Planning of financial indicators at an enterprise is carried out using several methods. Planning methods are specific methods and techniques for carrying out planned calculations. Such methods include:
Calculation and analytical;
Normative;
Balance;
Optimization of planning decisions;
Factor method;
Economic and mathematical modeling, etc.
The calculation and analytical method of planning consists in the fact that, based on the achieved value of financial indicators, their level is predicted for the future period.
This method is used in cases where there are no financial and economic standards, and the relationship between indicators can be established not directly, but indirectly, based on studying their dynamics over a number of periods (months, years).
Using this method, the need for working capital ah, invested in stocks, planned value depreciation charges and profits. When using the calculation and analytical method, expert estimates are often used.
The normative method of planning financial indicators is that, based on advance established standards and standards determine the enterprise’s need for financial resources and sources of their formation. In financial planning, federal, regional, industry and enterprise standards are used. The internal standards of the enterprise include:
Standards for planned requirements for working capital;
Standards for accounts payable (accruals) that are constantly in circulation of the enterprise;
Standards for stocks of raw materials, materials and purchased semi-finished products, work in progress, inventories finished products and goods in stock (in days);
Norms for the distribution of net profit for consumption, accumulation and reserve funds;
The standard for contributions to the repair fund (as a percentage of the average annual cost of fixed assets), etc.
The normative planning method is the simplest and most accessible. Knowing the standard and volume parameter, you can easily calculate the planned financial indicator. Therefore, the problem of managing the finances of enterprises on the basis of developing economically sound norms and standards for the formation and use of financial resources and organizing control over their compliance by each structural unit is relevant.
The balance sheet method of planning financial indicators is that a link is achieved between the available financial resources and the actual need for them. The balance sheet method is used when forecasting receipts and payments from monetary funds (accumulation and consumption), the annual (quarterly) budget of income and expenses, the monthly balance of payments (calendar), etc. For example, the balance sheet linkage for monetary funds has the form:
Onp + P = P + Okp
where O np and Okp are the balance of the fund at the beginning and end of the billing period; P - receipt of funds into the fund during the billing period; P - expenditure of funds from the fund during the billing period.
The method of optimizing planning decisions involves developing several options for planning calculations so that the most optimal one can be selected. In this case, various selection criteria are used:
Minimum reduced costs;
Minimum operating costs;
Minimum investment of capital with the greatest efficiency of its use;
Minimum time for capital turnover, i.e. acceleration of turnover of advanced funds;
Maximum present profit;
Maximum income per ruble of invested capital;
Maximum safety of financial resources, i.e. minimum monetary losses as a result of reducing financial, credit, interest, currency and other risks.
The given costs represent the sum of current costs and capital investments, equated to an identical dimension in accordance with accepted efficiency standards. They are determined by the formula:
where Зт - current (operating) costs; Ze - one-time costs (capital investments); Knk - standard coefficient of efficiency of capital investments, fractions of a unit. Currently, Knk = 0.15, which corresponds to the standard period of investment efficiency, calculated by the formula:
where Current is the payback period of capital investments, years. The present profit is calculated using the formula:
P„ = Pt - Ze x K N1
where P p - reduced profit; Fri - current profit; Ze - one-time costs (capital investments).
The factor method is used to calculate the planned amount of profit. Fundamental conditions this method the following:
Predictive nature of planning;
The use of fairly flexible parameters with a certain degree of deviation from the selected value;
Full accounting of the inflation factor;
Application of basic indicators for the previous period;
A clear system of factors influencing the planned indicator;
Selecting the optimal value of the indicator from a number of options, as a result of which the forecast object receives the value of the initial target parameters, on the basis of which the planning process takes place.
The presented methodology is applicable for planning and other parameters characterizing the activities of the enterprise, such as, for example: sales volume, asset value, weighted average cost of capital, etc.
The factorial method of profit planning includes five stages:
1) calculation of basic indicators for the previous year;
2) setting goals for economic activity for the coming year;
3) forecast of inflation indices;
4) variant calculation of profit;
5) choice optimal option.
For the factorial method of profit planning, four inflation indices are used:
1) changes in prices for products (works, services);
2) changes in purchase prices for raw materials and materials purchased by the enterprise;
3) fluctuations in the book value of fixed assets;
4) change in the average salary of management.
