THE ROLE OF FINANCIAL MANAGEMENT AND QUESTIONS OF DEVELOPMENT OF ITS MECHANISMS IN THE MODERN PERIOD

Abstract

The topic of financial control over business activities is discussed in this article. The author focuses on financial management methods in the modern context, the use of information technology to improve the control system, auditing, and challenges with electronic auditing, and other topics. Strengthening control over the use of budget funds, increasing tax system transparency, continuing changes to improve tax culture, bolstering positive trends in the country's Chamber of Accounts' activities, simplifying budget classification, and raising public awareness will all help improve the efficiency of financial control mechanisms and reduce corruption risks, according to the article. Azerbaijan's current economic scenario is marked by frequent changes in the external and internal environments of businesses. Many businesses are compelled to operate under a shortage of credit resources, discrepancies in domestic regulation, and other factors. As a result, a priority factor in the formation of their competitiveness is effective financial decision-making in financial management, including effective financial decision-making, financial resource distribution and redistribution, and cash flow of the corporation, which should be based on comprehensive control, ensuring the targeted nature of distribution and a certain rate of return on invested capital. Financial management and control systems based on outdated accounting and analysis methods, as well as planned and factor analysis, make it impossible to produce reliable results. Modern circumstances necessitate a qualitative shift in financial control as a foundation for ensuring the implementation of the levers of the corporation's financial management mechanism, including forecast indicators and the attainment of the corporation's strategic goals and objectives. Internal financial control is a critical component of the financial management system for making and implementing successful management decisions. It must be implemented at all levels of management to ensure high-quality management outcomes. Internal corporate financial control aims to adjust the corporation's production and management systems to the changing external environment, achieving target financial performance indicators, and maintaining the corporation's financial position in industrial markets. As a result, a successful firm must have a well-established financial management system, which is a guarantee of a company's success in a competitive environment. The paper concludes with generalized findings about the subject under consideration.