Currently, the Russian economy faces major challenges. In this regard, several questions become relevant at once. All of them, to one degree or another, relate to financial resources.

Relevance of the problem

Material and financial resources today are of paramount importance for economic development. The intensity of market relations requires a stable injection of funds into all areas economic activity. The financial resources of the state are of particular importance. Their condition, in turn, depends on the profitability of companies operating in the country. The existing problems are due to various reasons. They are associated with changes that occur in the credit and banking structure and the periodic deepening of inflation and crisis processes. All this negatively affects the financial resources of the state in general, and the state of capital of companies in particular.

Raising funds

Managing financial resources requires a competent approach. Today this is one of the most important tasks for all business entities. In addition to the fact that one’s own financial resources are involved, there is a need to attract third-party borrowed funds. However, this process can only produce results if a rational relationship between these flows is observed. In this regard, it is necessary to create a scientifically based capital allocation policy that would take into account the specifics of the activities of entities within the modern market.

Financial resources of the enterprise

The capital of an economic entity represents the foundation of its creation and subsequent development. In the process of operation, these funds ensure the interests of the owner and his staff. At the same time, capital also participates in state financial circulation. Each business entity must have certain funds aimed at meeting its needs. Financial resources enterprises are a complex that includes two elements. First of all, these are the funds that the company itself has. In addition, firms also attract borrowed financial resources. This complex is aimed at fulfilling obligations, current costs, and expenses related to capital expansion. It acts as a result of the interaction of receipt, distribution and expenditure of funds, accumulation and subsequent implementation in the course of economic activity.
Used to create capital different sources financial resources. Funds come from investors, founders, owners, investment funds, commercial banks and so on. The subsequent formation of financial resources is carried out in companies through depreciation charges and profits. This, however, does not exclude the attraction of additional issues, bonds, shares and other valuable papers, obtaining loans and other loans.

Purpose of funds

The financial resources of an organization are of paramount importance in the process of reproduction and its regulation, stimulation of economic activity and enhancing its effectiveness. In general, working capital helps to ensure control over the general condition of an economic entity. One of the main tasks of managers is proper use financial resources. Specialists must determine the most promising areas for their distribution and ensure income generation on their basis. Thus, the financial resources of the organization perform control, stimulating, distribution, regulatory and reproduction functions.

Basic requirements for funds

To ensure the efficiency of financial resources, any company needs to:

1. Mobilize funds. This ensures their maneuverability and allows them to concentrate on the most important areas of economic activity.
2. Develop plans in accordance with which the formation of sources of financial resources, the actual receipt of funds, distribution for the coming and long-term periods will be carried out.
3. Maintain certain proportions between spending funds and receiving them.

Classification

The sources of financial resources of an enterprise include all receipts and cash income available to a company or other business entity for a certain period. They are aimed at making contributions and expenses that are necessary for social and industrial development. In addition to those listed above, the following sources of financial resources of the enterprise are involved in the turnover:

• Budgets of different levels.
• Special centralized funds.

Available and incoming funds are used to advance current costs, investments, deductions and expenses for social and other needs, and so on. Sources of financial resources are divided into several categories:

1. Off-budget centralized funds.
2. Attracted on a non-refundable or refundable basis.
3. Budget revenues.
4. Borrowed funds.
5. Equity.

The accumulation of funds is carried out mainly through profits from the main and other (additional) activities, income from the sale of retired material assets, increasing sustainable liabilities, depreciation, loans and credits, shares and other employee contributions, various targeted revenues. Sources of financial resources include concerns and associations, which, in turn, include the company and higher structures, while maintaining industry-specific state regulatory bodies. In the latter case, funds come in the form of insurance payments and subsidies. The formation of the enterprise's financial resources is thus carried out through redistribution. Everyone in this group higher value purchase insurance payments, and less and less - budget revenues, directed strictly to targeted needs.

