scholarly journals MANAGEMENT OF THE COMPANY'S FINANCES WITH THE OBJECTIVE OF ESTABLISHING SUSTAINABLE CONTINUOUS LIQUIDITY AND FINANCIAL STABILITY UNDER GLOBAL PROCESSES

2021 ◽  
Vol 14 (28) ◽  
Author(s):  
Slobodan Subotić ◽  
Goran Mitrović ◽  
Vitomir Starčević
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Global Market ◽  
Global Changes ◽  
Successful Management ◽  
Current Form ◽  
Financial Position ◽  
Doing Business ◽  
A Company ◽  
Adequate Management

Globalization, in its current form, represents a new dynamic complex, especially when it comes to its implications for the economy and business of economic entities. It manifests its implications not only through competition, but also through economic growth and development. A modern company should provide adequate management that is able to create and develop comparative advantages that will enable it to be actively involved in global market flows. Global changes have conditioned a new way of doing business, and thus a significant turn in the approach to financial management. This has led to changes in the basic economic settings and criteria for successful management and business. The financial position of a company is one of the indicators of the company's success to function in a global and turbulent market environment. Starting from this fact, a practical treatment of this problem and analytical indicators of the financial position of the three dependent production companies operating within the MH Elektroprivreda Republike Srpske will be done. The aim of the research is to show the extent to which the management of these companies has accepted the requirements of global economic processes and adapted their business to them. That is, whether financial management provides a satisfactory level of liquidity and financial stability of these three companies.

scholarly journals FACTORS ENSURING ENTERPRISE FINANCIAL STABILITY IN TIMES OF CRISIS

2020 ◽  
Vol 139 (5) ◽  
pp. 121-129
Author(s):  
Iryna M. Miahkykh ◽  
Mariana S. Shkoda ◽  
Andrii О. Radchenko
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Company Performance ◽  
Internal Environment ◽  
Working Capital ◽  
Negative Effects ◽  
Effective Response ◽  
Factors Affecting ◽  
Financial Position ◽  
A Company

The insufficiency or lack of available diagnostic instruments to predict the probability of a company bankruptcy is associated with the absence of practices to capture downturn trends in financial and business performances which translates into a dangerous process of latent transition from the company temporary local inability into the total failure to meet its obligations, that is, to a loss of financial stability. The fundamental premises of this study is to identify the factors that ensure financial stability of an enterprise. To attain the research objectives, the method of statistical analysis and logical generalization has been employed to consider a pull of enterprises that are losing their solvency and are on the verge of bankruptcy; a substrate approach was implemented to justify and group a range of internal and external factors affecting the enterprise financial stability. This article argues that a critical indicator in evaluation of a company performance is assessing its financial position which affects its competitiveness, and guarantees to all parties and business participants (both the enterprise and partners) that the realization of common economic interests will be effective. The company financial and economic position when its solvency remains constant over time together with an optimal ratio of equity to debt capital is a certain indicator of a company financial stability. Most analytical studies on enterprise financial stability view the amount, allocation and use of working capital as the most significant indicators, their accounting provides further opportunities to evaluate financial stability and financial position of an enterprise, as well as to identify potential problems and concerns that will lay the basis for choosing a relevant crisis management strategy aimed at designing and implementing effective pathways to respond to crisis. Undoubtedly, it is advisable to obtain an aggregated index that takes into account all the enterprise activities. Such index should include the following indicators: working capital availability; return on capital; independence on external financing. Thus, the essential factors in enhancing the enterprise financial management in a market environment are continuous planned analysis and timely diagnosis of changes and trends in the enterprise external and internal environment, as well as timely and maximum effective response to such changes to ensure financial stability and solvency of the enterprise. In the current business realia, characterized by a high level of economic uncertainty, achieving strategic financial goals and ensuring long-term financial stability of an enterprise is impossible without building an effective strategic financial management framework, the integral elements of which are the mechanisms and systems of risk management to prevent a drop in financial stability and mitigate shocks from external and internal environment negative effects on enterprise activity, as well as creating favourable environment for efficient decision making and planned actions to promote enterprise development.

scholarly journals Methodological Aspects Concerning Evaluation of the Financial Stability of Companies in the Crisis Economy Conditions

2020 ◽  
Vol 8 (16) ◽  
pp. 513-527
Author(s):  
Elena V Levkina ◽  
Zhanna I Lyalina ◽  
Ekaterina A Kurasova
Keyword(s):  
Economic Crisis ◽  
Russian Federation ◽  
Financial Stability ◽  
Financial Condition ◽  
Current Period ◽  
Doing Business ◽  
The Status ◽  
The Russian Federation ◽  
Methodological Aspects ◽  
A Company

