Examples of financial relationships.
1.Financial relations of the enterprise with other enterprises and organizations
Include relationships with suppliers, buyers, construction, installation and transport organizations, post and telegraph, foreign trade and other organizations, customs, and foreign companies. This is the largest group in terms of cash payments. The relations of enterprises with each other are connected with the sale of finished products and the acquisition of material assets for economic activities. The role of this group is primary, since it is in the sphere of material production that national income is created, enterprises receive revenue from the sale of products and profit.
financial relations between the founders at the time of creation of the organization during the formation of the authorized capital, as well as during the distribution of dividends;
financial relations between organizations in the process of production and sales of products, creating added value; these are primarily financial relations between suppliers and consumers;
2. Financial relations within the enterprise
Includes relationships between branches, workshops, departments, teams, etc., as well as relationships with employees and owners. Relations between divisions of the enterprise are associated with payment for work and services, distribution of profits, working capital, etc. Their role is to establish certain incentives and financial responsibility for the high-quality fulfillment of accepted obligations. Their volume is determined by the degree of financial independence of structural divisions. Relations with workers and employees include the payment of wages, bonuses, benefits, dividends on shares, financial assistance, as well as the collection of money for damage caused and the withholding of taxes.
financial relations between the organization and the personnel employed in it in the form of wages, bonuses, and the provision of social benefits;
3.Financial relations within associations of enterprises and organizations
Financial relations within associations of enterprises and organizations are the relations of enterprises with a parent organization, within financial and industrial groups, as well as a holding company.
Financial relations of enterprises with higher organizations constitute relations regarding the formation and use of centralized monetary funds, which in conditions of market relations are an objective necessity. This is especially true for financing investments, replenishing working capital, financing import operations, scientific research, including marketing. Intra-industry redistribution of funds, as a rule, on a repayable basis, plays an important role in financial management and contributes to the optimization of enterprise funds.
Financial relations between an organization and its divisions when distributing resources, as well as between organizations within a financial and industrial group, holding, union or association of which the organization is a member; such relationships are usually associated with internal redistribution of funds or financing of corporate events;
4. Relations with the financial and credit system of the state
Relations with the financial and credit system of the state are diverse. This system includes the following links: budget, credit, insurance, and the stock market.
Relations with budgets of various levels and with extra-budgetary funds are associated with the transfer of taxes and deductions.
Financial relations of enterprises with banks are built in relation to both the storage of funds in banks, the organization of non-cash payments, and the receipt and repayment of short-term and long-term loans. The organization of non-cash payments has a direct impact on the financial position of enterprises. Credit is a source of formation of working capital, expansion of production, its rhythm, improvement of product quality, and helps eliminate temporary financial difficulties of enterprises.
Banks currently provide enterprises with a number of so-called non-traditional services: leasing, factoring, forfeiting, trust. At the same time, there may be independent companies specializing in performing these functions, with which enterprises have direct relationships, bypassing the bank.
Relations with the insurance sector of the financial system consist of transfers of funds for social and medical insurance, as well as insurance of enterprise property.
Financial relations of enterprises with the stock market involve transactions with securities.
From a mandatory point of view, all financial relations of an organization should be classified into:
voluntary;
voluntary-compulsory;
forced.
Voluntary include financial relations between the founders at the time of creation of the organization, between organizations in the process of production and sales of products, between the organization and personnel regarding the consumption of labor resources, during the distribution of resources within the organization, between the organization and stock market participants.
Voluntary-compulsory financial relations are relations into which organizations enter voluntarily and are then forced to fulfill accepted obligations or conditions for the formation of relations with other legal entities. An example of such relations can be financial relations within a group, holding, association, union, since they are regulated by internal documents adopted voluntarily. Such relations also include financial relations when organizing interaction with counterparties (suppliers and contractors), the terms of which are reflected in contractual obligations. In market conditions, the choice of a counterparty and the legal norms of interaction with it are carried out voluntarily, but sanctions for violation of voluntarily accepted contractual obligations are already of a compulsory nature. The implementation of responsibility for obligations is expressed in the payment of fines and penalties for violation of the terms of contracts, compensation by personnel for material damage caused by their actions.
) and citizens. The nature and content of financial relations are determined by the nature of monetary relations.
