YDK - 65

Voloshyna A.V.

Scientific adviser: Chernenko T.V.

Bukovina State Financial Academy

Financial Management

 

Recent changes in economy and financial relations of Ukraine, application of the new managerial principles on the bases of market relations, the development of the business initiative and entrepreneurshipall require the fundamental change of the state managerial functions. A financial management can be presented in the type of the system of the rational and effective use of capital, mechanism of traffic of financial resources. So, the present paper deals with the crucial problem on financial management, as national economy cannot exist without financial management that is provided owing to financial control.

The purpose of financial resources, as O.N. Kovaljuk says, is providing the wide reproducing  and satisfying the needs and wants of the society, that is why every citizen and state are interested in effective using of these resources. So the necessity in financial resources managing is required [1, p. 42]. The actuality of financial management problem lies in the present necessity of creating the perfect system of financial management in Ukraine for providing the financial discipline during the reforming of the economy that can become the guarantee of future state reforms.

The problem of financial management is studied by many Ukrainian economists: O.D. Vasylyk, A.O. Epifanova, O.P. Kyrylenko, E.V. Kaljuga, V. Mel’nichuk, I.B. Stefanjuk, V.O. Shevchuk and others.

L. Feschenko mentions that the purpose of the financial management is the strengthening of the financial discipline, providing the saving of the financial, labour and monetary resources, and appropriate, reasonable using of the capital by the society to get the effectual result [2].

I. Stefanjuk defines the term “financial management” as the system of the active actions provided by the government authorities, local authorities, economic agents and the citizens of Ukraine to follow the functioning of any managerial object during the formation, distribution and using of financial resources on purpose to evaluate the economic management efficiency, to detect the deviations that prevent legal and effective using of assets and capital, manufacturing, satisfying government, collective and private wants and needs, and improving the management of economy [3, p.28-29].

The legal basis for providing financial control is the Constitution of Ukraine, where the principles, rights and duties of the state authorities and public organizations are defined. The main enactments that control the sphere of financial management are the laws of Ukraine “On State Tax Service of Ukraine”, “On State Control and Revision Service of Ukraine”, “On Auditing Activity” [4, p.24-34; 5, p. 15-17; 6, p. 23-26].

Financial management is one of the main functions of control aimed at detecting the deviations from legal standards, expediency and efficiency of management of financial resources and other assets, and if the deviations are detected financial control aims at taking precautions.

The role of financial management systems as knowledge and skills on the choice of management solutions to increase business value, increased significantly. Knowledge of financial management is now necessary not only financiers but also the head of marketing, production units etc.

So, financial management is the main element of the management activity, organizational direction, and one of the forms of realizing the state and private decisions.

Bibliography:

1. Kovalyuk O.M. Role of control in the financial mechanism of economy / O.M. Kovalyuk // Finances of Ukraine – 2008.

2.Feschenko L. Funkcional structure of the state financial checking system in Ukraine / L. Feschenko // banking – 2001 - #1 -  p.12.

3. Stefaniuk I.B. Financial control: definition and system / I.B. Stefaniuk // Economics. Finance. Right. - 2007.

4. About Auditing: The Law of Ukraine from 04.22.1993, ¹ 3125-XII / / Voice of Ukraine.

5. About State Control and Revision Service of Ukraine: the Law of Ukraine from 01.26.1993.

6. About State Tax Service of Ukraine: the Law of Ukraine from 24.12.1993, ¹ 3813 - XII.