The financial stability of a company is one of the most important criteria for assessing the situation of enterprises both for the current period and for subsequent periods of functioning. Of course, every enterprise wants to have business liquidity, otherwise the basis of entrepreneurship collapses; however, the purpose of doing business is to make a profit. An enterprise can make good profits, but at the same time have large liabilities, that is, debts. In this case, it is difficult to call the company financially stable. The onset of the economic crisis in the Russian Federation only prompts the conduct of such studies. Firstly, because it is necessary to understand how the situation in the country's economy as a whole affects a single enterprise, and secondly, what the prerequisites for this influence can be noticed in advance and how to try to prevent them. The relevance of this study lies in the fact that today in Russia there are a number of difficulties with assessing the status of organizations and their adequate comparison with reality. There are many different methods for assessing the financial condition and, in particular, the financial stability of a company. However, when choosing one of them, it is necessary to consider them in order to identify the shortcomings of their application to certain market conditions. Identification of these disadvantages of different theories will allow us to competently and reliably analyse the financial condition of various companies. It is also worth noting that this topic is relevant not only for the companies themselves. The presence of positive dynamics of financial stability indicators as an integral part of the financial condition of the enterprise is one of the most important bases of investment attractiveness. Therefore, not only a company itself is interested in such studies in the inside, but also other market entities from the outside.

scholarly journals The usage of economic profit and other forms of profit as a part of prediction models to forecast the financial stability of business entities in the context of globalization

2021 ◽  
Vol 92 ◽  
pp. 02025
Author(s):  
Dusan Karpac ◽  
Iveta Sedlakova
Keyword(s):  
Financial Stability ◽  
Prediction Models ◽  
Value Added ◽  
Global Market ◽  
Financial Health ◽  
Continuous Change ◽  
Economic Profit ◽  
Business Entities ◽  
Global World ◽  
A Company

Research background: Predicting financial health of a company is in this global world necessary for each business entity, especially for the international ones, as it´s very important to know financial stability. Forecasting business failure is a worldwide known term, in a global notion, and there is a lot of prediction models constructed to compute financial health of a company and, by that, state whether a company inclines to financial boom or bankruptcy. In the current global world of uncertainty and continuous change, it is in each business’s interest to improve its performance. Businesses have to adapt to changing market conditions and keep moving to maintain their, either local or global, market position. In the past, entities preferred to increase primary accounting profit forms. The global modern goal of enterprises, value creation, is achieved through the concept of economic profit. Purpose of the article: The aim of this article was to find out the connection between two very important terms for the global economy, namely prediction models and economic profit. Methods: We focused on the research of both areas and looked for a common connection through how often different forms of profit, and especially the form of economic profit, are used in individual prediction models among the examined sample. Findings & Value added: The output of the whole article is the finding the division of the use of economic and accounting profit in the sample of models and the importance of economic profit for mathematical constructions of prediction models.

scholarly journals Prediction of Financial Health of Business Entities of Selected Sector Using Balance Analysis II. by Rudolf Doucha and Verification of Its Predictive Ability through ROC

2021 ◽  
Vol 91 ◽  
pp. 01006
Author(s):  
Dusan Karpac ◽  
Viera Bartosova
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Prediction Models ◽  
Predictive Ability ◽  
Business Failure ◽  
Financial Health ◽  
Balance Analysis ◽  
Business Entities ◽  
The Given ◽  
A Company

Forecasting business failure is a worldwide known term, in a global notion, and there is a lot of prediction models constructed to compute financial health of a company and, by that, state whether a company inclines to financial boom or bankruptcy. A healthy financial management of a business entity is very important for the proper operation of the business, and it is therefore very important to know how to assess financial health and to anticipate possible problems that will be easier to eliminate in advance. Globalized prediction models compute financial health of companies, but the vast majority of models predicting business failure are constructed solely for the conditions of a particular country or even just for a specific sector of a national economy. Predictive models can indicate whether an entity tends to prosper or bankruptcy, and so we can assess the financial health of the business. This paper provides a description of the balance analysis II. by Rudolf Doucha, discusses its application to a sample of 266 Slovak subjects and points to its prediction in the given field. The verification of the ability to forecast bankruptcy or financial stability has been evaluated through ROC analysis.