When creating, operating and liquidating, business entities enter into various financial relationships, taking into account the specifics of their organizational and legal status
Classification of financial relations
Financial relations can be divided into the following main groups:
1. Relations with other independently operating entities of various forms of ownership that arose for the purpose of generating and distributing revenue and carrying out non-operating transactions, including.
2. Relations between independently operating entities and individuals through shares, bonds and other securities.
3. Relations between the enterprise as a legal entity and personnel.
4. Relations based on labor relations within the enterprise.
5. Relations of the parent enterprise (holding) with its subsidiaries and branches.
6. Relations of the enterprise with the budget and extra-budgetary funds, as well as fiscal (tax) authorities when paying taxes and mandatory fees.
7. Relations of the enterprise with financial and credit institutions (banks, investment companies, funds).
International financial relations
Economic cooperation between states presupposes the existence of international financial relations. In recent years, interstate financial, credit, settlement and currency relations have expanded significantly. Being one of the forms of economic, scientific, technical and cultural cooperation between states, these relations at the same time have specific features. Taking into account these features allows us to combine these relations into one group of international financial relations. The dynamic development of international financial relations led to the creation of international financial organizations and the formation of world financial centers.
Notes
Wikimedia Foundation. 2010.
See what “Financial relations” are in other dictionaries:
Economic ties, interactions, relationships in monetary form. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. 2nd ed., rev. M.: INFRA M. 479 p.. 1999 ... Economic dictionary
FINANCIAL RELATIONS- monetary relations that arise in the process of distribution and redistribution of the value of the social product and part of the national wealth in connection with the formation of monetary income and savings among economic entities and the state (see... ... Financial and credit encyclopedic dictionary
financial relations- economic ties, interactions, relationships in monetary form...
monetary and financial relations- — EN monetary relations The different modes in which countries, nations, etc., are brought together by financial, currency, or pecuniary interests. (Source: OED)… … Technical Translator's Guide
Financial relations between companies and organizations for making payments for goods, works, services. O.r. carried out through credit organizations and banks. Dictionary of business terms. Akademik.ru. 2001 ... Dictionary of business terms
Financial relations between companies and enterprises related to payments for goods, work, and services. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. 2nd ed., rev. M.: INFRA M. 479 p.. 1999 ... Economic dictionary
settlement relations- financial relations between companies, enterprises related to making payments for goods, work, services... Dictionary of economic terms
Financial crimes are socially dangerous acts that encroach on financial and economic relations regulated by the rules of financial (including tax, currency) law on the formation, distribution, redistribution and... ... Wikipedia
Financial projects of Sergei Mavrodi- The MMM Association was registered by Sergei Mavrodi, his brother Vyacheslav Mavrodi and Olga Melnikova in 1989 with the Lenin Executive Committee of Moscow as a cooperative, and began its activities with the sale of computers and office equipment. Name... ... Encyclopedia of Newsmakers
Relative indicators of the financial condition of an enterprise, which express the relationship of some absolute financial indicators to others. Terminological dictionary of banking and financial terms. 2011… Financial Dictionary
Books
- International monetary, credit and financial relations. Textbook for bachelors, V. A. Antonov. The textbook sets out the basic issues of the course International Monetary, Financial and Credit Relations: International Monetary and Financial Relations and the World Monetary System; development trends…
Financial relations need to determine the subject of financial law. The subject or elemental composition of finance is money and other representatives of the value of real assets of national wealth. The subject matter of financial law is the power to acquire real assets of national heritage in a certain amount according to their value. However, money, more generally finance, becomes real money, finance only when it is owned by a specific subject. It can be a public legal entity, a state, a corporate firm, or an individual, a person, a citizen. The subjective certainty of financial assets is their essential characteristic. Real assets do not lose their quality of being part of the national wealth, even if they find themselves in an ownerless state. Finance, especially in its non-monetary forms, financial instruments, often ceases to be such if it finds itself outside the zone of its state jurisdiction, as well as in an ownerless state.
Types of financial relationships.
In connection with the needs of society, financial relations arise that are initially objective. In today's world, there are many types of financial relationships that have emerged due to the increasing complexity of economic relationships. It is also worth noting that financial management is a targeted influence on the part of the subject or owner. In turn, financial management is carried out on the basis of financial policy. Finance is directly related to pricing, credit and other areas.
