The Theoretical Basis for the Formation of the Mechanism for Managing Financial Resources of an Enterprise

Abstract

The aim of the article is to formulate an original definition of a mechanism for managing financial resources and develop a conceptual framework for this mechanism. The fundamental goal of financial management is ensuring growth in the value of an enterprise and creating Cash Value Added, which can be achieved by an effective management of the process of formation and use of financial resources. This determines the relevance of studying the essence of the mechanism for managing financial resources and structuring the components of this concept. That is why, it is new and important in the theoretical and methodological terms to describe the essence of the category “mechanism for managing financial resources of an enterprise”, which is considered in this study as an interconnected set of organizational and economic elements of managing the formation and use of financial resources that ensure business efficiency, competitiveness and financial stability, conditions for sustainable development not only in the short but in the long term as well. The main components of this mechanism are identified and characterized. Prospects for further research in this direction are the improvement of the system for financial resources management at a particular enterprise.

Keywords

• mechanism
• financial resources
• management