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The article analyzes the management of financial flows, which have a decisive influence on the provision of agro-industrial enterprises with financial resources, allows them to spend money effectively and profitably place or invest it with the greatest positive result. Control over financial flows and timely adjustment of the directions of their movement are of particular relevance in modern market conditions. Key words: increasing efficiency, financial management, cash flow management, cash flow optimization.

The formation of an effective system for managing the financial flows of agricultural enterprises in the context of limited available financial resources plays a role important role in achieving financial stabilization and sustainable development agro-industrial complex enterprises, like mandatory condition ensuring the competitiveness of enterprises in national and world markets.

The goal is to analyze ways to manage cash flows. Object of study - financial flows of agricultural enterprises agro-industrial complex(hereinafter referred to as APC).

The research information base includes legislative acts, regulatory documents regulating the financial and economic activities of enterprises.

The modern economic dictionary provides a definition of the flow of money and goods, according to which it is a money or commodity mass circulating over a certain period of time.

The cash flow of an enterprise consists of numerous types of these flows that organize economic activities and in order to effectively manage cash flows it is necessary to classify them.

For example, based on the volume of payments made, one can distinguish the main cash flow, which unites all others participating in the financial and economic activities of the enterprise. Sometimes it is advisable to analyze cash flows by structural divisions of an organization, which will allow them to be managed more efficiently.

A specific business transaction can also be an object for analyzing cash flows, and in this case, cash flow becomes an object of management, allowing one to influence the economic activities of the organization.

Another method of classifying cash flows is grouping by type of business activity.

Let's look at current activities. Cash flow for this type of activity includes payments to suppliers for supplied equipment, raw materials and supplies; services provided to other performers involved in operational activities. Salaries of personnel engaged in current activities; transfer of tax payments to the budget and extra-budgetary funds will also relate to current activities.

Cash flow from current activities also includes cash receipts from buyers of products, refunds of overpaid taxes and fees, and some other cash receipts related to current activities.

The financial activities of any enterprise are aimed at attracting additional capital; cash flows are generated when receiving loans and borrowings, repaying interest on them, placing free funds on deposits and other cash flows arising from the financial activities of the enterprise.

The cash flow statement of an agro-industrial complex enterprise is a form of annual financial statements that provides information on cash flows, including cash equivalents.

The economic activity of any business entity is accompanied by cash flow, the presence of which does not always mean the existence of a cash flow management system. Planned and effective management of cash flows at an enterprise can ensure a continuous process of production, sales of products and profit, and increase the intensity of ongoing business operations.

Every agricultural enterprise has had to face the problem of a lack of funds: there is debt to creditors and there is no free cash in the accounts. In this situation, some enterprises raise prices, others stop investment activities.

However, both are fraught with adverse consequences for business. After all, high prices threaten loss of competitiveness, and refusal to invest slows down the development of the company.

Therefore, in order to eliminate the possibility of cash gaps and avoid negative effects, something else is required. Namely, a well-built and well-functioning cash management system. Managing financial flows allows you to rationally use the resources of an agricultural enterprise and avoid crisis situations.

This is part of financial management, the goal of which is to constantly increase the market value of the company. And operational goals include meeting the company’s cash needs and optimizing cash flows. Each of these tasks requires attention and some effort.

In order for the company's cash needs to be satisfied, the following must be done:

maintaining an optimal amount of cash reserves;
elimination of cash gaps;
analysis of cash availability.

Cash flow optimization should include elements such as

use of the KPI system and KPI control;
use of a payment calendar, i.e. calendar (weekly) cash planning and analysis calendar plan within the framework of compliance of the plan with the fact of making payments;
control over payments;
control over the fulfillment of obligations under contracts and management of receivables.

The payment calendar allows you to track the dynamics of payments and quickly synchronize receipts and payments, ensuring compliance with payment priorities.

Using the payment calendar, you can determine the receipt and expenditure of funds, as well as their balance at the beginning and end of the reporting period.

The system for coordinating and approving payments looks like in the following way: The employee creates a request for receipt or payment of funds, which contains information about the purpose of the expense, the recipient and the date of the transaction. Responsible persons review the application, assessing the reasonableness of the amount and date of payment and checking it for compliance with budget limits.

If necessary, a decision may be made on payment of over-limit payments or the timing of payment transfer. After approval and approval of the application, funds are transferred.

This mechanism is one of the most effective ways to control costs and prevent rational use Money. In addition, applications are convenient to use to generate a payment calendar, a register of payments for the next banking day, and create payment orders.

Sometimes a situation may arise that the amount of upcoming payments on some days will exceed the available cash limit. It is at such moments that you need to use the payment priority method.

In order to prioritize payments, you need to follow several steps sequentially.

First, draw up a register of expense items and establish their order, namely:

Articles of primary importance. For example, tax deductions, settlements with banks;
items paid for secondarily. For example, the cost of purchasing materials and components, rent;
items for which payments are made only after payments for the first and second groups have been made. For example, expenses for the business needs of the company.

Secondly, when paying bills, you need to be guided by how important cooperation is with each specific counterparty. First of all, it is necessary to pay the invoices of partners with whom the company is most interested in long-term cooperation.

The third step will be to determine the status of the agreement. Several agreements can be concluded with the same counterparty, and these agreements are not always equivalent. Therefore, if there are insufficient funds, it is important to prioritize the concluded contracts in accordance with which payment will be made.

As a result, the company will receive a register of upcoming payments with pre-established priorities and an ordered list of counterparties and contracts. This will allow you to optimize the payment calendar, make decisions about the order in which it is advisable to make payments, which payments can be postponed and which cannot.

Conclusions. Thus, cash flow management is very important part commercial activities of the enterprise. Proper regulation of cash flow will allow the enterprise to develop effectively and avoid crisis situations that may periodically arise in a market economy.

Bibliography

1. Kirichenko, T.V. Financial management [ Electronic resource] : textbook. - Electron. Dan. - M: Dashkov and K, 2011.- P. 144. - Access mode: http://e.lanbook.com/books/element.php?pl1_id=4214;

2. Makhovikova, G. A. Financial management [Text]: a short course of lectures / G. A. Makhovikova, V. E. Kantor. - M.: Yurayt, 2011. - 260 p.

3. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B. "Modern economic dictionary"(INFRA-M, 2006). P. 71-80.