The method of economic and mathematical modeling in financial planning allows us to determine the quantitative expression of the relationships between financial indicators and factors influencing their value.
This relationship is revealed in an economic-mathematical model, which is an accurate description of economic processes using mathematical symbols and techniques (equations, inequalities, graphs, tables, etc.). Only the main (determining) factors are included in the model. It can be based on a functional or correlational connection.
The functional relationship is expressed by an equation of the form:
where Y is the corresponding indicator; /(x) - functional connection determined by the x indicator.
A correlation connection is a probabilistic dependence that appears when large quantities observations. This relationship is expressed by regression equations various types. For example, one-factor models: linear type, parabola, hyperbola; multivariate models of linear and logarithmic equations.
When using planning models, determining the study period is a priority. It should be selected taking into account the homogeneity of the source data. It should be remembered that a short study period (quarter) does not allow us to identify general patterns. In this case, you cannot choose a period that is too long, since any economic patterns are unstable and can change significantly over a long period of time. In practice, it is advisable to use for forward planning annual financial indicators for the past three to five years, and for current (annual) planning - quarterly data for one to two years.
If there are significant changes in the operating conditions of the enterprise in the planning period, the necessary adjustments are made to the indicators determined on the basis of economic and mathematical models.
Economic and mathematical modeling allows us to move from average values to multivariate calculations of financial indicators (including profit). The construction of an economic and mathematical model of a financial indicator consists of a number of stages:
Studying the dynamics of financial indicators for certain time(year) and identifying factors influencing this dynamics;
Calculation of a model of the functional dependence of a financial indicator on certain factors (for example, profit from sales volume, cost of goods sold, their assortment, etc.);
Developments various options financial indicator forecast;
Analysis and expert assessment of the possible dynamics of the financial indicator in the future;
Choosing the optimal option, i.e. making a planning decision.
Not everything is included in the economic-mathematical model, but only the main factors. The validity of the model is verified by practicing its application. Special meaning for the validity of the model is its representativeness, i.e. objectivity of observations of the object being studied. The validity of the selected models is checked by calculating the standard deviation of the obtained data from the actual data and determining the coefficient of variation. The standard deviation (Z) is determined by the formula:
where y and y are the actual and estimated amount of profit; n is the number of observation cases. The coefficient of variation (CV) is a percentage
standard deviation to the arithmetic mean value of the reporting indicator (profit):
where Z is the standard deviation, thousand rubles; y - arithmetic average profit for the billing period, thousand rubles, calculated by the formula:
The coefficient of variation shows that if the degree of deviation of the calculated indicators from the actual ones is insignificant, then we can conclude that this model can be used for planning (forecasting) profits.
100 RUR bonus for first order
Select type of work Thesis Course work Abstract Master's thesis Report on practice Article Report Review Test Monograph Problem solving Business plan Answers to questions Creative work Essay Drawing Essays Translation Presentations Typing Other Increasing the uniqueness of the text Master's thesis Laboratory work Online help
Find out the price
Financial planning -system development process financial plans and planned (standard) indicators to ensure the development of the enterprise with the necessary financial resources and increase its efficiency financial activities in the coming period. Financial planning is based on the indicators of the production plan (production volume, sales, production cost estimates, capital investment plan, etc.)
Basic purpose planning is the coordination and synchronization of the enterprise's income and expenses within the framework of the planned production program and development prospects.
Main tasks financial planning of an enterprise are:
1.providing the necessary financial resources in production investment and financial activities;
2. determination of directions for effective investment of capital, assessment of its use;
3. identification of on-farm reserves, increasing profits;
4.establishing rational financial relations with the budget, banks and other counterparties;
5. respect for the interests of shareholders and other investors;
6.control over financial condition, solvency and creditworthiness of the enterprise.
Financial plans are classified by duration :
Strategic planning.
Long-term financial planning.
Business planning.
Current financial planning (budgeting).
Operational financial planning.
Planning methods – specific methods and techniques of planned calculations.
Economic analysis. This method does possible definition basic patterns, trends in the movement of natural and cost indicators. With its help, the internal reserves of the enterprise are identified. The use of analysis in terms of financial planning allows you to assess solvency, efficiency and profitability of activities and other indicators, and then make informed financial decisions based on the results.