All sectors of economic activity develop their own financial relations, which are characterized by the specifics of activity or production. Types of financial relations can be classified by type of interaction depending on the subjects involved. At the same time, all financial relations are characterized by properties that are common and allow them to be classified into different groups.
Types of financial relationships can be divided in the following way:
- 1. Financial relations between the state and a legal entity. All entrepreneurs pay taxes to the state, since the most important right of any state is to collect taxes. In turn, the state ensures the normal functioning of the legal entity, providing it with financial and legal support.
- 2. Financial relations between the state and an individual, that is, a living person. An individual, like a legal entity, pays taxes to the state, and in return the state undertakes to provide him with social guarantees and so on. Taxpayer money in most cases goes to the maintenance of social institutions and other state expenses.
- 3. Relations between subjects. These relationships occur during the sale of raw materials, leasing, various interactions between companies and enterprises, the purchase and sale of securities, and the conclusion of contracts.
- 4. Financial relations that exist between the enterprise and a higher authority. Inter-industry and departmental relations, contributions from enterprises to various funds that will further help the enterprise.
- 5. Relations that take place within the economy. These are relationships that are carried out within an enterprise or firm directly between employees, as well as divisions of this company, regardless of the structure, and are carried out in the production process.
- 6. Financial relations of the enterprise, on the one hand, with banks, insurance companies, and various financial exchanges.
Types and groups of financial relations
Financial relations are the relations of its two opposite sides.
The type of financial relationship is the entire set of conditions under which value is transferred from one market participant to another.
legal regulation financial participant
The initial types of financial relations are divided depending on the method of their formation and the nationality of financial resources.
Financial relations are based on the processes of formation and use of primary and secondary income of market participants. Primary incomes are formed as a result of distribution relations. Secondary incomes are generated as a result of redistribution relations.
Financial relations are divided according to the method of formation (occurrence) of financial income (expenses) into distribution relations and redistribution relations.
Distribution relations are relations associated with the formation of primary income from sales proceeds. These relations, on the one hand, represent the division of the market participant’s gross income into costs and his own (production) net income. On the other hand, there is a division of costs into gross and net incomes of other market participants.
Redistribution relations are associated with the further movement (transfer) of net income between market participants. The transfer of net income can occur with or without its subsequent return, i.e. irrevocably. The transfer of net income may be for a fee or free of charge. The combination of these methods of transferring net income has four options: transfer with return for a fee and free of charge, transfer without return for a fee and free of charge.
The division of financial relations depending on the nationality of net income is their division into national and international finance.
Logically, redistribution relations follow distribution relations. However, in practice, both groups of relations often take place simultaneously, since the process of redistribution involves not only income from sales, but also non-operating income. As a result, a closed chain of distribution and redistribution relations arises. Financial relations are always the unity of relations of distribution and redistribution.
Main groups of distribution relations. Distribution relations consist of two groups.
First, it is the division of the market participant's gross income into costs and his own, or production, net income, which includes profit and depreciation charges.
Secondly, it is the division of costs into gross and net incomes of other market participants, which include wages, rent payments and indirect taxes to the state.
From a formal point of view, the relations for the distribution of sales proceeds are quite simple, since they come down to only three groups of relations and the proportions associated with them:
between a commercial organization and its employees, or the proportion between profits and wages of employees;
between a commercial organization and the owners of land and natural resources, or the proportion between profits and payments to these owners (rent payments);
between a commercial organization and the state on the payment of taxes included in gross income (indirect taxes), or the proportion between gross income and the amount of indirect taxes included in it.
However, these groups of proportions are not at all equivalent. The first proportion has a pronounced social character and is manifested in the possible confrontation between the interests of a commercial organization and the interests of its employees. The struggle for higher wages is an initial concomitant phenomenon in the development of a market economy.
The second proportion has to do with the nature of ownership of land and natural resources. If the land with its resources is the property of a commercial organization, then rent payments remain its property, which is expressed in an increase in profit margins above its industry average. In this case, nature acts as a free source of additional profit.
Both of these proportions are closely related to the relationship between profit and depreciation. An increase in depreciation charges is a factor in reducing profit margins, and vice versa. For the commercial organization itself, this proportion is completely indifferent, since both indicated parts of the value are its full property.