Inclusion of funds into circulation

Financial resources can be used for various purposes. The main ones include:

1. Ensuring current production and sales processes for stable production and trading activities. This is achieved through planned allocations of funds to core and support operations, marketing, supplies and distribution.
2. Financing of management activities that help maintain the functionality of the administrative and organizational system at high level. This task is achieved through restructuring, introducing new services or reducing the existing staff.
3. Investing in core production. In this direction they are used various methods financial resources. In particular, the most promising are short- and long-term investments in the complete renewal and modernization of production processes, the creation of new directions or the reduction of unprofitable ones.
4. Investments in production that bring profit to companies more income than your own activities. We are talking, in particular, about the acquisition of securities and other assets in different sectors of the market, investing in the capital of other companies to obtain profit and rights to participate in their management systems or in projects with a high degree of risk and profitability, and providing loans to other corporations.
5. Creation of reserves. Such sources of financial resources are formed both by the company itself and by insurance companies and budget funds, based on regulatory contributions, which, in turn, contribute to maintaining a continuous circulation of funds and protecting the corporation from unfavorable changes in market conditions.

Company capital

Financial resources that belong directly to the corporation itself are, as a rule, determined by the minimum need for funds to create the necessary inventory base, ensure planned production and sales volumes, as well as to perform calculations and make transfers on time. The company's capital is formed from the value of the property invested by the owner. It represents the difference between liabilities (liabilities) and total assets - the amount of excess of the market price of tangible assets over outstanding debt.

Benefits of Capital

Financial resources owned by the company, as opposed to borrowed funds, have the following advantages:

1. Ease of attraction. Decisions related to increasing capital, especially from internal sources, are made by managers and owners of the enterprise without coordination with other business entities.
2. High ability to generate profits in all areas of activity. This is due to the fact that the use of these financial resources does not require the payment of loan interest.
3. Ensuring monetary stability in the process of company development, corporate solvency in long-term periods. This, in turn, helps reduce the risk of bankruptcy.

Disadvantages of Capital

In addition to the advantages, financial resources owned directly by the corporation have the following disadvantages:

1. Limited volume of attraction. This, in turn, significantly reduces the opportunities for expanding the company's investment and operating activities during favorable periods of market conditions and at certain stages of its life cycle.
2. High cost compared to alternative borrowed funds.
3. An unused opportunity to increase the return on capital ratio due to the receipt of loans and credits, since without them it is impossible to ensure that financial profitability exceeds economic profitability.

Capital structure

Financial resources owned by the corporation provide stability, but at the same time they cannot ensure the creation of the necessary additional volumes during favorable market conditions. The company's funds include retained earnings, reserve, additional, authorized capital and other assets. All these elements are undoubtedly important in the activities of a corporation, but are not sufficient to obtain maximum returns.

Authorized capital

It represents the start-up funds that are necessary for the company to carry out its main activities in order to generate income. Statutory contributions can be carried out with money and property that company participants transfer to pay off obligations. The main difference between these assets is that they must be distributed among the founders. In this regard, the decision on changes adopted at the general meeting must be accompanied by the establishment of the procedure for applying them to each participant. The authorized capital represents the property core activity of the company. It ensures that the share of each founder in the management of the corporation is established, and also guarantees that the interests of creditors are respected.

Additional products

This capital consists of share premium, which is created in the JSC. Additional funds represent the amount of excess of the selling price of shares in relation to the nominal value in the process of open subscription. Share premium that arises during creation authorized capital V joint stock companies ah, cannot be directed to the company's consumer needs. Additional capital is also formed from:

1. Amounts of additional valuation of non-current assets.
2. Exchange rate differences associated with the formation of authorized capital.
3. Amounts of retained income used as sources to cover capital investments.
4. Property received free of charge, except that which relates to the social sphere and is included in retained earnings.
5. Funds from budgetary allocations to finance long-term deposits.

Replenishment of additional capital can be carried out at the expense of funds that are allocated for replenishment working capital companies. This source is formed during the distribution of retained earnings by the founders. Budget funds are credited to a special account, from which they are subsequently written off to pay off expenses incurred in accordance with investment program corporations. After this, the amount spent is included in additional capital. The basis for such accession is the use of budget allocations for their intended purpose. Typically, part of the capital arising from the receipt of a certain type of property or an increase in its price is used to cover expenses in connection with the disposal of similar material assets or a decrease in their value.

