Mechanism of managing expenses and earnings of the industrial enterprise in current market conditions

Abstract

Today industrial enterprises are facing the problem of efficient management of expenses and earnings, as prospects of enterprise development depend more and more seriously on these figures and factors influencing their change, as well as the degree of managerial impact. The article analyzes key finance tools of managing enterprise expenses and earnings illustrated by the limited company ‘Grantmash’, identifies their basic advantages and shows possibilities of their use in practice of managing industrial enterprise expenses and earnings. The author proposes to introduce principles of thrifty production as the most effective tool of managing expenses and earnings in industrial sphere. Within the frames of this program it is recommended to optimize personnel by cutting human resources being used infectively, to lower labour-intensity of production through introduction of new technologies of mechanization and automation and to upgrade machinery and equipment. Management of the industrial enterprise should take a number of steps aimed at rationalization of using work places and storages, liquidation of extra functions and simplification of document turn-over and accounting scheme. It is also recommended to cut costs of material resources at the expenses of suppliers selling necessary for production resources at lower prices and to take managerial, technical and technological steps, which can raise efficiency of the available raw material basis and cut a proportion of rejects. In order to optimize the value of fixed assets and improving efficiency of their use it is necessary to reduce the volumes of unnecessary raw material and component purchase, to optimize the structure of stocks at storages and the need in certain material and technical items, as well as to take steps aimed at building the system of accounts receivable control.

Keywords

• thrift production
• earnings of the industrial enterprise
• production
• industrial products
• expenses of the enterprise
• finance mechanism
• finance resources