The third proportion shows what share of gross income the state takes without any connection with the payment of net income to workers and land owners. Indirect taxes increase the selling price of goods and services, i.e. make them more expensive for end consumers.
For the occurrence finance As a sphere of economic relations, it is necessary for the emergence and coincidence in time at a certain historical stage of a whole set of conditions (or prerequisites), such as:
- education and recognition of individuals for goods, services, land, etc.;
- the existing system of legal norms regarding property relations;
- strengthening the state as a spokesman for the interests of the entire society, acquiring the status of owner by the state;
- the emergence of socially diverse population groups.
All these conditions arise under one general prerequisite: a sufficiently high level of production, an increase in its efficiency, growth and exceeding the limits necessary for biological survival.
The formation, distribution and use of monetary income is the main condition for the emergence of finance.
Financial interests are the interests of the owners of monetary income.
For the emergence of finance, a high level of development of the monetary economy, a constant circulation of money in large quantities, and the formation and use of the basic functions of money are also necessary. Finance- is the movement of cash income. Financial relations always affect property relations. These are not only monetary relations, but also property relations. The subject of economic relations must always be the owner. It is by distributing and using cash income, of which he is the owner, that each participant in economic relations can realize his interests.
Financial resources
No economic or political decision of any importance can be implemented without a preliminary assessment of the amount of monetary income required for this. The distribution and accumulation of monetary income acquires a targeted character. The concept of “financial resources” arises. Being monetary income, accumulated and distributed for certain purposes, financial resources are used for various social, economic, scientific, cultural, political and other purposes (Fig. 18).
Financial resources- These are accumulated incomes intended for specific needs.
Financial resources serve all stages of the movement of cash income from their formation to use.
Since finances are determined by the movement of cash income, the patterns of their movement affect finances. Income usually passes through three stages (stages) in its circulation (Fig. 19):
Finance, as we see, relates to all stages of the formation, distribution and use of monetary income. Primary income are formed as a result of the sale and distribution of proceeds from the sale of goods and services. Since the production process is, as a rule, continuous, it is necessary to allocate part of the proceeds at the stage of sales of goods to ensure the continuity of the production process.
Primary income is formed as a result of expanded commodity production and is serviced by finance.
Primary distribution is the formation of primary income based on gross receipts.
Secondary distribution of monetary income (redistribution) can occur in several stages, that is, it is of a multiple nature.
As can be seen from the schematic recording of the abstract production process (Fig. 20), any production ends with the primary distribution of monetary income, without which further economic development is impossible. And the distribution of money income ( D") is served by finance. The allocation of financial resources for the expansion of production takes the following forms: payment of current material costs, depreciation of equipment, rent, interest on loans, wages of workers employed in this production. After the primary distribution of monetary income, the processes of redistribution begin, i.e., the formation of secondary income. These are primarily taxes, contributions to insurance funds, contributions to social, cultural and other organizations.
Last stage distribution and redistribution of income - their implementation. Realizable income called final. Part of the final income may not be realized, but directed towards accumulations and savings. However, there is the following financial equality, which is not violated under any circumstances:
ΣA = ΣB + ΣС,
- A- primary income;
- IN— final income;
- WITH- savings and savings.
The distribution process is influenced not only by finances, but also by prices.
Since the process of selling any goods (goods, services, etc.) into monetary income is carried out at certain prices, then price dynamics has an independent impact on the distribution process. The more prices change (both up and down), the more money income fluctuates. These shifts occur especially sharply in conditions of inflation.
Financial resources as part of cash income come in various forms. For the real sector of the economy (production) this is part of the profit, for the state budget - the entire amount of its revenue part, for a family - all the income of its members, etc.
Financial resources- this is that part of the funds that can be used by their owner for any purpose at his discretion.
The process of distribution and redistribution of financial resources
Financial resources are offered on the market by a large number of business entities and the population. It is clear that potential users (consumers) of these funds are not able to independently establish business relationships with every business entity, with every citizen. In this regard, the problem arises of combining scattered savings into significant amounts of financial resources that can be offered for use by a large potential investor.
This problem is solved financial intermediaries(banks, investment and mutual funds, investment companies, savings associations and
etc.), which accumulate free resources, primarily from the population, and pay interest on these resources. Financial intermediaries provide raised resources as loans or place them in securities. Their income consists of the difference between the interest paid on the resources attracted and the interest received on the resources provided.
