Economic System of Ukraine

The modern economic system of Ukraine is in a transitive phase of the development from command economy to new system of 'managing - models of market economy. The main task of economic system development is gratings the greater social-political processes which occur in social and economic spheres of the state.

In sphere of economic relations two substructures are allocated. The first is an economic construction of productive forces of a society. The second is a system of social and economic industrial communications which is based on relations of the property.

System of ownership in Ukraine is divided into three kinds: state, collective and individual. The initial forms of a state ownership are: nation-wide, republican, municipal. For the collective property initial forms are collectives of tenants, the collective, economic, general enterprises, the cooperative organizations. Private property as initial form of the individual property are personal, family.

WHAT IS FINANCE?

Finance is the function in a business that acquires funds for the firm and manages funds within the firm. Most organizations will ,haye a manager in charge of financial operations. Generally, this chief financial officer is known as the treasurer or vice president of finance. The fundamental charge is to obtain money and then plan, use, and control money effectively. That includes managing cash, accounts receivable and inventory

You are probably familiar with several finance functions such as buying merchandise on credit and collecting payment from buyers of the firm's merchandise. Both credit and collections are important responsibilities of financial managers. Naturally, this, means that;finance is further responsible for collecting overdue payments. These functions are critical to all types of businesses, but particularly important to small and medium size businesses.

Taxes represent an outflow of cash from the business and must be paid. Therefore, they too fall under the scrutiny of finance. As tax laws and tax liabilities have changed, finance people have taken on the increasingly important responsibility of tax management. Tax management is the analyzing of tax. implications of various managerial decisions in an attempt to minimize the taxes paid by the business. I lusinesses of all sizes must concern themselves with tax responsibilities.

All financial managers functions depend greatly on the information provided by the accounting statements discussed earlier.

Planning

Budgeting

Obtaining funds

Controlling funds (funds management)

Collecting funds (credit management)

Auditing

Managing taxes

Advising top management on financial matters

Often someone in the finance department serves as an internal auditor. It's the internal auditor who checks on the journals and financial statements prepared by the accounting department to make sure that all transactions have been treated in accordance with established accounting rules and procedures.

What is the function of finance?

1. Who is in charge of financial operations?

2. What is the fundamental charge of financial manager?

1. What other responsibilities of financial manager are important?

2. What does it mean that finance is responsible for collecting overdue payments?

3. What do taxes represent?

4. Are tax laws and tax liabilities fixed?

5. What is tax management?

3. What are the main financial managers functions which depend on the information provided by the accounting statements ?