Normative: based on pre-established standards and technical-economy. standards calculate the need for financial resources and their sources. The standards are: tax rates, tariffs, depreciation rates, standards for the need for working capital. The advantage of the normative planning method is its simplicity. Knowing the standard and the actual indicator, it is easy to calculate the deviation, on the basis of which measures can be developed to eliminate them. The disadvantages of the normative method are the constant change in centrally regulated standards and the need to adjust intra-company standards in connection with changes in the operating conditions of the enterprise.
Calculation and analytical – based on the analysis of financial indicators for the past period, their value is predicted for the future period. Using this method, the planned demand for current assets, the amount of depreciation. This method is based on expert assessment. Consequently, the disadvantage of the calculation and analytical method is the need to develop several options for the financial plan due to the insufficiently verified information base.
Direct counting method applies to non-standardized expenses. In this case, the following are taken as a basis: the quantity of material assets acquired, the volume of work performed, as well as prices, rates, and tariffs.
Balance – by building balances, a link is achieved between the available financial resources and the actual need for them. The balance sheet method is used when planning the distribution of profits and other financial resources, planning the need for funds to flow into financial funds: accumulation fund, consumption fund, etc. Advantages: validity and realism, because elements of income and expenses are clearly identified and their separate records are maintained. Disadvantages: the calculations do not take into account the dynamics of market valuations of capital, market conditions, inflation, etc.
Optimization – The essence: development of several options for planned calculations in order to choose the most optimal one. In this case, different selection criteria may be applied, as well as the merits and versatility of estimates.
Min reduced costs
Max present profit
Min capital investment with the greatest efficiency of the result
Min time working capital, i.e. acceleration of turnover of working capital
Min financial losses
Economic-mathematical – allows you to quantify the relationship between financial indicators and factors influencing them. This connection is expressed through a mathematical model, which is an exact mathematical description of environmental processes (using equations, inequalities, graphs, tables).
Fractional or index – determination of the share of expenses in total revenues; Depending on the amount of revenue, based on the approved conditions, the types of expenses for each item are determined, i.e. the cost structure is controlled. Using the method allows, in the process of implementing the financial plan, to minimize the risk of loss of solvency.
Method expert assessments involves the use of the experience of highly qualified specialists - experts to determine the parameters of the state of the planning object.
Financial planning- this is the development of financial plans for certain aspects of financial activities that ensure the implementation of the financial strategy of the enterprise in the coming period. Initial prerequisites for financial planning at an enterprise:
- financial strategy of the enterprise and the system of target financial standards established for the coming period;
- financial policy on certain aspects of the financial activity of the enterprise;
- planned volumes of operating and investment activities of the enterprise;
- indicators characterizing the development of the financial market in the context of its individual segments;
- results of financial analysis for the previous period and assessment of the financial condition of the enterprise at the beginning of the planning period.
Financial planning methods
The following methods are used in financial planning practice:
1. Method economic analysis - determines patterns and trends in the movement of natural and cost indicators, as well as internal reserves of the enterprise.
2. Normative method. The essence of the normative method is that, on the basis of pre-established norms and technical and economic standards, the need of an economic entity for financial resources and their sources is calculated. These standards are:
- rates of taxes and fees,
- depreciation rates.
3. Balance calculation method. Using the balance sheet method to determine future demand for financial resources on the forecast of the receipt of funds and expenses for balance sheet items on a certain date and in the future. Much attention pay attention to the choice of date to correspond to the period of normal operation of the enterprise.
4. Cash flow method is of a universal nature when drawing up financial plans and serves as a tool for predicting the size and timing of receipt of the necessary financial resources. The theory of cash flow forecasting is based on expected receipts of funds on a certain date and budgeting of costs and expenses. This method is more informative than the balance sheet method.
5. Method of multivariate calculations consists in developing alternative options for planned calculations to select the optimal one. In this case, the selection criteria are set differently. For example, one option assumes a continuing decline in production, inflation and weakness national currency; in another case, growth is laid down interest rates, slowdown in economic growth, reduction in product prices.
6. Economic and mathematical modeling quantitatively expresses the relationship between financial indicators and the main factors that determine them.