4. Article: How to manage money more effectively (Fedkina O.) ("Consultant", 2012, No. 11)

Every commercial organization is familiar with the concept of cash flow management. This is an important component of the company’s financial management system as a whole. This item can be called the cornerstone in matters of financial success. It includes tools such as determining the optimal level of finance, drawing up budgets, calculating financial cycles, generating forecasts of future cash flows, etc.

From this article you will learn:

Why is proper management of a company's cash flow important?
What is a cash flow management system?
What factors influence the management of enterprise cash flows.
What are the stages of the cash flow management process?
What are the basic principles of cash flow management.
How to analyze a company's cash flows.
What should be effective cash flow management?

Why is proper management of a company's cash flow important?

First, let's figure out what cash flow is. This is a general concept for the sum of all receipts and payments of monetary resources dispersed over time. They are united by a specific financial project or asset. Thus, one organization has several cash flows, and they reflect the economic activities of the enterprise in all its many manifestations. The task of every commercially oriented structure is to manage cash flows with the greatest efficiency. And this means ensuring financial balance or even a budget surplus, constantly balancing between the amount of financial receipts and expenditures, carrying out their time synchronization.

Systematic and effective cash flow management is of great importance for the following reasons:

If we compare an enterprise with an organism, then cash flows can be called the circulatory system of an economic entity, because they “nourish” its activities and make them possible. Without cash flows, it is generally not reasonable to talk about any performance of the company.
Time synchronization of cash flows determines the financial stability of the enterprise and ensures its stability and strategic development. The more successfully the volumes of cash receipts and expenditures are distributed over time, the more successfully the company’s strategic goals are achieved.
If you compare an enterprise to an orchestra, then cash flows become its rhythm section. A uniform, rhythmic flow of cash has a positive effect on the company’s operating process. Violation of the rhythm results in a disruption in the process of forming reserves of raw materials, a decrease in labor productivity, interruptions in the sale of finished products, etc.
If there are timely, rhythmic cash receipts, the enterprise does not have a need for borrowed capital or it is significantly reduced. Cash flow management serves to use internal sources for the development of the company without resorting to lending.
The more time-synchronized cash flows are, the more solvent the enterprise is.
A stable cash flow accelerates the turnover of capital of a commercial organization, thereby reducing the financial cycle and the need for capital for current business activities. This result is achievable with reasonable, competent cash flow management.

Thus, the company is able to extract extra profits thanks to skillful leadership and management of financial flows. An example is the use of idle resources in investment instead of accumulating free balances of the company's current assets.

What is a cash flow management system?

Let's consider the structure of the cash flow management system. If cash flows are the object of management, then the subject is the financial service of the organization. It may look completely different, but its essence is the same - planning the financial activities of an enterprise. If the company is large, then the finance department will have a large number of employees. For small companies, one financial director is enough. There are several options for implementing this function:

the head of the financial and planning departments and the chief accountant - one person (for small enterprises);
the financial planning and operational management department is allocated in the structure of the organization, it is involved in managing cash flows in to a greater extent rather than accounting (for medium-sized enterprises);
The financial director manages not only the financial service, but also the accounting department; at the same time, the company can create a financial planning and operational management department, currency and analytical departments, which will also be subordinate to the financial director (for large enterprises).

The control system itself consists of numerous elements, which include:

software and information support;
regulatory framework;
financial instruments;
financial methods.

These elements should be discussed separately. Thus, the set of financial methods includes the following subsystems:

settlements with creditors and debtors;
interaction with shareholders (investors);
interaction with government agencies;
settlements with credit institutions;
investment;
financing;
taxation, etc.

And each of these subsystems affects the dynamics and structural organization of cash flows.

By the concept of financial instruments we mean not only cash, but also investments, taxes and loans, bills of exchange, dividends, deposits, depreciation rates - all these instruments in one or another combination are present at enterprises in accordance with the characteristics of their activities.

The regulatory framework consists of laws, by-laws, norms and rules, standards established by the state, as well as norms and rules determined by the business entity itself in the charter and local regulations or agreements with counterparties.

The modern economy is so dynamic that effective cash flow management becomes impossible without regular internal company reporting.

So, we have examined the main components of the cash flow management system and now we can determine that this system is a combination of methods and tools for the influence of the company’s financial service on the flow of cash resources in order to achieve the goals set by the management of the enterprise.

Basic principles of cash flow management

In order for cash flow management to be carried out in the most efficient and effective manner, the financial service should adhere to the following basic principles:

Reliability of information.

Management of not only financial resources, but also the enterprise as a whole is based on complete information support. At the moment, it is impossible to create a unified information base for organizations of all types. It should be noted that financial reporting standards at the international level began to be formed only in 1971. Before today this process is not completed, and the standards are still far from perfect. The option that currently exists allows for a variety of methods for determining individual indicators of the reporting system adopted by the company. But not only is the management system accounting will have differences at different enterprises in our country, differences also arise when compared with accounting methods adopted in international practice. That is why, in order to apply the principle of reliability of information support, it is necessary to bring different methods under one denominator, to carry out complex calculations under a unified approach.

Balance.

As you know, every enterprise has many cash flows, and they are all classified on different grounds, while the goals and objectives of the company are uniform. It is necessary to optimize cash flows so that they are balanced in their volumes, time intervals and other characteristics in the process of managing the company.

Efficiency.

The receipt of cash flows is dispersed over time. Due to such unevenness, temporarily free resources are often formed at the enterprise. Money that is not used in a certain period of time can be classified as non-productive assets (since it is not involved in production purposes in a specific period of time). If money is not involved in circulation, then over time it loses its value. This happens for many reasons, the most obvious of which is inflation. To prevent this from happening, it is necessary to distribute funds over time in such a way as to achieve the highest coefficient of their useful use. Investment efficiency is of great importance in order to prevent the depreciation of funds.

Liquidity.

An uneven flow of funds to an enterprise often causes a shortage, creating a negative solvency of the business entity. That is why it is so important to achieve high cash liquidity ratios throughout the entire financial cycle. Liquidity is achieved by synchronizing positive and negative cash flows in separate time intervals of the financial cycle.

What factors influence the management of enterprise cash flows?

Cash flow management is carried out with the aim of best distributing it over time in order to compensate for the unevenness of its receipt by the enterprise. The reasons why the flow of funds cannot be made uniform are objective in nature and are determined by numerous factors of a market economy. Let's consider these factors.

