THE IMPACT OF FINANCIAL INSTRUMENTS ON BUSINESS DEVELOPMENT

Abstract

The article identifies theoretical approaches to the formation of a set of financial instruments that directly affect the development of enterprises. Objective and subjective factors that affect the dynamics and efficiency of financial instruments are identified. The expediency of using financial forecasting as one of the financial methods, which allows to predict the development of economic processes in the future, as well as financial planning. If financial forecasting is a strategy for developing state finances in a certain perspective, then financial planning is tactical ways to achieve this perspective. Emphasis is placed on the need to apply the budgeting system in financial planning, especially in the context of market relations and financial turbulence. It is determined that financial control is a necessary condition for uninterrupted, efficient and gradual business development. The classification of types, forms and methods of financial control is given. Peculiarities of financial regulation of activity of business entities are determined, the basic principles of the liberal concept and the concept of state regulation are considered. The main instrument of socio-economic development as a managed process in a market economy is the economic and legal mechanism of state regulation, which includes both the system of privileges and subsidiary financial means of development, as well as a set of regulations and measures aimed at limiting certain unsatisfactory consequences of economic activity. Moreover, the financial levers of influence on the development of business structures are given. Only the complex application of all financial instruments can ensure the qualitative development of business entities. Among all financial levers, a special place is occupied by taxes and fees, through which the state mobilizes funds to perform its functions, as well as affects and encourages entrepreneurial activity, promotes investment activity etc. In a market economy, the use of administrative methods of influence is too limited, and therefore the main emphasis in the regulation of the economy is on taxation and financial stimulation of business structures development. Issues of ensuring the financial stability of business entities, strengthening their financial security, as well as identifying factors that affect the state and development of enterprise financing may be topics for further research.