Owners of cash savings can transfer their funds to investment companies, or they can directly acquire industrial corporations. But in the second case, they will encounter intermediaries - dealers And brokers, which represent professional participants in financial markets. Dealers carry out transactions independently, on their own behalf; brokers act only on behalf of clients and on their behalf.
Timely financial market offers potential investors wide investment opportunities through the acquisition of monetary obligations of a wide range of business entities. These monetary obligations are called financial instruments. These include: promissory notes, futures contracts, etc. A variety of financial instruments allows money owners to diversify their investment portfolio, that is, invest their savings in the obligations of different companies and banks. These obligations will have different returns, but also different degrees of risk. If a company goes bankrupt, investments in other companies will remain. Diversification of an investment portfolio is carried out according to the principle: “you cannot put all your eggs in one basket.”
Financial relations as a sphere of economic activity
Financial relations- these are relations associated with the distribution, redistribution and use of monetary income.
The phenomenon of financial relations as a sphere of economic relations in society arises at the stage of distribution of primary income (Fig. 21).
Financial relations, arising in connection with money and servicing the circulation of money income, concern almost all individuals and legal entities. Main participants in financial relations are producers of any product (real sector of the economy); budgetary and non-profit organizations; population, state, banks and special financial institutions. In the course of their development, financial relations give rise to credit and exist with them in close relationship (Fig. 22).
Credit relations is part of financial relationships. Both are the result of monetary relations.
Credit relations arise in connection with the provision of money by one entity to another (individuals and/or legal entities) on the terms urgency, repayment, payment.
The main difference between financial and credit relations is the repayment of funds provided on the terms of urgency, repayment and payment.
Usually isolated three stages of income flow, reflecting the formation of primary, secondary and final income.
Primary income are formed as a result of distribution (work, services). The amount of revenue is divided into a fund for compensation of material costs incurred in the production process (cost of raw materials, equipment, rent), the employee and the owner of the means of production. Thus, during the primary distribution, the income of the owners is formed. In addition, the following circumstance should be taken into account: indirect taxes established by the state are included in primary income. Therefore, at this stage, government revenues are partially generated.
At the second stage, from primary income Direct taxes and insurance payments are paid, and assistance is provided to the disabled. From the newly created funds of funds, in particular, from various levels of government, funds are paid representing the expenses of workers in the non-material sphere, doctors, teachers, notaries, office workers, military personnel, etc.
As a result of this process, a new income structure is formed. It consists of secondary incomes formed during the redistribution of primary incomes.
But doctors, teachers, and employees, in turn, pay taxes and make insurance contributions. These taxes and contributions form funds intended for certain payments. As a result of such payments, tertiary income may be generated. The chain of their formation is almost impossible to trace. The movement of these incomes is a very complex process.
The result of this process, its third final stage, is the formation of final income. They are used to purchase goods and services. A certain portion of income is saved.
The amount of primary income for a certain period necessarily equals the amount of final income plus savings. Distribution and redistribution of income means the formation of a new structure. Moreover, this structure reflects the economic relations (connections) between economic structures and the state.
At each stage of income generation, funds of funds are formed, i.e. finance. Consequently, it is finance that mediates the processes of distribution and redistribution of income.
The result of the functioning of the financial system is a changed structure of income.
Distribution process added(newly created) cost through is shown in Fig. 1. As can be seen from Fig. 1, as a result of the distribution of primary income of owners (entrepreneurs and workers), the income of workers in the non-material sphere is formed. However, it should be taken into account that in reality distribution processes are much more complex than reflected in Fig. 1. Part of the income of workers in the material sphere is distributed in favor of workers in the non-material sphere directly through the consumption by the former of services provided by the latter. This is how the income of lawyers, notaries, security guards, etc. is formed. In turn, they pay taxes to budgets participating in subsequent redistributions of income.
Finance as monetary relations arises at the stage of distribution. But they are the most important link in everything and have the strongest influence on it.
Control function
Control function consists of constant monitoring of the completeness, accuracy and timeliness of receipt of income and implementation of expenses from all levels and. This function manifests itself in any financial transaction. All these operations must not only be economically feasible, but also not contradict current legal norms. The control function of finance is expressed in the formation of funds of funds (budgets and extra-budgetary funds) in accordance with the declared goals and according to the standards established by the legislature. This function involves not only monitoring processes occurring in the financial sector, but their timely adjustment in accordance with the norms of current legislation.