Inconstancy of market conditions. The unevenness of cash flows is mainly determined by changes in the commodity market.
Variability of stock market conditions. It is not only the structure of the commodity market that determines the flow of funds. Cash flows can often be generated through the issue of securities of an enterprise. In addition, if the volume of cash receipts and expenditures is uneven and free balances are formed, it is quite possible to invest resources using stock market instruments. We must also not forget that there are also cash flows that are generated as a result of the company’s securities portfolio in the form of dividends.
The need to pay taxes. This factor generates negative cash flow. And the payment schedule statutory, does not always coincide with the schedule of receipt of financial resources for the enterprise.
Business lending practices. This factor affects both the inflow and outflow of funds. When selling products, we receive a positive cash flow; when purchasing materials, semi-finished products and raw materials, we receive a negative cash flow.
Payment system. There are various payment mechanisms for products and services. For the convenience of consumers, companies try to provide various options payment: cash, securities, other monetary documents. The speed at which funds are received when using these mechanisms also varies.
Possibility of financial lending. The credit market makes lending available to various entities, regardless of their creditworthiness. Cash offers are implemented on different terms and in different volumes. Money received on a loan can be both “expensive” and “cheap”; therefore, the formation of cash flows through lending can also be both positive and negative. So, when amortizing the loan amount, the flow will be considered negative, when receiving a loan - positive.
Providing financing free of charge. Targeted financing is not available to all organizations; we are talking only about state-owned enterprises. It allows you to create a monetary resource that is not due to any additional investments or costs. A pure financial injection that is not associated with negative cash flows.

However, in addition to objective factors of the economy, there are also subjective factors that within the enterprise also influence the formation of cash flows.

Dependence on the life cycle phase. During the life cycle of a company, various cash flows arise, which are differentiated by their types and volumes. According to the stage of development at which this segment time the organization stays, the corresponding volumes and types of positive and negative cash flows are predicted.
Number of revolutions per operating cycle. This value depends on how long the operating cycle of the enterprise is. If it is very short, then the funds invested in current assets will have time to make many revolutions, forming highly intensive cash flows (with a plus and a minus sign).
Depends on the seasons. If a product has seasonal demand or its production is determined by the onset of a specific season, then the formation of cash flows occurs over a certain period of time. Liquidity of resources is considered in separate time intervals. With this type of operation of an enterprise, temporarily free balances of assets inevitably appear, which are advisable to use with maximum benefit. Therefore, cash flow efficiency management plays a significant role here.
Impact of investment programs. If there are any, the company has an urgent need to generate a negative cash flow, which is required by the emergence of a positive cash flow. This relationship significantly affects the operation of the enterprise in terms of generating cash flows.
Depreciation deductions. Features of the company's depreciation policy determine the volume and intensity of depreciation flows, which, in turn, affects the price of products, as well as the profit from its sales.
Operating leverage ratio. Impact given coefficient forms a picture of changes in the volume of product sales and the volume of net cash flow.
Views of the company's financial management. Some people prefer to adhere to conservative methods of doing business, while others prefer aggressive business. Each entrepreneur has his own preferences regarding the sources involved, therefore structural constructions return cash flows will vary, as will the volumes of insurance reserves of some assets, as well as the efficiency of investment activities.

As we can see, the formation of cash flows is influenced by both external and internal factors. And this influence should be taken into account in enterprise management.

What are the stages of the cash flow management process?

So that the cash flow management process (CFM) gives best results, it needs to be made systemic. For this purpose, many enterprises are building an entire management methodology, which is a guide step by step process. Let's consider what stages it consists of.

Stage 1. We are planning the structure of the management system.

To create an optimal plan you should:

Determine the main objectives of the UDP system in order to clearly understand the need of this education. If management is aware of the scale of the problems that can only be corrected by creating a UDP system, then steps in this direction will be much easier to take. The initial stage will be the identification of optimal projects for improving the UDP process at the enterprise.
Build a system of criteria by which achievement can be assessed desired result on cash flow management. The result will be a compiled list of criteria.
Distribute all cash flows in the enterprise by type. The result will be the construction of a comprehensive classification of cash flows; For each type, it will be possible to select the most suitable impact tools in accordance with the assigned tasks. This step will simplify the analysis, planning and accounting of all financial transactions in the enterprise.
Select services that will be directly responsible for providing information, analyzing it, as well as planning and controlling cash flows. The choice of service cannot be random; this step requires a clear justification of the reasons why this or that department can and should be responsible not only for providing information and its analysis, but also for control management decisions V this issue.

Stage 2. We analyze the company’s cash flows over the past period:

First, you need to determine which sources of information are appropriate to work with. They can be both internal and external. The main source is the company’s own financial statements submitted by the accounting department. Collection external information usually handled by the financial analytical service.
Next, cash flow analysis (vertical or horizontal) is carried out. The data contained in internal reporting is analyzed. Horizontal analysis involves the calculation of analytical indicators for items in the form of absolute changes, identifying the reasons for such changes, while vertical analysis examines changes in the structure of cash flows. At the same time, the reasons for the occurrence and expenditure of funds are indicated.
Next step an analysis of factors that influence the receipt and expenditure of resources at the enterprise is carried out. The identified factors are combined into a system that will take into account all the features of the company’s functioning and will help focus attention on specific objects managerial influence.
And finally, all financial indicators are calculated, including indicators of liquidity, turnover and cash flow efficiency, and the place of the identified indicators in the interval between the top and lower boundaries. Analysts try to determine the reasons for data deviations and, accordingly, draw conclusions about the financial condition and solvency of the company.

Stage 3. We are improving the efficiency of cash flows.

Increased efficiency is only possible based on previously collected data.

First of all, the sufficiency of net cash flow is assessed. Determining its value is of great importance, because this is the main indicator of the result of the built cash flow system. If the cash flow is positive, then we can talk about the solvency of the company in a given period of time. Next, the optimal cash balance is calculated.

In optimizing cash flows, it is very important to eliminate the causes that contribute to the formation of negative cash flow or excess net flow. Both options are detrimental to financial situation companies, since one is associated with the depreciation of funds as a result of inflation, and the other is associated with the risk of insolvency.

Stage 4. We plan cash flows by type.

The previous analytical and optimization stages will help identify existing shortcomings in the cash flow management system. To eliminate them, you should:

develop a planning methodology (form of a cash flow plan);
draw up a cash flow plan for the company itself, covering upcoming incoming and outgoing flows in the specified period. Period is the maximum calendar year. It is convenient to break it down into months to simplify analytics. As a result, the drawn up cash flow plan will become integral part enterprise planning systems.

Stage 5. We create a methodology for effective control of cash flows.