Reserve

This element represents the company's insurance capital, which is intended to reimburse general balance sheet costs in the absence of other options for covering them. Reserve funds are also used to pay income to creditors and investors if there is not enough profit to pay off these obligations. These resources guarantee uninterrupted operation enterprises and respect for the interests of third parties. The latter, in turn, gain confidence in the solvency of the company. Accounting for the creation of reserve funds provides the information necessary to monitor compliance with its lower and upper limits. Regardless of the situation, the maximum amount of this capital should not exceed the amount determined by the owners and which is recorded in the constituent documentation. The law, at the same time, establishes its minimum limit for joint ventures and joint stock companies.

Special funds

This form of company equity is considered quite unique and very promising. Special funds are created for subsequent targeted use. Companies can create such reserves for:

1. Payment for upcoming employee vacations.
2. Calculation of an annual bonus for long service.
3. Upcoming expenses for repairs of property intended for rental in accordance with the rental agreement.
4. Payment of remuneration at the end of the year.
5. Carrying out OS repairs.
6. Production costs for training during the seasonal nature of the activity.
7. Upcoming costs for environmental protection measures (land reclamation, etc.).
8. Warranty service and repair.
9. Covering other foreseen expenses and other purposes that are provided for in the legislation of the Russian Federation and regulations Ministry of Finance.

Consumer and savings funds

They belong to special reserves. The accumulation fund is considered to be funds that are used for the production development of the company or other similar needs that are provided for in the constituent documentation. For example, this could be the creation of new property. Consumer funds consist of funds reserved for social development activities (except for capital investments), material incentives for personnel and other works of a similar nature that do not lead to the formation of new material assets.

retained earnings

It characterizes part of the company’s income received in the previous period and not used for consumption by shareholders/shareholders/owners and employees. Retained earnings are calculated as the difference between all financial results identified from operations (based on accounting) and the assessment of balance sheet items for the reporting period and the mandatory amount of fees and taxes, including sanctions for violations. This part of the income is intended for reinvestment (capitalization) of production development. In terms of economic content, retained earnings act as one of the types of reserves of the corporation's own funds.

Third party financial resources

These primarily include borrowed funds. They characterize the total amount of monetary obligations of the company. Borrowed funds can be long-term or short-term. The latter includes all resources attracted for a period of up to a year. The main forms of these loans include short-term bank loans, various accounts payable (for services, products, work, bills issued, wages, and so on). As a rule, obligations arise to suppliers or note holders. Long-term funds are raised for a period of more than a year. Their main forms include long-term loans, debt on issued bonds, financial assistance that was provided on a repayable basis, and so on.

Involved funds

This is another type of additional income used in turnover, in addition to equity and borrowed capital. Raised funds consist of accounts payable and earmarked money before they are put into circulation for their intended purpose. A set of financial obligations arises during the current activities of the company. In the work of a corporation, debt may arise to contractors, which include contractors and suppliers, the budget, employees, dependent and subsidiary structures, extra-budgetary social services. funds and so on. Managing these funds involves individual approach to creditors. In accordance with this, a settlement scheme with them is built.

Financial resources

Financial resources- this is a set of all norms that are at the disposal of the state, enterprises, organizations, institutions for the formation of the necessary assets in order to carry out all types of activities both at the expense of income, savings and capital, and at the expense of various types revenues. Important integral part financial resources are banking resources.

Financial resources of the state and enterprises are the direct objects of financial management, that is, management of their formation, use and movement of cash flows.

Availability of sufficient financial resources, their efficient use, predetermine the good financial position of the enterprise, solvency, financial stability, liquidity. In this regard, the most important task of enterprises is to find reserves for increasing their own financial resources and their most effective use in order to improve the efficiency of the enterprise as a whole.

Effective formation and use of financial resources ensures the financial stability of enterprises and prevents their bankruptcy.

Literature

• A. F. Chernenko, N. N. Ilysheva, A. V. Basharina. Financial position and efficiency of use of enterprise resources. M.: Unity-Dana, 2009. ISBN 978-5-238-01610-8

Notes

Wikimedia Foundation. 2010.