Financial planning system
Financial planning at an enterprise includes three subsystems:
1. Long-term financial planning- development of a financial strategy for an enterprise and forecasting of financial activities. Development of financial strategy is an area of financial planning, it is part of strategy economic development enterprises. The financial strategy is coordinated with the goals and directions formulated by the overall strategy.
At the same time, the financial strategy itself influences the formation overall strategy economic development of the enterprise. This happens due to the fact that changes in the situation on the financial market entail adjustments to the financial, and then, as a rule, to the overall development strategy of the enterprise. Financial strategy is the determination of long-term goals for the financial activities of an enterprise and the choice effective ways and ways to achieve them.
2. Current planning system the financial activity of the enterprise is based on the developed financial strategy and financial policy for certain aspects of financial activity. This is the creation of specific current financial plans that:
- determine sources of financing for the development of the enterprise for the coming period,
- form the structure of income and costs,
- ensure constant solvency,
- determine the structure of assets and capital of the enterprise at the end of the planning period.
The result of current financial planning is the development of three documents:
- movement plan Money;
- profit and loss statement plan;
- balance sheet plan.
The purpose of constructing these documents is to assess the financial position of the enterprise at the end of the planning period. The current financial plan is prepared for a period of one year, broken down by quarter, as such periodization complies with legal reporting requirements.
3. In order to control the receipt of revenue to the current account and the expenditure of available financial resources, the enterprise needs operational planning, which complements the current one. This is due to the fact that planned activities are financed from the funds earned by the enterprise, which requires control over the formation and use of financial resources. Operational planning of financial activities consists of developing a set of short-term planning targets for financial support economic activity of the enterprise.
Operational financial planning includes the preparation and execution of a payment calendar, cash plan and calculation of the need for a short-term loan.
When creating a payment calendar, the following tasks are solved:
- organization of accounting for the temporary connection of cash receipts and upcoming expenses of the enterprise;
- formation information base about the movement of cash flows and outflows;
- daily accounting of changes in the information base;
- analysis of non-payments (by amounts and sources) and organization of specific measures to overcome them;
- calculation of the need for a short-term loan in cases of temporary “inconsistency” between cash receipts and liabilities and prompt acquisition of borrowed funds;
- calculation (by amounts and terms) of temporarily available funds of the enterprise;
- analysis of the financial market from the position of the most reliable and profitable placement of temporarily free funds of the enterprise.
To implement the payment calendar, compilers monitor the progress of production and sales, the state of inventories, and accounts receivable.
Each of these subsystems has its own forms of developed financial plans and clear boundaries of the period for which these plans are developed.
Was the page helpful?
More found about financial planning
- Introduction of a program-targeted (regulatory) approach into the financial planning system at small enterprises
Without planning, it is impossible to effectively carry out either organization or control over the activities of an enterprise. Financial planning, in particular, occupies a special place in the planning system since the development of a financial plan allows - Financial policy of the enterprise
Operational financial planning Here the indicators of financial plans are matched with production, commercial, investment, construction and others - Enterprise financial management through the development of financial policies
A process in financial planning is a sequence of tasks and procedures that together provide the beginning, development, culmination and - Strategic management accounting of financial flows is an important area of strategic management accounting
Strategic planning of financial flows is aimed at developing long-term financial plans, the implementation of which in turn - Financial planning and forecasting of profitability, solvency and liquidity indicators
Financial planning and forecasting indicators of profitability, solvency and liquidity. Financial planning at an enterprise comes down to achieving the main goals: profitability, solvency, liquidity. Therefore, it is necessary both - Key aspects of managing an organization's profit
N I Short-term financial planning in the financial management system of an organization Text N I Malykh H A Prodanova Audit - How to improve financial management during a crisis
If a company often and urgently seeks external financing, then its operational financial planning is clearly not doing well. There is a need to reconsider the approach to cash management - The risk of reducing the financial stability of an enterprise in modern conditions
Factors: low level of organization of financial planning; crisis situation in mutual settlements of the enterprise; unfavorable market conditions; ineffectiveness of legislation; associated credit risk - Financial analysis in the organization's management system