Control is measures to verify the execution of management decisions that relate to cash flow. Monitoring the implementation of financial tasks and searching for optimal management solutions to improve the efficiency of cash flows. When changing external or internal factors affecting cash flow, management policies also need to be adjusted.

The UDP methodology consists of these main stages, aimed at balancing the processes in the enterprise carried out in the course of normal business activities.

Cash flow management analysis

Cash flow analysis necessary for a company to eliminate shortages or excesses of cash while maintaining balance. To accomplish this task, it is necessary to identify the reasons for the shortage or excess of resources, the main sources of their receipt and expenditure - all these factors ultimately determine the solvency of the company. Cash analysis is necessary in order to determine the financial stability of an enterprise over a selected period of time, as well as to understand what sources of cash generation the company has and which items spend the most expenses.

Economists use direct and indirect methods for calculating and analyzing cash flows. These methods can be used individually or in combination. They complement each other perfectly and help to create a complete objective picture of cash flow.

Direct method works with figures obtained using current accounting of cash flows in the accounts of the enterprise. The basis is the total revenue from the sale of goods (work, services).

Features of the method:

reflects the directions of resource expenditure and the sources of their occurrence;
identifies the level of solvency of the enterprise;
establishes a correlation between product sales and profit for the reporting period;
identifies the main items of expense and profit;
helps to make forecasts of upcoming cash flows using the information received;
is a tool for controlling negative and positive cash flows, due to their relationship with accounting registers;
facilitates the assessment of the future liquidity of the enterprise, helps determine its solvency in the near future.

The direct method is also commonly called the top method, since the analysis is carried out as if from top to bottom using the profit and loss statement. U this method It also has its drawbacks. With its help, it is quite difficult to determine the relationship between cash flows and the obtained financial results. That is why analysts prefer to supplement it with an indirect method.

Indirect method allows you to analyze the cash flow system by type of activity based on summary reports. The method is based on a study of net profit for a specific type of activity. Cash flow is calculated from this indicator, taking into account adjustments for increases or decreases.

Features of the method:

reflects the relationship between profit and cash flow (you can track where funds were invested and what results they brought);
shows the correlation of own working capital and financial results during operational management;
marks problematic niches in the company’s activities (for example, unused resources), and therefore makes it easier to overcome crisis situations;
allows you to find out the volume of funds received, their sources and the main areas of spending;
identifies the presence of a cash reserve and the ability of the enterprise to ensure the predominance of cash receipts over expenses;
allows you to determine the company’s ability to pay off short-term obligations through accounts receivable payments;
indicates the sufficiency of the net profit received by the enterprise to cover the needs that it currently has;
determines the company’s ability to participate in investment activities using its own resources (depreciation and net profit).

It should be noted that the main document that allows you to fully and objectively analyze cash flows is a standard cash flow statement drawn up in Form No. 4. This report is generated based on direct method and allows you to establish the following indicators that are important for the successful operation of the enterprise:

solvency of the company in the past reporting period;
degree of dependence on borrowed funds;
drawing up a forecast of the state of the enterprise for the coming period;
quality of dividend policy, trends in its development;
the state of the company's cash reserves, the ability to respond flexibly to economic changes;
the degree of participation of own sources in current economic activities;
the ability to provide investment financing.

Cash flow management analysis: stages and indicators

Having found out what the analysis of an enterprise’s cash flows is and having examined its main methods, let’s move on to detailed description analysis process. Typically, it consists of the following steps:

Stage 1. Generating a cash flow report.

At the first stage, this report is analyzed according to certain parameters that allow us to assess the relevance, completeness and reliability of the data used. That is, ODDS is viewed through specialized “economic glasses” with the aim of:

identifying reporting users;
structural analysis;
determining the volume of monetary assets and their composition (the basis is those assets for which financial flows will be considered in the report);
checking the extent of coverage of enterprise expenses and income not related to financial flows;
distribution of all financial flows by areas of activity, including those that cannot be classified (we are talking about taxes, dividend payments, etc.).

Stage 2. Study of the cash flow statement in conjunction with other forms of reporting.

When the ODDS is prepared, you can start reading it from economic point vision.

Stage 3. Analysis of the obtained data.

After reading the report, the analyst has a holistic picture that is subject to comprehensive analysis. Firstly, the financial stability of the organization and its liquidity are determined. Secondly, a search is made for internal reserves to achieve positive dynamics the effectiveness of its activities.

The analysis is carried out using horizontal and vertical methods, with the help of which financial indicators are calculated for the purpose of their further interpretation. A specialist can assess the quality of the net cash flow generated by current operations. Let's call it CHDPT for short. It should be noted that financial indicators will be different for different users of reporting (creditors, government agencies, investors).

For a competent analysis, indicators are needed to assess the “quality” of the PDPT. With their help, you can check the data for reliability, excluding erroneous conclusions on the NPV, as well as liquidity indicators - they reflect the solvency of the enterprise at a given stage of development.

Solvency ratio (1) = (DSNP + DS inflow for the period) / DS outflow for the period.

Solvency ratio (2) = Inflow of DS for the period / Outflow of DS for the period.

The solvency ratio (1) shows how capable the company is of making payments using receipts for the period, as well as cash and non-cash balances. This coefficient must be greater than one.

Self-financing interval (1) = (DS + Short-term financial investments + Short-term receivables) / Average daily expense of DS.

Average daily expense = (Cost of sales + Selling expenses + Administrative expenses - Depreciation) / n,

where n = 30 days, with a period of time equal to a month; n = 90 days, with a period of time equal to a quarter; n = 360 days, with a period of time equal to a year.

Self-financing interval (2) = (DS + Short-term financial investments) / Average daily expense of DS.

Beaver Ratio = (Net Income + Depreciation) / Long-term and short-term liabilities.

By calculating this coefficient, we can quite reliably form an idea of the solvency of the organization. If the company is successful, then the coefficient will be at the level of 0.4-0.45.

Cash inflow coverage ratio for short-term liabilities = (Net profit + Depreciation) / Current liabilities.

Interest coverage = NPA before interest and taxes / Amount of interest paid.

This indicator serves to determine the organization’s ability to pay interest at the expense of the cash flow, without violating its obligations to partners to pay interest for the use of their funds. Situations often occur when the annual report in Form No. 2 shows a profit much higher than the amount of interest on the loan, but despite this, the company cannot cover its costs of attracting external debt financing due to a negative net income.

Self-financing potential = NPV / Long-term accounts payable.

