Theoretical Basis for Improving the Enterprise Financial Condition

In the context of changing market conditions and high competition, management is obliged to constantly look for new ways to improve the enterprise financial condition. The purpose of the article is to substantiate the theoretical basis for improving the enterprise financial condition in modern economic environment. The essence of the financial condition, as the most important characteristic of business activity, solvency and reliability of the enterprise was disclosed. It was determined that improving the enterprise financial condition is possible due to professional management of cash flows through the implementation of measures for the optimal receipt and expenditure of net cash. The key tasks were identified, the solution of which will allow effectively managing the working capital of the enterprise and maximizing profits at an acceptable level of commercial risk and liquidity. The receivables management tasks were systematized, the implementation of which will allow: accelerating customer payments, implementing an effective sales and market promotion policy, as well as reducing customer debts for which payments are dubious or certainly will not be received. The expediency of developing a system of contracts of sale with flexible terms and forms of payment to maximize the flow of funds to the enterprise was proved. The ways of reducing borrowed funds due to better disposal of working capital and ensuring internal financing at the enterprise were justified. It was determined that the enterprise should set as its goal the development and implementation of its own competitive strategy, conduct diagnostics of the competitive environment and monitor the dynamics of the economic situation. The arguments presented in the article form the theoretical basis for improving the enterprise financial condition, which can be used to develop a strategy for managing the enterprise financial stability.