The financial director must know methods for analyzing and assessing the effectiveness of the organization’s financial activities, methods and procedures for planning financial indicators. The nature of the requirements for the financial director of the organization is determined by its size and structure - Management analysis at Russian enterprises: formation and prospects
Slutskin M L Financial planning in market conditions M Slutskin Financial business - 2003. - No. 5. 10. - Regulations that will allow optimizing the holding’s working capital
JAVA determines the document flow and decision-making procedure within the framework of the financial planning and accounting system for current working capital 4.2.3. The budget system should be hierarchical and consistent - Monitoring the quality of financial management
It is proposed to conduct quarterly and annual monitoring of the quality of financial resource management in such areas as financial planning, budget execution in terms of expenses, budget execution in terms of income, accounting and reporting - Financial analysis of an enterprise - part 5
Considering this is needed scientific organization work on managing financial resources that will provide high level financial resource planning adoption optimal solutions taking into account their economic and social impact Good knowledge - Analysis of financial flows of ferrous metallurgy enterprises
This financial planning option assumes a high level of financial and accounting technologies and management of holding participants The second way to organize financial - Where to start organizing financial management in a company
In the future, having overcome the threshold separating medium business from small, the financial planning policy can be revised, but for now it is enough to build a budgeting system for the centers of financial responsibility of the Central Federal District - Financial Director
As a rule, the chief accountant service, accounting, financial planning and budget, and the financial department, cash, are subordinate to him. securities credit policy in small - Current issues and modern experience in analyzing the financial condition of organizations - part 3
Listed groups indicators act as a tool for objective assessment of the financial condition of planning and management, which are widely used in the economic practice of organizations. One of the main - Financial structure in 3D format
Desk book on the formulation of financial planning M Finance and Statistics 2005. 464 p. - Methodology for analyzing income in organizations in the sphere of circulation for managing equity capital
Makes it possible to compare the values of the studied indicators with similar data from competing organizations and average values for the industry; to extrapolate the obtained research results for subsequent periods for use in financial planning; Ratio analysis of income Based on the application relative indicators Allows you to abstract from the influence of inflation - Expenditure
In financial planning, the classification of expenses according to the areas of activity of the enterprise is often used: the main one is ordinary investment and financial
INTRODUCTION……………………………………………………………………………….3
1. THEORETICAL BASIS OF RESEARCH METHODS
FINANCIAL PLANNING………………………………………….6
1.1. The role of financial planning in an organization……………………6
1.2. Basic methods of financial planning………………………...8
1.3. Current planning and use of the forecast method
sales……………………………………………………………….10
2. ORGANIZATION OF FINANCIAL PLANNING FOR
CJSC "BORODINSKOE"……………………………………………………..15
2.1. Analysis of financial condition…………………………………….15
2.2. Drawing up budgets for income and expenses……………………….21
FINANCIAL PLANNING……………………………………………………...25
CONCLUSION…………………………………………………………….32
LIST OF REFERENCES………………………………..35
APPLICATIONS
INTRODUCTION
Financial planning plays a leading role in the enterprise management system. This is an axiom that has long been tested in practice in developed countries. However, as a result of market transformations of the Russian economy, planning as an institution was practically eliminated at all levels of management. But life has shown that this is one of the strategic mistakes of reform. And today the issue of planning has become acute at all levels of management.
The restoration and development of financial planning at enterprises occurs with varying degrees intensity. The formation of new planning systems depends on many factors that influence the level of planned work. The first group of factors: the difficult financial condition of the enterprise, low qualifications of personnel, computer illiteracy of employees, ineffective motivation systems - bad influence. The second opposite group of factors: management interest, personnel innovation, effective marketing activities - a positive influence.
The dependence of the quality of enterprise plans on many factors proves the difficulty of choosing the optimal direction for planning development. Moreover, the experience of enterprises shows that changes relating only to planning technology, observed during economic reform in Russia, can only reduce the discrepancies between planned and actual values indicators, which is of course relevant in conditions of instability of the external environment. Changes only in the field of planning calculation technology can only slightly increase the “authority” of planning work in the eyes of enterprise managers, which was lost due to the latter’s inability to develop high-quality plans in the changing environment of a transition economy. It is necessary to use fundamentally new approaches to planning.