See what “Financial resources” are in other dictionaries:

A state, region, enterprise, firm is the totality of all types of funds and financial assets that an economic entity has and is at its disposal. Financial resources are the result of the interaction of receipts... Economic dictionary

Financial resources- see Financial assets... Economic and mathematical dictionary

Cash income, savings and receipts generated in the hands of business entities and the state and intended for the purposes of expanded reproduction, material incentives for workers, satisfaction of social needs, needs... ... Financial Dictionary

Funds held by a government or commercial entity. Dictionary of business terms. Akademik.ru. 2001 ... Dictionary of business terms

financial resources- Funds of money that can be invested in the development of production or to achieve economic or social goals... Dictionary of Geography

Financial resources - – cash, available to the enterprise and intended for the implementation of current costs and expenses for expanded reproduction, to fulfill financial obligations and economic stimulation of workers. Financial... ... Commercial power generation. Dictionary-reference book

FINANCIAL RESOURCES- (English financial resources) – funds generated as a result of economic and financial activities, in the process of creating and distributing the gross national product. Accumulated by the state and economic entities and... ... Financial and credit encyclopedic dictionary

The totality of all types of funds and financial assets at the disposal of an economic entity. F.r. are the result of the interaction of receipts and expenses, distribution of funds, their accumulation and use... encyclopedic Dictionary economics and law

financial resources (state, region, enterprise, firm)- the totality of all types of funds and financial assets that an economic entity has and is at its disposal. Financial resources are the result of the interaction of receipts and expenses, the distribution of funds... ... Dictionary of economic terms

Financial resources attracted by the enterprise: new loans, proceeds from the sale of new issues of shares. External financial resources are not created by the enterprise. In English: External finance See also: Capital structure Financial Dictionary Finam... Financial Dictionary

Books

• World Economy, Vladimir Ponikarov. Tutorial corresponds to federal educational program on the global economy and reflects the results of modern scientific developments in this area. This manual reveals... eBook
• Resources and sustainable growth of an industrial metallurgical enterprise: an empirical assessment, S. V. Orekhova. The article is devoted to assessing the impact of a resource portfolio on sustainable growth industrial enterprises. The terminology has been clarified and approaches to measuring the sustainable growth of an enterprise and…

To carry out production, research and commercial activities, enterprises use certain types of resources: material, labor, financial, and cash. Material resources composition provide the basis for the production process. Their formation is carried out, as a rule, from various sources: the enterprise’s own capital, borrowed and attracted financial resources (Figure 818.1).

Wherein own funds- These are funds of enterprises that are constantly in circulation and the final period of use of which is not established. They are formed at the expense of own capital, i.e. that part of the enterprise's assets after fulfilling its obligations.

. Borrowed funds- these are those that the enterprise receives for a certain period for a fee and on the terms of return. They are formed mainly through short-term and long-term bank loans

. Involved funds- these are funds that are not the property of the enterprise, but due to current system settlements are constantly in their circulation. They are formed from all types of accounts payable of the enterprise

All types of the above sources are involved both in the formation of the enterprise’s assets and in the implementation of its production and economic activities in order to obtain appropriate income and profit

So, in financial resourcesone should understand the total amount of equity, borrowed and attracted capital, which is used by enterprises to form their assets and carry out production and economic activities in order to generate income.

There are the following main components of financial resources enterprises:

Profit;

Depreciation deductions;

Working capital;

Budgetary allocations;

Income from trust funds;

Receipts from centralized corporate funds;

Loans

Let us briefly describe these types of financial resources and the sources of their formation.

. Profit- This monetary value financial resources created by enterprises of any form of ownership and owned by them after the distribution of income from economic activities. Profit is the most financial category at the level of business structures, reflecting the positive financial result of the economic activity of the enterprise, characterizing the efficiency of production and, ultimately, determining the volume and quality of products, the state of labor productivity, and the level of cost. At the same time, profit influences the strengthening of commercial calculations and the intensification of production under any form of ownership. Profit is also not only a source of meeting the intra-economic needs of enterprises, but also a source of formation of budgetary resources of the state.

. Depreciation deductions- this is a type of targeted financial resources that reflect the transfer of part of the cost of used fixed assets to finished products and are the financial resources of the enterprise for their reproduction

. Working capital- part of the financial resources that are constantly in economic circulation. These include funds and their equivalents (short-term highly liquid financial investments), which are not limited in use, as well as other assets of the enterprise (raw materials, materials, finished products, etc.), which are intended for sale or consumption during the operating cycle or during twelve months from the balance sheet date.