scholarly journals OPTIMIZATION OF FINANCIAL STABILITY OF THE ENTERPRISES AGRARIAN BUSINESS OF THE REGION

2018 ◽  
Vol 6 (4) ◽  
pp. 6-10
Author(s):  
Николай Барышников ◽  
Nikolay Baryshnikov ◽  
Денис Самыгин ◽  
Denis Samygin ◽  
Наталья Толмачева ◽  
...  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Industrial Complex ◽  
Considerable Part ◽  
Agricultural Enterprises ◽  
Agrarian Sector ◽  
Financial Position ◽  
Agrarian Policy ◽  
Time Availability ◽  
Stimulation Of

The problem of increase in financial stability of the enterprises of agrarian business designated by the state priorities of stimulation of investment attractiveness of agriculture rises. It is shown that the applied measures of state support are directed only to creation of conditions on attraction to the agrarian sector of loan resources, but poorly influence increase in financial stability of producers and do not guarantee them approval of the credit application from bank. It is revealed that the main share of support of crediting is received by large agroholdings, a considerable part of farms is deprived of such means. Need of a different approach to realization of agrarian policy on increase in availability of the credit and corresponding to them budgetary resources on the basis of optimization of financial stability of agricultural enterprises is proved. On the example of the agricultural organizations of the Penza region with use of methods of financial management and the econometric analysis, diagnostics of a financial position is carried out, regularities are revealed, admissible parameters are determined and strategic solutions on optimization of financial stability of subjects of agrarian business are developed. The received results will allow to act as a methodological reference point for bodies of authority and management of agrarian and industrial complex on formation and implementation of policy of increase in financial stability and at the same time availability of means of banking capital.

scholarly journals An Analysis of Basic Accounting Practices of Microenterprises

2019 ◽  
Vol 8 (5C) ◽  
pp. 628-637
Keyword(s):  
Social Sciences ◽  
Financial Management ◽  
Business Performance ◽  
Financial Statement ◽  
Business Success ◽  
Accounting System ◽  
Good Decision ◽  
Financial Position ◽  
Income Statement ◽  
A Company

Every microenterprise needs to learn and perform basic accounting practices to ensure that their business progress is running smoothly. Besides able to improve the business performance of a company, accounting practices also represent the result of operations of a company, as well as the statement of financial position. Therefore, by understanding financial performance very well might help the microenterprises not only to evaluate and monitor their business activities but also facilitate them in a critical way to make a better decision. The purpose of this paper is to study the application of basic accounting practices among the microenterprises in Batu Pahat. The data were collected among 157 owners of microenterprises. The data were analysed in frequency and percentage form by using The Statistical Package for Social Sciences (SPSS). The findings showed that most of the microenterprises practiced a very basic accounting system, maintained both cash and accrual accounting and practiced recording both electronically and manually. The survey also showed that most of the microenterprises completed the accounting cycle by keeping records of their daily business transaction and prepared the financial statement at the end of period mostly on income statement and statement of cash flow. With such well-maintained and completed financial records, it can be translated into feasible and good decision-making which may eventually result in business success. Besides, this survey found that the main challenges that were faced by microenterprises were lack of accounting knowledge and limited cost and time in preparing the financial statement for their businesses. Thus, it was recommended that microenterprises should improve their accounting skills and increase their knowledge by joining any training for seminar on the accounting practices toward the effectiveness of their financial management and entrepreneurial development

TAXATION OF FINANCIAL ARRANGEMENTS

1998 ◽  
Vol 38 (1) ◽  
pp. 515
Author(s):  
P. van den Broek
Keyword(s):  
Federal Government ◽  
Foreign Exchange ◽  
Financial Management ◽  
Business Community ◽  
Current Form ◽  
Major Flaw ◽  
Hedging Rules ◽  
Commodity Derivatives ◽  
Financial Arrangements ◽  
A Company