Can the company independently fulfill its obligations to the owners of the authorized capital and pay them dividends on time? To answer this question, you need to have information about the results of financial and economic activities for the previous period and calculate the dividend coverage ratio I for all types of shares:

Dividend coverage ratio I = NPV before payment of dividends and after taxes and interest / Total amount of dividends payable.

This formula can be applied both for the general calculation of dividends paid and for determining the ability to pay dividends for each specific group of shares (preferred, ordinary). This indicator is of particular interest to business owners.

Dividend Coverage Ratio II = NPA before payment of dividends and after taxes and interest / Amount of dividends payable on common shares.

Before calculating this indicator, the NPV should be determined based on the results of the reporting period (as a rule, it is reflected in the organization’s annual report). With a stable dividend policy, you can use current information on payments; they should not change. In the absence of stability in this matter, economists make forecasts regarding future payments.

Let's give an example. For all liquidity indicators, it was revealed that the organization is strictly dependent on external sources receipt of funds, and therefore there is a need to control the timing of debt repayments by calculating the potential coefficients of such maturities. But if during the business year the company does not have overdue debts and the net income shows steady growth, we can conclude that the company will have access to the option of operating on the basis of self-financing, and the terms of payments will not be violated.

Investment efficiency indicators.

These indicators reflect the organization’s ability to operate on a self-financing basis and cover its own investments. Not every enterprise can manage without attracting external investment.

It is important to consider investment performance indicators in dynamics, since they differ in different periods. It is advisable to compare the intensity of capital investments annually.

By the following formula you can calculate an indicator that reflects how actively the NDPT is involved in covering the deficit net cash flow from investment investments (NDCI):

Cash reinvestment ratio = NDPI / NDPT.

In the case when a company invests non-current assets through disinvestment, the NDI will be greater than 0. In this situation, the cash reinvestment ratio should not be calculated.

In the period under review, such a calculation will show that the NPV is 100% reinvested.

If the deficit NDPI is many times higher than the NDPT, then when reinvesting funds from current activities, the outflow of funds is covered by attracting external financing.

In cases where a company invests using internal resources, without resorting to external sources, the degree of coverage of investment investments will have high indicators:

Degree of investment coverage = NPV / Total investment amount.

When the ability to invest is assessed based on the cash inflow from reducing previous investments, i.e., disinvestment (for example, from the sale of equipment), it is advisable to determine the following indicator (net investment):

Net investment coverage rate (net investment) = NPV / Net investment

To see how significantly investments in investments for new projects have decreased, a formula is used that contrasts the outflows of funds for new investment projects and the inflows of funds associated with the reduction of previous investment investments:

Degree of investment financing - net = Cash outflows in connection with new investments / Inflows in connection with the reduction of previous investments.

Main indicators of the financial policy of the enterprise.

If you contrast the figures from the cash flow statement reflecting the sources of financing, you can get complete picture about the financial policy of the organization and determine the place of each source of financing in the overall structure of the company’s activities. By analyzing the volume of funding sources over a specific period of time, the specialist concludes what place the organization occupies in the capital market.

The ratio of the amount of internal and external financing = NPV (or all internal financial sources) / Total amount of external financing.

The total amount of external financing is the totality of all cash receipts associated with an increase in loans and equity capital (for example, through additional issue of securities).

The position of an organization in the market is largely determined by the results of an analysis of the volume of sources of financing it uses in the context a certain segment time.

In some cases it is advisable to devote Special attention studying the structure of external financing. This can be done using the following formula:

Share of own source of external financing in total amount external financing = Cash inflow due to growth of equity capital / Total amount of external financing.

The share of a borrowed source of external financing in the total amount of external financing is equal to the ratio of the volume of financial receipts from an increase in borrowed capital to total value external financing.

The ratio of own and borrowed sources of financing = Cash inflow due to the growth of equity capital / Cash inflow due to the growth of borrowed capital.

Determination of profitability.

Standard profitability formulas are examined together with the calculation of financial indicators of return on total capital and equity (unborrowed) capital. The income received for a specific period (NII) is adjusted for non-monetary items and then divided by the arithmetic mean of all values of individual types of assets and liabilities.

Return on total capital = NPV x 100 / Value of all assets.

For equity, the same formula is used, only the denominator indicates the amount of equity. The obtained value clearly demonstrates the proportion in which the company’s internal capital participated in a certain period in the formation of the financial position of the enterprise:

Return on equity = NPV x 100 / Equity.

4. Analysis of the properties of revenue.

Proceeds from the sale of products (works, services) may have different quality. It is not difficult to determine using the formula presented below as the amount of discrepancy between financial revenue (from payments) and accounting data.

Indicator of “quality” of proceeds from the sale of goods (works, services) = Cash inflow in the form of proceeds from the sale of goods / Revenue from the sale of goods, including VAT.

This formula operates on data from a cash flow statement prepared using the direct method, provided there is reliable information about the proceeds from the sale of work, services or goods, including VAT.

All of these indicators play an important role in analyzing the financial condition of an enterprise; they complement the set of classic ratios and focus attention mainly on the quality of the company’s cash flows and their development trends.

Expert opinion

What you need to make a cash flow forecast

Ekaterina Kalikina,

Financial Director of Grant Thornton, Moscow

Operational activities are usually planned. A forecast of future cash flows during current operating activities can be made based on the volume of sales that is planned in future reporting periods (or from the planned net profit). Let us present the calculation algorithm.

1. Cash receipts.

First, you need to calculate how much money the company received. It can be done:

Method 1. Based on the planned indicator for repayment of receivables.

PDSp = ORpn + (ORpk Î CI) + NOpr + Av, Where

PDSP – planned revenue from sales of products in the planning period;
ORpn – planned volume of product sales for cash;
ORpk – volume of product sales on credit in the planning period;
CI – planned receivables repayment ratio;
NOpr - the amount of the previously outstanding balance of receivables subject to payment as planned;
Av is the planned amount of cash receipts in the form of advances from customers.

Method 2. Based on accounts receivable turnover.

The planned debit debt is determined by the following formula (taking into account the end date of the planning period):

DBkg = 2 Î SrOBDB: 365 days Î OP – DBng, Where:

DBkg – planned receivables at the end of the planning period;
SrOBDB – average annual turnover of accounts receivable;
OR – planned volume of product sales;
DBng – accounts receivable at the end of the plan year.

Along with the planned debt, the formula also determines the planned volume of revenues in the course of current economic activities:

PDSp = DBng + ORpn + ORpk – DBkg + + NOpr + Av.