. Budget allocations always have a strictly defined procedure for use and can be provided to the enterprise in the form:

- budget investments- allocation of funds in the form of capital investments for the development of production in priority areas that affect the efficiency of the country’s economy as a whole;

- budget loans- are provided to enterprises in the public sector of the economy for temporary needs in case of financial difficulties. They are carried out, as a rule, on a return basis for approved projects of use in; may be interest-free or have a low interest rate;

- government subsidies- allocation of funds to compensate for losses of enterprises when unprofitability is a consequence of market conditions or state policy;

- government subsidies- allocation of funds from the budget to subjects entrepreneurial activity for a decision specific tasks within the framework of special state development programs

Receipts from centralized corporate funds characterize the intracorporate redistribution of financial resources based on the balance of relationships

. Loans- financial resources temporarily provided for the use and disposal of an enterprise to cover temporary and seasonal production needs

Credit exists in two forms:

- commercial (commodity) loan- this is the purchase of goods or services with deferred payment;

- Bank loan- a loan from a bank or other institutions in cash at a certain interest rate

The composition of financial resources and their volumes depend on the type and size of the enterprise, the type of its activity, and production volumes. The greater the production volume and the higher the efficiency of the enterprise, the greater the volume of its own financial resources, and vice versa.

The presence of a sufficient amount of financial resources and their effective use determine the satisfactory financial condition of the enterprise: solvency, financial stability, liquidity and profitability. Taking this into account, the most important task of enterprises is to find reserves for increasing their own financial resources and their better use to improve the efficiency of the enterprise.

Financial resources- material carrier financial relations. Financial distribution covers the social product and part of the value of the national security, therefore, financial resources include that part of the value of the social product and national security that is distributed and redistributed with the help of finance. Financial resources are monetary incomes and savings generated in the hands of business entities and the state and intended for the purposes of expanded reproduction, material incentives, meeting social needs, defense and government needs.

Financial resources are one of the components of all monetary resources circulating in the country, which in addition to them also include credit resources, cash income of the population, and working capital of enterprises. It is not difficult to draw a line between financial resources and monetary income. because financial resources are at the disposal of the state and business entities, while the latter are in the hands of citizens and are used to meet vital needs.

Credit and financial resources have different sources, and in II, credit resources are used on the terms of urgency, payment, and repayment.

Working capital is also not included in financial resources, because The peculiarities of the use of working capital in an enterprise presuppose their constant, inextricable circulation in the form of a natural-material component. The enterprise cannot use its working capital even temporarily for other purposes, because OS should always be strictly used to maintain the circulation of objects of labor in the enterprise. Financial resources do not have greater independence from the natural-material form of the value of the created product. They can be distributed and redistributed through various channels and funds, so experts do not include working capital as part of financial resources.

Composition of financial resources: the basis is SOP (at the micro level - revenue). It is divided into GNP and working capital reimbursement.

Reimbursement of the working capital fund - purchase of commodity and material assets, items of labor for renewal production process, here financial resources are formed through surplus fixed assets.

The composition of GNP at the stage of primary distribution includes: compensation of fixed assets, wage fund and net income society.

Reimbursement of fixed assets occurs through the depreciation fund (renovation only), repair fund and intangible assets; - all these 3 elements are separate types of financial resources)

The wage fund does not belong to financial resources, but taxes are withheld from wages (i.e., part of the wage fund through secondary distribution turns into financial resources) and voluntary payments ( insurance premiums, purchase of CeBu).

Net income of society includes 3 categories:
1) Indirect taxes (VAT, excise taxes, customs duties).
2) Contributions to extra-budgetary funds and other payments included in the cost of production.
3) Profit. And all these 3 elements are part of financial resources.

Those. Financial resources include most of the product created by society. According to the Ministry of Finance, in 1996 the volume of financial resources amounted to 1624 trillion. rubles, and GDP - 2300 trillion. rubles; forecast for 1997 - 2100 and 2720 trillion. rub. respectively. Structure of financial resources:
27% - depreciation charges (due to revaluation);
24% - profit;
18% - indirect taxes;
15% - to extra-budgetary funds.

Ways to increase financial resources :
I. External loans- attraction of financial resources from other states.
II. A unique source of financial resources is money emission. By turning to the printing press, the state imposes an invisible indirect tax on us.