This paper looks at the proposal by the Federal Government to introduce a new regime for the taxation of financial arrangements. Such a change has been on the Government's agenda for some time. In 1993, an initial proposal was put forward, but serious concerns were raised by the business community. The Government's proposal re-surfaced in December 1996 with some modifications to address the concerns raised to the initial proposal but in the writer's view, these modifications do not satisfactorily address the concerns.The proposals basically seek to tax accrued and unrealised gains on financial arrangements such as foreign exchange loans and derivatives, including commodity derivatives. For instance, if a company has a foreign exchange loan, any unrealised foreign exchange gains at year end would need to be recognised for tax purposes, even though they may never be realised because of subsequent fluctuations in exchange rates.To address the concern that unrealised gains may never be realised, the ATO has put forward a proposal that if the foreign exchange or other transaction is a hedge against changes in value of an underlying transaction, unrealised gains do not need to be recognised for tax purposes until the underlying transaction is realised. For instance, if a company borrows in US dollars because its future revenue stream is in US dollars, unrealised foreign exchange gains would not need to be recognised until the revenue is derived.However, there is a major flaw in these hedging rules. If the hedging transaction is rolled over, any gain at the time of rollover needs to be recognised, even though the revenue that is being hedged has not been realised. Debt instruments and derivatives are often rolled over as part of the financial management of a large resource company and therefore, the new proposals in their current form would cause serious problems in that financial management.

The Role of Web Based Accounting Online System 2.0 as the Company's Income and Expense Management

2017 ◽  
Vol 1 (1) ◽  
pp. 44-49
Author(s):  
Nur Azizah ◽  
Dedeh Supriyanti ◽  
Siti Fairuz Aminah Mustapha ◽  
Holly Yang
Keyword(s):  
Financial Management ◽  
Accounting System ◽  
Bank Account ◽  
Web Based ◽  
Online System ◽  
Version 2.0 ◽  
User Friendly ◽  
The Impact ◽  
A Company

In a company, the process of income and expense of money must have a profit-generating goal base. The success of financial management within the company, can be monitored from the ability of the financial management in managing the finances and utilize all the opportunities that exist with as much as possible with the aim to control the company's cash (cash flow) and the impact of generating profits in accordance with expectations. With a web-based online accounting system version 2.0, companies can be given the ease to manage money in and out of the company's cash. It has a user friendly system with navigation that makes it easy for the financial management to use it. Starting from the creation of a company's cash account used as a cash account and corporate bank account on the system, deletion or filing of cash accounts, up to the transfer invoice creation feature, receive and send money. Thus, this system is very effective and efficient in the management of income and corporate cash disbursements.   Keywords:​Accounting Online System, Financial Management, Cash and Bank

DIRECTIONS FOR DEVELOPMENT OF ANTI-CRISIS FINANCIAL MANAGEMENT

2017 ◽  
Author(s):  
Liubov Iarova ◽  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Enterprise Management ◽  
Factors Affecting ◽  
Financial Condition ◽  
Flexible Response ◽  
Relevant Topic ◽  
Potential Risks ◽  
Negative Factors ◽  
Theoretical Foundations

For continuous performance, enterprises should not only take into account potential risks and existing negative factors, but also develop methods and principles that allow timely and flexible response to crisis occurrences, as well as determine the recovery stages in an already deteriorated financial condition. Given tasks are solved by anti-crisis financial management, designed to increase the efficiency of enterprise management and facilitate the equalization or improvement of an economic entity’s financial stability, therefore, the directions of its development are a rather relevant topic in a market economy. The article examines the theoretical foundations of anti-crisis financial management, the main factors affecting the emergence of a crisis state at an enterprise, discusses the need for its development, and provides factors that determine the effectiveness of the implemented anti-crisis policy. Identifying the need to improve anti-crisis financial management and decision-making on its implementation are accompanied by an analysis that takes into consideration possible risks and costs, which determines the expected effect. The author generalizes and indicates the main principles and stages of anti- crisis management.

FINANCIAL CONTROLLING IN THE SYSTEM OF FINANCIAL MANAGEMENT

2018 ◽  
Vol 28 (1) ◽  
pp. 137-141
Author(s):  
Petya Yordanova – Dinova
Keyword(s):  
Comparative Analysis ◽  
Financial Management ◽  
Financial Stability ◽  
Business Environment ◽  
Innovative Approach ◽  
Financial Sustainability ◽  
The Common ◽  
The Difference ◽  
Effective Use ◽  
And Control

This paper explores the comparative analysis of the financial controlling, who is a result from the common controlling concept and the financial management. In the specialized literature, financial controlling is seen as an innovative approach to financial management. It is often presented as the most promising instrument of financial diagnostics. Generally speaking, financial controlling is seen as a process of managing the company`s assets which are valued in monetary measures. The difference between the financial management and the financial controlling is that the second covers all functions of management, analysis and control of finances, aiming at maximizing their effective use and increasing the value of the enterprise. Financial controlling is often seen as a function of the common practice of financial management. Its objective is to preserve the financial stability and financial sustainability of enterprises operating in a highly aggressive business environment.

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