The practical expression of the control function of finance is the system. This control ensures the validity of the formation of budget system revenues and the expenditure of budgetary funds and extra-budgetary funds. Financial control is divided into preliminary, current and subsequent. Preliminary control is carried out at the stage of developing forecasts of budget revenues and expenses and preparing draft budgets. Its purpose is to ensure the correctness of budgetary indicators. Current control is responsible for the timeliness and completeness of the collection of planned income and the targeted expenditure of funds. Subsequent control is aimed at verifying the reporting data.
Stimulating function
Stimulating function finance is associated with the impact on processes occurring in the real economy. Thus, during the formation of budget revenues, tax benefits may be provided for certain industries. The purpose of these incentives is to accelerate the growth rate of technologically advanced products. In addition, the budgets provide for expenses that can ensure structural restructuring of the economy through financial support for high-tech technologies and the most competitive industries.
Finance, understood in the broad sense of the word, includes all monetary funds, including loans. Therefore, credit relations are part of finance. is the movement of the loan fund.
One can also define credit as a system of economic relations regarding the transfer from one owner to another for temporary use of values (including money). Credit relations have their own specifics. A loan is associated with the transfer of a fund of funds for temporary use on the terms of repayment, urgency, payment, and security. These conditions distinguish credit relationships from other financial relationships.
See also:International financial relations are an integral part and one of the most complex areas of the world economy. They focus on the problems of the national and global economy, the development of which historically runs in parallel and has a close relationship. International relations are unthinkable without an established system of financial relations. The world financial system is economic relations associated with the functioning of world money and serving various types of relationships between countries (foreign trade, export of capital, investment, provision of loans and subsidies, scientific and technical exchange, tourism, etc.).
The development and stable functioning of the international financial system is due to the growth of productive forces, the creation of a world market, the deepening of the international division of labor, the formation of a world economic system, and the internationalization of economic relations. In the modern world, the economies of all countries are closely interconnected. Thus, a financial crisis in one country can pose a threat to the economic stability of many countries around the world. Bankruptcies, debt moratoriums, and defaults in one particular country can cause stock and currency crashes, stock market shocks, defaults, price hikes, and other disruptions throughout the world.
This is especially relevant at the present stage of development of the global financial system, when the world's leading economists are sounding the alarm about a sharp deterioration and the threat of a crisis in the world economy against the backdrop of a possible recession in the United States. World finance arose as a result, on the one hand, of the spread of financial relations to world economic relations, and on the other hand, they were a consequence of the emergence and development of the financial subsystem of the world economy. Being part of the world economy, they represent the totality of the financial resources of the world, i.e. the financial resources of the countries of the world with their financial organizations, international organizations and international financial centers of the world, all legal business firms and the entire population of the Earth, which, as is known, exceeds 6 billion people
The international financial system is a collection of national economies of different countries. The national financial system is formed by regulated financial relations and financial institutions that mobilize funds and distribute them in connection with financing and lending to the national economy of a particular country.
Types of financial relations
Any financial relationship is objective in nature and arises in connection with the need to meet the needs of social production. All types of financial relations are mediated by a financial mechanism. The forms and types of financial relations at this stage of the development of society are characterized by quite a wide variety, which is explained by the constant complication of economic relations and the increasing influence of the state on the course of the economic process.
Financial management is a targeted influence on them on the part of management subjects. In this case, the objects of management are various types of financial relations that form the financial system. The subjects of management are financial management bodies (the so-called financial apparatus). Management of financial relations is carried out on the basis of financial policy, which is multifaceted in content and directly related to the activities of business entities in the implementation of their economic interests. Finance in the system of monetary relations is associated with credit, price and other areas.
The main task in the development of financial relations in the Russian Federation is associated with the need to strengthen the foundations of the economy, strengthen democratic principles in the social sphere and strengthen the state in managing financial processes. Financial relations develop in all sectors of the economic life of society at the stage of value distribution. Different types of financial relations exist, first of all, between citizens and economically independent economic units with the state (payments to the budget and extra-budgetary funds, budget financing). In addition, financial relations exist between the state and organizations acting as its creditors in the domestic and foreign financial markets.