At the same time, significant opportunities for increasing the efficiency of financial planning are provided by the use of global experience in planning work at enterprises in developed countries. However, for implementation modern technologies planning, domestic enterprises need to create conditions for its implementation: changing the organizational structure of management; implementation management accounting; computerization of management and production; advanced training of workers involved in planning. Thus, the most important problem development of financial planning is the complexity of organizational changes in the management system of domestic enterprises. The high scientific and practical demand for an in-depth study of the problems of organizing financial planning at enterprises predetermined the choice of the topic of the course work.
The purpose of this work is to become familiar with the basic methods of financial planning at an enterprise and the possibilities for its improvement.
In accordance with the purpose of the work, the following tasks were set and solved:
· research of the concept of a financial plan and determination of its role in the financial planning system;
· study of financial planning methods;
· study of key aspects of organizing financial planning at a specific enterprise.
The goals and objectives determined the following work structure:
Financial plan as an integral part of the business plan.
Object of study: enterprise ZAO Borodinskoye.
Subject of study: organization of financial planning of Borodinskoye CJSC, an enterprise operating in the field of agricultural production.
The work was based on the study and systematization of educational and specialized literature on enterprise finance, using normative and methodological data, as well as media materials.
When writing the work, the works of Russian scientists such as V.M. were used. Popov, E.M. Rogova, E.A. Tkachenko, Yu.P. Aniskin, N.A. Platonova, T.V. Kharitonova, O.N. Likhacheva.
1.1. The role of financial planning in an organization
Financial planning is a type of management activity aimed at determining the required volume of financial resources, their optimal distribution and use for the purpose of the financial stability of an economic entity. In market conditions, enterprises themselves are interested in truly representing their financial position today and for the future. This is necessary, firstly, in order to succeed in business activities, and secondly, in order to timely fulfill obligations to the budget, extra-budgetary funds, banks, and other creditors and thereby protect oneself from financial sanctions and reduce the risk of bankruptcy.
Financial planning is an important element of the corporate planning process. Every manager, regardless of his functional interests, must be familiar with the mechanics and meaning of the implementation and control of financial plans, according to at least, as far as his activities are concerned.
The importance of financial planning is as follows:
planned strategic goals enterprises are refracted in financial and economic indicators - sales volume, cost, profit, investments, cash flows and etc.;
· standards are established for organizing financial information in the form of financial plans and reports on their implementation;
· acceptable amounts of financial resources necessary for the implementation of long-term and operational plans of the enterprise are determined;
· operational financial plans create the basis for the development and adjustment of a company-wide financial strategy.
The development of financial plans occupies an important place in the system of measures to stabilize the financial management of an enterprise.
The main objectives of financial planning are:
· ensuring the normal circulation of funds of the enterprise, including their investment in real, financial, intellectual investments, increase in working capital, social development;
· identification of reserves and mobilization of resources in order to effectively use the diverse income of the enterprise;
· respect for the interests of shareholders and investors;
· determination of relationships with the budget, extra-budgetary funds and higher organizations; employees of the enterprise;
· optimization tax burden and capital structure;
· control over the financial condition of the enterprise, the feasibility of planned operations and situations.
The organization of planning depends on the size of the enterprise. In very small enterprises there is no division of management functions in the proper sense of the word, and managers have the opportunity to independently delve into all the problems. On large enterprises work on drawing up budgets (plans) should be done in a decentralized manner. After all, it is at the department level that the personnel with the greatest experience in the field of production, procurement, sales, operational management, etc. are concentrated. Therefore, it is in the divisions that proposals are put forward regarding those actions that would be advisable to take in the future.
Departmental budgets should not be developed in isolation from each other. When calculating, for example, planned sales indicators, and therefore the amount of coverage, it is necessary to know the production conditions and planned selling prices. To ensure an effective coordination system, many enterprises develop instructions for drawing up budgets, which contain a time plan, as well as the distribution of duties and responsibilities when calculating budget indicators.
1.2. Basic methods of financial planning
In the literature on enterprise planning, two schemes for organizing work on drawing up budgets (plans) are usually distinguished: the break-down method (top-down) and the build-up method (bottom-up).
According to the break-down method, work on drawing up budgets begins “from the top,” i.e. The management of the enterprise determines goals and objectives, in particular profit targets. Then these indicators in an increasingly detailed form, as you move to lower levels of the enterprise structure, are included in the plans of divisions. The build-up method does the opposite. For example, individual sales divisions begin calculating sales indicators, and then the head of the enterprise’s sales department brings these indicators into a single budget (plan), which may subsequently be included integral part into the general budget (plan) of the enterprise.
