Finance Functions
The basis of market relations is money,connecting the interests of the seller and buyers. As a result of economic relations, financial relations arise, in which market participants earn and use money for various purposes, while creating their own proper funds. At the same time, the concept and functions of finance are a key category of interaction between market actors.
Finance have the following common features: they are connected with the state, the process of production, commodity-money relations, they are a category of value (money), carry out the distribution of GDP and ND, are expressed in real monetary funds. The essence of the role and function of finance are interrelated.
The essence of finance is revealed through functionsfinance. They are implemented through a financial mechanism that includes organizational forms of financial relations in the sphere of the national economy, the procedure for the use and formation of monetary centralized and decentralized funds, methods for planning finance, financial legislation, methods of planning finance, etc.
Finance performs a number of functions. The function is understood as the manifestationeconomic category of its essence, through it the circle of duties which this category fulfills is revealed. The functions of finance are stable and objective.
In the economic theory of a single view of the functions of finance there is no single point of view. Most researchers distinguish such functions as control, regulating and distributive.
Distribution function is carried out in all areas of publiclife: an intangible sphere of material production, circulation. At the micro level, the entities of distribution are legal entities and individuals, at the macro level - the state. Distribution is subject to GDP and ND.
This function covers three consecutive andinterrelated steps: the formation, further distribution and use of monetary funds. The formation of funds means the financial resources of business entities, households and centralized state funds. These funds are distributed through financial instruments. The use of finance ensures the expanded production and life of individual members of society, as well as the improvement of the nation-wide needs of the entire population.
Control function is connected with the movement of monetary funds of the value of GDP. With its help, the reproduction process is displayed through financial resources. Financial control informs society about the problems in economic and monetary relations in the country. This function signals deviations in the proportions of GDP and GDP, the need for the formation of trust funds of funds, creation of the availability of the necessary production resources.
The control function is manifested before the onsetdistribution process, in the process of using money funds, when summarizing and evaluating the execution of funds of funds. The function is realized through financial and economic, financial-budgetary and credit-bank control.
The objects of the control function are financialperformance indicators of enterprises, firms, organizations. In this issue, much depends on the activities of the chief accountant, the employees of the financial department, the adequacy of financial information and compliance with discipline in the field of finance.
Regulating function is associated with state participation in the processesreproduction. At the micro level, this function stimulates the activity of enterprises (creating funds that contribute to improving the quality of the production process), at the macro level - regulates public spending, state credit, taxes.
These are the main functions of finance, which reveal the essence of this sphere of relations.
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