It should be remembered that the company’s cash receipts largely depend on the terms of the provision of trade credit under sales and purchase agreements. What is the company's credit policy, so is the volume of income. Credit policy is subject to adjustment.

2. Expenses.

The amount of cash expenses at the enterprise is determined as follows:

RDSp = OZp + Ndd + NPp – AOp, Where:

RDSp is the planned amount of cash expenditures as part of operating activities in the period;
OZp is the planned amount of operating costs for production and sales of products;
AIT – the planned amount of taxes and fees paid from income;
NPP – the planned amount of taxes paid from profits;
АОп – the planned amount of depreciation charges from fixed assets and intangible assets.

OZp = ∑(PZni + OPPni) О OPni + ∑(ЗРni О OPni) + + ОХЗn, Where:

PZni is the planned amount of direct costs for the production of a unit of production;
GPZni – the planned amount of overhead costs for the production of a unit of product;
OPni – planned volume of production of specific types of products in physical terms;
ЗРni – planned amount of costs for selling a unit of production;
ORni – planned volume of sales of specific types of products in physical terms;

ОХЗn – the planned amount of general business expenses of the enterprise (administrative and managerial expenses for the enterprise as a whole).

At the same time, the AIT indicator is calculated according to the planned volume of sales of products by type, taking into account VAT and other taxes and fees. Based on the established deadlines for paying tax contributions, an appropriate payment schedule is formed.

The NPP indicator is calculated using the formula: NPp = (VPp Î NP) + PNPp, Where:

GPP is the planned amount of gross profit of the enterprise, which is ensured through operating activities;
NP – profit tax rate (in%);
PNPp - the amount of other taxes and fees paid by the organization in the corresponding period at the expense of profits.

What should be effective cash flow management?

We can speak about the effectiveness of the cash flow management system only in cases where the accounts receivable at the enterprise are not neglected and are as effectively controlled as cash transactions and accounts payable. All these factors are interconnected, and together they form an effective and efficient financial management system in the company. The key points of this system are:

the shortest time interval between the receipt of receivables and the repayment of accounts payable, and the former should always be ahead. Such synchronization of positive and negative cash flows makes it possible to achieve a maximum reduction in the balance of funds in the organization’s current account and to use internal resources, without resorting to borrowing (or reducing their participation), reduce debt servicing costs;
making all payments under the strict control of management;
concluding factoring transactions (sale of receivables);
development of a discount system for buyers who pay for products (works, services) ahead of schedule;
maintaining an acceptable level of accounts receivable through the development and compliance with financial policies;
diversification of products in order to attract the largest number buyers; this measure is designed to reduce the risk of non-payment for products by any counterparties;
development of flexible pricing policy.

This type of cash flow management can be called ineffective in which:

there are delays in payment of wages;
accounts payable are growing not only to partners, but also to the state;
the volume of overdue debt on bank loans is growing;
asset liquidity is steadily declining;
The duration of the production cycle is too long due to unstable supplies of raw materials, materials, semi-finished products and energy resources.

Information about the experts

Ekaterina Kalikina, financial director of Grant Thornton, Moscow. Grant Thornton International is an international organization uniting independent auditing, accounting and consulting firms providing audit, tax and consulting services to private and public companies. Grant Thornton member firms provide services in more than 100 countries and employ more than 31,000 people. The total income of the organization's member firms from the provision of international services in 2011 amounted to 3.8 billion US dollars.

Financial management: lecture notes Ermasova Natalya Borisovna

Topic 2. Organizational cash flow management

2.1. The essence of cash flow

Figuratively, cash flow can be represented as the “financial circulation” system of the economic body of an enterprise. Effectively organized cash flows of an enterprise are the most important symptom of its “financial health”, a prerequisite for achieving high final results its economic activities as a whole.

Cash flow management is not just survival management, but dynamic capital management that takes into account changes in value over time. In the process of circulation, working capital inevitably changes its functional form and as a result of the sale of finished products are converted into cash. Funds are mainly stored in the enterprise's settlement (current) account with a bank, since a significant part of settlements between business entities is carried out non-cash. Small amounts of cash are kept in the company's cash register. In addition, buyers' funds may be held in letters of credit and other forms of payment until they expire.

Thus, the cash accounted for in current assets includes: cash desk, current account, foreign currency account, other funds, as well as short-term financial investments.

Cash- these are the most liquid assets, which in a certain amount must always be present in the current assets, otherwise the enterprise will be declared insolvent.

Cash management is carried out using cash flow forecasting, i.e. receipt (inflow) and use (outflow) of funds. Determining cash inflows and outflows in conditions of instability and inflation can be very difficult and not accurate enough, especially for the financial year.

The amount of expected cash receipts from sales of products is calculated taking into account the average term for payment of bills and sales on credit. The change in accounts receivable for the selected period is also taken into account, which may increase or decrease cash inflows. In addition, the impact of non-operating transactions and other income is determined.

At the same time, an outflow of funds is predicted, i.e. expected payment of invoices for received goods (services), mainly repayment of accounts payable. Payments to the budget, tax authorities, dividends, interest, remuneration of enterprise employees, possible investments and other expenses are provided.

As a result, the difference between the inflow and outflow of funds is determined - net cash flow with a plus or minus sign. If the outflow amount is larger, then the amount of short-term financing in the form of a bank loan or other income is calculated to ensure the predicted cash flow.

The forecast of expected receipts and payments is drawn up in the form of analytical tables broken down by month or quarter. Based on the amount of net cash flows, it is accepted necessary measures on optimizing cash management.

Analysis and management of cash flow make it possible to determine its optimal level, the ability of the enterprise to pay off its current obligations and carry out investment activities. The financial condition of the company and the ability to quickly adapt in cases of unforeseen changes in the financial market depend on the effectiveness of cash management.

Cash flow management is part of financial management and is carried out within the framework of the financial policy of the enterprise, understood as the general financial ideology that the enterprise adheres to in order to achieve the general economic goal of its activities. The objective of financial policy is to build an effective financial management system that ensures the achievement of strategic and tactical goals of the enterprise.

In the activities of any enterprise, the three most important financial indicators are:

1) proceeds from sales;

2) profit;

3) cash flow.

The set of values of these indicators and trends in their changes characterizes the efficiency of the enterprise and its main problems.

Let's look at the difference between cash flow and profit.

Revenue - accounting income from the sale of products or services for a given period, reflecting both monetary and non-monetary forms of income.

Profit - the difference between recorded sales income and expenses accrued on products sold.

Cash flow - the difference between all funds received and paid by an enterprise for a certain period.