Another way is national property, estimated at $3.5 trillion, which is only partially included in financial resources through proceeds from the sale of state property and privatization, from the sale of unnecessary property legal entities, balances of unused financial funds created in previous years (budgetary, off-budget, reserve, economic stimulation), proceeds from the sale of ownerless, confiscated property, repayment of loans by some debtor countries. According to forecasts for 1997, income from the sale of property is 14 trillion rubles - about 0.5%.

Sources of financial resources, cost of social product and national security:

Types - specific forms in which it is carried out financial distribution these sources (specific payments, deductions, income, savings, which we classify as financial resources.

The volume of financial resources primarily depends on the volume of GDP created in the country; their nominal value also depends on the scale of prices, as well as on the ratio individual parts social product, and above all the necessary and surplus product (the greater the surplus, the greater the amount of financial resources. An increase in financial resources can also occur due to an increase in the value of fixed assets as a result of changes in the depreciation rate or revaluation of fixed assets.

Factors influencing the amount of certain types of financial resources :
1) The amount of depreciation is influenced by: the level of depreciation rates, the book value of fixed assets, the ratio between individual elements of fixed assets.
2) Contributions to extra-budgetary funds, because They are set as a percentage of the payroll; they depend on the size of the payroll, insurance premium rates, and the level of collection.
3) Profit depends on the level of profitability (costs), volume of production and sales, structural changes and price - as the main factor.
4) Indirect taxes depend on the volume of taxable turnover, the level of indirect tax rates, collection (tax discipline) and the level of tax benefits.

Lack of financial resources, on the one hand, as a result of a direct reduction in their real volume due to a decline in production, and on the other hand, a sharp increase in the need for financial resources in all areas of financial relations caused by the need to invest in structural restructuring of the economy (demilitarization, demonopolization); disintegration of production and social protection the poor, in addition to increased costs as a result of the impoverishment of a large group of the population.

Additional sources of financial resources, which is why we receive less - imperfection of laws; - errors in management decisions (the departure of huge capitals abroad; economic assistance is provided to other countries on a large scale.

The loss of financial resources occurs as a result of the sale of large enterprises for meager prices during voucherization (e.g. England at one time received $100 billion from this, and Russia - about $2-3 billion.

A huge source of financial resources lies in mineral resources, which, according to various sources, are estimated at $29 trillion.

In addition, the huge financial potential lies in a highly qualified workforce, but the state does not create favorable conditions for its export, while in many other countries, well-managed export of labor significantly replenishes the state treasury. In our country, 11,000 people went abroad in 1995.

Reserves for increasing financial resources: increasing their actual volume and their rational use. In addition to the flight of a large part of capital abroad, Russia provides very substantial assistance to other countries; the war in Chechnya brought huge losses - about $10 billion. In addition, very large costs are planned for the upcoming major projects(railway line St. Petersburg - Moscow; Olympic Games in St. Petersburg).

Main directions of use of financial resources :
1. Expenses (the use of financial resources to ensure the reproduction process - funds of commercial enterprises. These include: expenses for financing capital investments, repair costs, acquisition of intangible assets, replenishing deficiencies and financing the increase in working capital; payment of bonuses to employees to stimulate labor; provision of subsidies unprofitable enterprises; formation of a reserve fund; payment of insurance compensation to enterprises and organizations, financing of R&D.
2. Financing of socio-cultural expenses. Payments to the disabled, the poor, financing of social and cultural institutions of a non-profit type; insurance compensations for personal insurance paid to citizens by insurance authorities, provision of financial assistance, various social benefits.
3. Use of financial resources for the needs of defense, law enforcement agencies, and government agencies.

Expenses for fulfilling financial obligations to founders, investors (expenses for servicing state external and internal debt); payment of dividends to shareholders; % on shares of industrial enterprises).

The financial resources of enterprises carrying out commercial activities are understood as cash income and receipts at the disposal of an economic entity and intended to fulfill financial obligations, carry out expenses for expanded reproduction and economic stimulation of workers.

In economic literature and in our practice, the term “financial resources” is widely used, which has various meanings - from the amount of funds in bank accounts and other accounts to other indicators of the enterprise’s balance sheet.

An unambiguous and reasonable interpretation of the essence of this financial category important not only for theory, but also for practical implementation financial work at an enterprise, in a company.