Relations between state and self-government bodies when providing mutual financial assistance are also financial relations. This category also includes relations between business entities regarding the payment of fines, penalties, penalties, between enterprises and employees when paying wages, financial assistance, etc. All types of financial relations form a unified financial system of the country. Since financial relations mediate the movement of capital, income and other funds of enterprises, on this basis they can be divided into several groups. These are the relations of enterprises with the state, other enterprises (counterparties), financial intermediaries (currency exchanges, stock exchanges, banks, insurance companies, etc.).
Within the enterprise itself (between structural divisions and personnel), within individual associations, organizations, between enterprises and investors (participants, shareholders, owners). The state largely contributes to the diversity of relations in the field of finance, developing new forms of their use. They are established in accordance with the main objectives for the development of the country’s economy at a given historical stage. Financial relations are necessary for the objective development of economic relations and are the main instrument for implementing state policy in the sphere of financial relations.
All types of financial relations are characterized by some common properties that allow them to be classified into separate groups, depending on whether they participate in social reproduction, provide its insurance protection, or ensure state regulation of the economy and social sphere. Such groups are understood as spheres of relations that mediate the functioning of business entities, municipal and state administration, and insurance.
Areas of financial relations.
Financial relations are the relations of its two opposite sides. The type of financial relationship is the entire set of conditions under which value is transferred from one market participant to another. The initial types of financial relations are divided depending on the method of their formation and the nationality of financial resources. Financial relations are based on the processes of formation and use of primary and secondary income of market participants.
Primary incomes are formed as a result of distribution relations.
Secondary incomes are generated as a result of redistribution relations.
Financial relations are divided according to the method of formation (occurrence) of financial income (expenses) into distribution relations and redistribution relations. Distribution relations are relations associated with the formation of primary income from sales proceeds. These relations, on the one hand, represent the division of the market participant’s gross income into costs and his own (production) net income. On the other hand, there is a division of costs into gross and net incomes of other market participants.
Redistribution relations are associated with the further movement (transfer) of net income between market participants. The transfer of net income can occur with its subsequent return or without it, i.e. irrevocably. The transfer of net income may be for a fee or free of charge. The combination of these methods of transferring net income has four options: transfer with return for a fee and free of charge, transfer without return for a fee and free of charge. The division of financial relations depending on the nationality of net income is their division into national and international finance.
Logically, redistribution relations follow distribution relations. However, in practice, both groups of relations often take place simultaneously, since the process of redistribution involves not only income from sales, but also non-operating income.
As a result, a closed chain of distribution and redistribution relations arises. Financial relations are always the unity of relations of distribution and redistribution. Main groups of distribution relations. Distribution relations consist of two groups. First, it is the division of the market participant's gross income into costs and his own, or production, net income, which includes profit and depreciation charges. Secondly, it is the division of costs into gross and net incomes of other market participants, which include wages, rent payments and indirect taxes to the state.
From a formal point of view, the relations for the distribution of sales proceeds are quite simple, since they come down to only three groups of relations and the proportions associated with them:
* between a commercial organization and its employees, or the proportion between profit and wages of employees;
* between a commercial organization and the owners of land and natural resources, or the proportion between profits and payments to these owners (rent payments);
* between a commercial organization and the state for the payment of taxes included in gross income (indirect taxes), or the proportion between gross income and the amount of indirect taxes included in it. However, these groups of proportions are not at all equivalent.
The first proportion has a pronounced social character and is manifested in the possible confrontation between the interests of a commercial organization and the interests of its employees. The struggle for higher wages is an initial concomitant phenomenon in the development of a market economy. The second proportion has to do with the nature of ownership of land and natural resources. If the land with its resources is the property of a commercial organization, then rent payments remain its property, which is expressed in an increase in profit margins above its industry average.
In this case, nature acts as a free source of additional profit. Both of these proportions are closely related to the relationship between profit and depreciation. An increase in depreciation charges is a factor in reducing profit margins, and vice versa. For the commercial organization itself, this proportion is completely indifferent, since both indicated parts of the value are its full property. The third proportion shows what share of gross income the state takes without any connection with the payment of net income to workers and land owners. Indirect taxes increase the selling price of goods and services, i.e. they make them more expensive for end consumers
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