, as well as their ratio. For each specific industry, certain standards apply. This allows you to reduce the risk of loss of financial stability of the organization, and also creates the minimum necessary conditions for productive activities.
Particular consideration requires the ratio of own and borrowed funds of the company. There is an optimal level at which its activities will be as effective as possible. The complete absence of borrowed funds in the balance sheet significantly increases the stability of the company, but at the same time reduces the efficiency of use of its capital.
Main components
There are different sources and types of financial resources. They differ in a number of characteristics.
Own sources of financing can be external and internal. The first category of income includes additional contributions to the authorized capital or re-issue of shares, budget subsidies, as well as redistributed funds.
Internal sources of equity are the contribution of the founders of the company during its organization, retained earnings (remains after payments to shareholders or owners). Also in this group are depreciation and other sources.
Borrowed sources are formed from long-term and short-term bank loans, commercial loans, bonds.
Own sources
The main type of financial resources in the enterprise is equity. He makes up most of all funds. This fund is formed from several sources. The main one is the authorized capital. This is the base that allows the company to organize all processes for profit. The amount of authorized capital is determined in accordance with the form of organization of the enterprise.
When the company has been operating for more than a year, part of the net profit that remains at the enterprise after the payment of shares to shareholders and owners joins its own sources. In some years, all net profit may be directed to the further development of the company. However, dividends and shares should still be paid. Otherwise, the cost of the organization may decline.
Also a significant fund are depreciation. This fund is created to compensate for depreciation of equipment, intangible assets. This is necessary for the modernization of the technical base, the use of modern equipment. The company receives this income during sales. Depreciation is included in the cost of production.
Borrowed Sources
Existing types of financial resources of the organization can be not only their own, but also borrowed. They can come from credit organizations, investors, as well as from budget funds. The last of these sources is not received by all companies. The state finances only strategically important industries and enterprises.
Borrowed capital is received from various organizations on a paid basis. The company undertakes to return this capital with interest. This is a fee for using borrowed funds. Not every company can get such financing. Investors are interested in investing only in profitable areas, stable companies.
The amount of borrowed funds in the capital structure should correspond to the features of the enterprise. It is calculated separately for each organization. At the same time, possible risks and the estimated size of the profit from attracting such investments are taken into account.
The ratio of financial sources
All forms and types of financial resources of the enterprise are displayed in its financial statements. They are presented in the form No. 1 "Balance". All financial sources are in liabilities. They are divided into 3 sections. This is equity, as well as long-term and short-term loans.
The active side of the balance sheet reflects information about which property was financed from these funds. These are non-current and revolving funds. The correctness of the organization of the balance sheet structure largely determines the efficiency of the enterprise. Therefore, during the analysis of the organization, these indicators are constantly evaluated.
The company must have its own sources of financing. They should make up most of the balance. However, without borrowed capital, the organization’s activities are considered insufficiently effective. It is believed that an organization that works only at its own expense loses certain benefits. By attracting paid resources, it can develop new areas of production, stimulating an increase in net profit.
Distribution function
Existing forms and types of financial resources perform several functions. The main ones are distribution, control and maintenance of the enterprise. Therefore, the choice and structure of the funds of the enterprise must be treated responsibly.
The distribution function is to form all the necessary cash funds. Financial resources are involved in the distribution of income, revenue. This allows you to timely and fully fulfill all obligations to creditors, contractors, staff and the state budget.
Control function
Existing types of financial resources also perform a control function. It allows you to track the financial condition of the organization, to determine the factors constraining the development and eliminate them. Based on the system of indicators that are evaluated by the analytical department, it is possible to establish whether resources are being used efficiently, how much profit the company receives from its own and borrowed sources of financing.