The concept of “financial resources” was first introduced in our practice when drawing up the country’s first five-year plan, which included a balance of financial resources.

While the term “financial resources” is widely used in economics and in practice, its interpretation varies. In the Financial and Credit Dictionary, financial resources are considered as funds at the disposal of the state, enterprises, economic organizations and institutions, used to cover costs and form various funds and reserves.

The Economic Encyclopedia gives following definition financial resources: this component economic resources, which are means of monetary and credit budget system, which are used to ensure the smooth functioning and development of the national economy, are spent on socio-cultural events, management and defense needs. Using this method, the planned balance of the country's financial resources was formed. This was accomplished through the following sources:

• 1. Cash savings of the national economy.
• 2. Depreciation.
• 3. Enterprise funds used to cover their own costs in financial terms.
• 4. Budget revenues from collective farms, consumer cooperation and public organizations.
• 5. State taxes on the population.
• 6. Income from foreign trade.
• 7. Receipts from government internal loans and cash and clothing lotteries.
• 8. Receipt of amounts to repay loans previously provided to foreign countries and interest on them.
• 9. Loans received from foreign countries.

With this interpretation of financial resources, the distinction between money and finance disappears, which contradicts the very essence of finance.

The concept of financial resources is interpreted differently in monographs and educational literature. In the essays on the theory of Soviet finance, financial resources are defined as a part of the national income expressed in money, which can be used by the state (directly or through enterprises) for the purposes of expanded reproduction and for general government expenses. In emergency circumstances, working capital as part of the national heritage created in the past can act as financial resources.1

This definition excludes depreciation from financial resources and at the same time considers it possible to use the enterprise’s working capital as financial resources.

This definition does not fully disclose the content of this category in terms of the sources of formation of financial resources and their use for their intended purpose. The inclusion of gross profit in its own sources significantly reduces the size of the enterprise’s financial resources intended to fulfill the enterprise’s financial obligations, consisting of payments to the budget and contributions to extra-budgetary funds - state insurance, pension, employment fund, road funds, etc. It is known that the source These payments and deductions are not only profit. A significant part of them relates to the cost of production. Consequently, the main source of formation of the enterprise’s own financial resources is not gross profit, and gross income.

The formation and use of financial resources are carried out at two levels: countrywide; at every enterprise.

The size and structure of sources for the formation of financial resources on a national scale determine the possibilities of: expanded reproduction of the country's national economy, increasing the standard of living of members of society, and increasing state budget revenues.

The size of financial resources generated at the enterprise level determines the possibilities of: making the necessary capital investments; increasing working capital; fulfillment of all financial obligations; meeting social needs.

The structure of financial resources is determined by the sources of their receipt. At the national level, the main sources of income that determine the structure of financial resources are national income and income from foreign economic activity, provided that its organization is sufficiently effective. Financial resources can be partially formed at the expense of national wealth involved in economic turnover. It is also possible to generate financial resources through borrowed and raised funds from other states.

At the enterprise level, the structure of financial resources is mainly determined by its own sources - gross income and depreciation.

Institutions and organizations engaged in non-profit activities provide a variety of services, including social, managerial, public order, national defense, etc. During Soviet times, almost all of the expenses of these institutions were financed from the budget, and services were provided to consumers free of charge. In conditions market economy institutions and organizations carrying out non-profit activities have switched to new business conditions, which has led to a significant expansion of the sources of their financial resources.

The financial resources of institutions and organizations engaged in non-commercial activities are understood as funds mobilized by them from various sources for the implementation and expansion of their activities.

Public associations are created on the basis of:

• 1) people belonging to the same profession;
• 2) people’s belonging to a certain social group;
• 3) common interests, hobbies;
• 4) general approaches to solving problems of general civil and ideological significance.

Examples of public associations are trade unions; political parties; creative unions; sports societies; voluntary societies; special trust funds; charitable foundations.

The finances of public associations are formed through:

• 1) payment of entrance and membership fees;
• 2) provision of benefits and payments from association funds;
• 3) material donations from enterprises and institutions in favor of public associations;
• 4) formation and use of association funds (fund wages, capital investment fund, etc.);
• 5) transfer of income by higher authorities and receipt of assistance from them.