Distribution function of finance. Basic moments

Finance is an important component of human life. People make great efforts to make money, which is never enough. But from the point of view of economics, finance is only a means that is used to achieve certain goals. They are endowed with functions, the implementation of which leads to the activation of specific processes. The role of finance is very great in our society. For many, money is the goal of existence. People spend precious years of their lives to earn as much as possible and die in luxury.

Distributive function of finance in the enterprise. Basic properties

The most important is the distribution function of finance. This feature can be observed at all levels of the economic activity of society: the state, the region, the enterprise, the family and the individual. The distribution function provides for the creation of funds and deductions to ensure the activities of a particular subject. Speaking of the enterprise, special funds are being formed, the resources of which are used to cover needs and requirements. For example, the payroll fund allows you to keep from the profit of the enterprise the amount that will cover the costs of creating goods or providing services.

Formation of financial resources is a very important stage of the enterprise's commercial activity. This kind of reserve allows companies to develop, develop new technologies or spread their presence territorially. The distribution function of finance also provides for the creation of reserves to cover risks, payment of social benefits and subsidies, and resolution of unforeseen situations. Modern innovative methods require constant investments and improvements in the means of production and professional development.

Distributive function of finance in the life of the family

The family, as a separate component of society, has its obligations and plans that require appropriate investment of funds. Compulsory payments include communal and rent, expenses on loans and loans, contributions to educational and educational institutions. In addition, a kind of funds are created, through which the acquisition of the most expensive things, furniture, equipment, as well as the organization of children's or general recreation.

When money is received in the family budget, they are subject to distribution depending on specific needs and needs. As in the enterprise, financial resources are subject to planning and forecasting, depending on what their further use is.

Role and Significance

The distribution function of finance leads to the possibility of planning further growth and development of the enterprise, improving living conditions and acquiring additional benefits. Considering money as a tool to achieve the goals set leads to an appreciation of their true value and significance. Companies and states learn how to properly dispose of available funds, when they cease to perceive finance as the very goal of their activities.