Cash flow An enterprise is a set of cash receipts and payments distributed over time generated by its economic activities.

The difference between the amount of profit received and the amount of cash is as follows:

– profit reflects cash and non-cash income recorded during a certain period, which does not coincide with the actual receipt of cash;

– profit is recognized after the sale is completed, and not after the receipt of funds;

– when calculating profit, production costs are recognized after their sale, and not at the time of payment;

– cash flow reflects the movement of funds that are not taken into account when calculating profit: depreciation, capital expenditures, taxes, fines, debt payments and net debt, borrowed and advanced funds.

Cash is the most liquid part of working capital. This is what is used to pay all obligations. Cash flow management is closely related to the strategy of increasing the market value of a company, since the market value of a company or asset depends on how much an investor is willing to pay for it, which, in turn, depends on what cash flows and risks the asset or company will bring to the investor in future.

Thus, the market value of an asset or company is determined by:

– the cash flow generated by the asset or company in the future;

– distribution of this cash flow over time;

– risks associated with the generated cash flow.

Financial resources related to distribution are important element reproduction and form the basis of the enterprise’s material and cash flow management system. The financial resources of an enterprise are in constant motion, which is managed within the framework of financial management. In turn, the cash flows of an enterprise represent the movement (inflows and outflows) of funds on the settlement, currency and other accounts and at the cash desk of the enterprise in the course of its business activities, collectively constituting its cash turnover. In this regard, the pace of strategic development and the financial stability of the enterprise are largely determined by the extent to which inflows and outflows of funds are synchronized with each other in time and in volume, since a high level of such synchronization contributes to the accelerated implementation of selected goals.

Indeed, the rational formation of cash flows ensures the rhythm of the enterprise’s operating cycle and the growth of production and sales volumes. At the same time, any violation of payment discipline negatively affects the formation of production reserves of raw materials and supplies, the level of labor productivity, sales of finished products, the position of the enterprise in the market, etc. Even for enterprises that successfully operate in the market and generate a sufficient amount of profit, insolvency can arise as a result of an imbalance of various types of cash flows over time.

An important factor in accelerating the turnover of an enterprise's capital is cash flow management. This occurs due to a reduction in the duration of the operating cycle, a more economical use of own funds and a reduction in the need for borrowed sources of funds. Consequently, the efficiency of the enterprise depends entirely on the organization of the cash flow management system. This system is created to ensure the implementation of short-term and strategic plans of the enterprise, maintaining solvency and financial stability, more rational use of its assets and sources of financing, as well as minimizing the costs of financing business activities.

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In foreign practice, cash flows are referred to as cost indicators of an organization’s growth, since they show how much funds are at the disposal of the enterprise to ensure its entry into new markets, the production of new products, the implementation of progressive developments and development projects.

The essence of cash flow management

One of the areas of financial management of an enterprise is the effective management of its cash flows.

One of the tasks of cash flow management is to identify the relationship between cash flows and profits, i.e. whether the profit received is the result of effective cash flows or is it the result of some other factors.

In Russia, the category “cash flows” has acquired important. This is evidenced by the fact that since 1995. An additional form No. 4 “Cash Flow Statement” was introduced into the financial statements, which explains the changes that occurred with cash. It provides users of financial statements with a basis for assessing an entity's ability to raise and use cash.

The difference between the amount of profit received and the amount of cash is as follows:

Profit reflects accounting cash and non-cash income during a certain period, which does not coincide with the actual receipt of cash;

When calculating profit, production costs are recognized after their sale, and not at the time of payment;

Cash flow reflects the movement of funds that are not taken into account when calculating profit: depreciation, capital expenditures, taxes, penalties, debt payments and net debt, borrowed and advanced funds.

Current activity includes the receipt and use of funds to ensure the performance of basic production and commercial functions. At the same time, the “inflow” of cash will be the proceeds from the sale of products in current period, repayment of accounts receivable, proceeds from barter sales, advances received from the buyer. The “outflow” of funds occurs in connection with payments on the accounts of suppliers and contractors, with the payment of wages, contributions to the budget and extra-budgetary funds, payment of interest on loans, and contributions to the social sphere.

Since the company's core business is the main source of profit, it should also be the main source of cash.

Investment activities includes the receipt and use of funds associated with the acquisition, sale of long-term assets and income from investments. In this case, “inflows” of cash are associated with the sale of fixed assets, intangible assets, with the receipt of dividends, interest on long-term financial investments, and with the return of other financial investments. “Outflows” of funds are explained by the acquisition of fixed assets, intangible assets, capital investments, and long-term financial investments. Since, with the successful conduct of business, the company strives to expand and modernize production facilities, investment activities in general lead to a temporary outflow of funds.

Financial activities includes cash inflows as a result of obtaining loans or issuing shares, as well as outflows associated with the repayment of debt on previously received loans and the payment of dividends.

“Inflows” of funds can be due to short-term loans and borrowings, long-term loans and borrowings, proceeds from the issue of shares, and targeted financing. “Outflows” of funds occur in connection with the repayment of short-term loans and borrowings. Repayment of long-term loans and borrowings, payment of dividends, repayment of bills.

Let's give characteristics of the main types of cash flows of the enterprise . It is proposed to classify cash flows according to the following main criteria:

1. According to the scale of servicing the economic process:

Cash flow for the enterprise as a whole. This is the most aggregated type of cash flow, which accumulates all types of cash flows serving the economic process of the enterprise as a whole;

Cash flow for certain types of economic activities of the enterprise. This type of cash flow characterizes the result of differentiation of the total cash flow of an enterprise in the context of individual types of its economic activities;

Cash flow for individual structural divisions of the enterprise. Defines it as an independent object of management in the system of organizational and economic structure of an enterprise;

Cash flow for individual business transactions. It should be considered as the primary object of independent management.

2. By type of economic activity:

Cash flow from operating activities. Characterized by cash payments to suppliers of raw materials; third-party providers of certain types of services; staff salaries; tax payments.

Cash flow from investing activities. Characterizes payments and receipts of funds associated with the implementation of real and financial investments, the sale of retiring fixed assets and intangible assets.

Cash flows from financing activities. Characterizes receipts and payments of funds associated with attracting additional share capital and share capital, obtaining long-term and short-term loans and borrowings.

3. By direction of cash flow:

Incoming cash flow, which characterizes the totality of cash receipts to the enterprise from all types of business transactions: issue of new shares, new borrowed capital, repayment of accounts receivable, cash sales, property sales;

Outgoing cash flow characterizing the totality of cash payments by an enterprise in the process of carrying out all types of its business operations (“cash outflow”): fixed assets, financial investments, payment of wages, payment of dividends, repayment of accounts payable, repayment of bank loans and loans, taxes , cash payments.

4. According to the volume calculation method:

Gross cash flow. Characterizes the entire totality of receipts or expenditures of funds in the period of time under consideration in the context of its individual intervals;

Net cash flow (NCF). Characterizes the difference between positive cash flows (PCF) and negative cash flows (NDF) in the analyzed period of time.

NDP = DDP – EDP

Net cash flow is the most important result of the financial activity of an enterprise, largely determining the financial balance and the rate of increase in its market value. It can be either positive or negative.

1. According to the time estimation method:

Real cash flow characterizes the flow as a single comparable value, reduced in value to the current moment time;

Future cash flow characterizes the flow as a single comparable value, reduced in value to a specific future point in time.

2. According to the continuity of formation in the period under review:

Regular cash flow characterizes the receipt and expenditure of funds for individual business transactions (cash flows of one type), which in the period of time under review is carried out continuously at separate intervals of this period. Flows associated with servicing financial credit in all its forms; cash flows ensuring the implementation of long-term real investment projects.

Discrete cash flow characterizes the receipt or expenditure of funds associated with the implementation of individual business transactions of the enterprise in the period of time under consideration.

They differ only within a specific time interval.

3. According to the stability of formation time intervals:

Regular cash flow at regular intervals within the period under review;

Regular cash flow with uneven time intervals within the period under review. A schedule of leasing payments for leased property at uneven time intervals agreed upon by the parties.

Cash flows in the activities of an enterprise significantly affect the service of the organization, its financial stability, and rhythm. Effective cash flow management reduces the enterprise's need for capital, accelerates the turnover of funds, and contributes to the expansion of production scale.

Thus, the cash flow management system at an enterprise is a set of methods, tools and specific techniques for targeted, continuous influence by the financial service of the enterprise on cash flow to achieve the set goal.

Effective cash flow management increases the degree of financial and operational flexibility of the company, as it leads to:

Improving operational management, especially in terms of balancing income and expenditure of funds;

Increasing sales volumes and optimizing costs due to greater opportunities to maneuver company resources;

Increasing the efficiency of managing debt obligations and the cost of servicing them, improving the terms of negotiations with creditors and suppliers;

Creating a reliable basis for assessing the performance of each of the company’s divisions and its financial condition as a whole;

Increasing the company's liquidity.

As a result high level synchronization of receipts and expenditures of funds in volume and time allows to reduce the real need of the enterprise for current and insurance balances of monetary assets serving the main activity, as well as a reserve of investment resources for making real investments.

Enterprise cash flow management

Enterprise cash flow management process

Cash flow management is one of the main activities of the company. Cash flow management includes calculating the timing of cash circulation (financial cycle), analyzing cash flow, forecasting it, determining the optimal level of cash, drawing up cash budgets, etc.

Cash flow management of any commercial organization is an important part common system management of its financial activities.

Cash flow management allows you to solve various problems of financial management and is subordinated to its main goal.

The main goal of cash flow management is to ensure the financial balance of the enterprise in the process of its development by balancing the volume of cash receipts and expenditures and their synchronization over time.

Cash flow management involves analyzing these flows, accounting for cash flows, and developing a cash flow plan. In world practice, cash flows are referred to as “cash flow”.

Cash flow management process The enterprise is based on certain principles, the main of which are:

1. The principle of information reliability. Like every management system, cash flow management must be provided with the necessary information base. The source of information for analyzing cash flows is, first of all, the cash flow statement (formerly Form 4 of the balance sheet), the balance sheet itself, the statement of financial results and balance sheet applications.

2. The principle of ensuring balance. Enterprise cash flow management deals with many types and varieties of enterprise cash flows. Their subordination to common management goals and objectives requires ensuring a balance of the enterprise's cash flows by type, volume, time intervals and other significant characteristics. The implementation of this principle is associated with the optimization of the enterprise's cash flows in the process of managing them.

3. The principle of ensuring efficiency. Cash flows are characterized by significant unevenness in the receipt and expenditure of funds across individual time intervals, which leads to the formation of volumes of temporarily free funds. Essentially, these temporarily free cash balances are in the nature of unproductive assets (until they are used in the economic process), which lose their value over time, from inflation and for other reasons. The implementation of the principle of efficiency in the process of managing cash flows is to ensure their effective use through financial investments of the enterprise.

4. The principle of ensuring liquidity. The high unevenness of certain types of cash flows gives rise to a temporary cash shortage, which negatively affects the level of its solvency. Therefore, in the process of managing cash flows, it is necessary to ensure a sufficient level of liquidity throughout the entire period under review. The implementation of this principle is ensured by appropriate synchronization of positive and negative cash flows in the context of each time interval of the period under consideration.

Taking into account the principles considered, a specific process for managing the cash flows of an enterprise is organized.

Cash flow management system

If the object of management is the cash flows of an enterprise associated with the implementation of various economic and financial transactions, then the subject of management is the financial service, the composition and number of which depends on the size, structure of the enterprise, the number of operations, areas of activity and other factors:

1. in small enterprises, the chief accountant often combines the functions of the head of the financial and planning departments;

2. in the middle ones - accounting, financial planning and operational management departments are highlighted;

3. in large companies The structure of the financial service is significantly expanding - under the general leadership of the financial director there are accounting departments, financial planning and operational management departments, as well as an analytical department, and a securities and currencies department.

As for elements of a cash flow management system, then these should include financial methods and instruments, regulatory, information and software:

· among the financial methods that have a direct impact on the organization, dynamics and structure of the enterprise’s cash flows, one can highlight the system of settlements with debtors and creditors; relationships with founders (shareholders), counterparties, government agencies; lending; financing; fund formation; investment; insurance; taxation; factoring, etc.;

· financial instruments combine money, loans, taxes, forms of payment, investments, prices, bills and other stock market instruments, depreciation rates, dividends, deposits and other instruments, the composition of which is determined by the peculiarities of the organization of finances in the enterprise;

· legal and regulatory support of an enterprise consists of a system of state legislative and regulatory acts, established norms and standards, the charter of an economic entity, internal orders and regulations, and a contractual framework.

In modern conditions, a necessary condition for business success is the timely receipt of information and a prompt response to it, therefore an important element of managing the cash flows of an enterprise is intercompany reporting.

Enterprise cash flow planning