The break-down and build-up methods represent two opposing trends. In practice, it is not advisable to use only one of these methods. Planning and budgeting is an ongoing process in which the budgets of various departments must be constantly coordinated.
Organization of financial planning requires a choice of planning methods. Financial indicators can be planned using various methods (calculation and analytical, normative, balance sheet, optimization of planning decisions, economic and mathematical modeling).
Financial planning is built on methodological foundations.
Financial planning methodology – This is a scientifically based system that includes a set of general principles of financial planning and methods for developing financial plans.
The basic principles of financial planning include:
scientific character . It reflects the state of development of financial science and requires improvement of methods for developing financial plans. On this basis, it is possible to steadily improve the quality of financial plans and their role in the effective financial management of organizations. A more complete account of real economic conditions, objective laws of a market economy, and the strength of their influence in specific situations leads to the emergence of a number of new schemes and models of financial planning that take into account the specifics of finance various industries economy and even individual business entities;
target orientation . This is one of the basic principles of organizing financial management. In accordance with it, it is necessary, first of all, to clearly formulate the mission of the organization and determine those strategic goals in achieving great importance allocated to financial plans. The target orientation does not remain unchanged: it changes at each stage of the organization's life cycle;
3) systematic nature of planning . It consists in the fact that financial planning is a set of interrelated elements (financial plans or budgets of all structural divisions business entity) aimed at achieving the strategic goal of the organization;
coordination , which lies in the fact that the financial plans of all structural divisions are interconnected and interdependent;
continuity and flexibility financial planning process, which is an essential prerequisite effective management finances and involving systematic work on drawing up and adjusting all interrelated plans of the enterprise;
correspondence sources of financing for the purpose of attracting them. The tool must be fit for purpose. For example, to modernize fixed assets it is advisable to attract long-term sources of financing, and to purchase additional working capital - short-term ones;
ensuring liquidity and financial stability organization in financial planning of its activities. The implementation of this principle should ensure that the amount of the organization's working capital exceeds its short-term debt.
TO methods financial planning includes: economic analysis, regulatory, balance sheet, discounting of cash flows, multivariance, economic and mathematical modeling, proportional dependence, etc.
Economic analysis method allows you to determine the main patterns, trends in the movement of natural and cost indicators, and reveal the internal reserves of the organization.
Essence normative method lies in the fact that, on the basis of pre-established norms and technical and economic standards, the need of an economic entity for financial resources and their sources is calculated. Such standards are tax rates and fees, depreciation rates, etc.
Usage balance calculation method to determine the future need for financial resources, it is based on the forecast of the receipt of funds and costs for the main balance sheet items at a certain date in the future.
Discounted Cash Flow Method is of a universal nature when drawing up financial plans and serves as a tool for predicting the size and timing of receipt of the necessary financial resources. The theory of cash flow forecasting is based on expected receipts of funds on a certain date and budgeting for all costs and expenses. This method gives more voluminous information than the balance sheet method.
Method of multivariate calculations consists of developing alternative options for planned calculations in order to select the optimal one, and different selection criteria can be specified.
So, for example, one option may include a continuing decline in production, inflation and weakness of the national currency, and another – an increase in interest rates and, as a consequence, a slowdown in the growth rate of resource attraction and a decrease in market prices for products.
Methods of economic and mathematical modeling allow us to quantitatively express the close relationship between financial indicators and the main factors that determine them.
One of modern methods drawing up financial plans, which came to us from Western practice - proportional method no dependence of indicators . It is used in drawing up the main documents of the financial plan (balance sheet, profit and loss statement). The essence of this method is that individual items of the balance sheet and profit and loss account increase in proportion to the change in revenue from product sales. The algorithm for performing calculations using this method is as follows:
the basic indicator is determined, which is the most important for characterizing the organization’s activities. In practice, sales revenue is most often used. However, it can also be the cost of goods sold;
are analyzed economic indicators reporting period and reveals the percentage relationship between the basic and derivative indicators (items of assets, liabilities and costs);
a forecast version of the profit and loss statement is drawn up, in which retained earnings are calculated, which is one of the initial indicators for the planned balance sheet;
the organization's balance sheet is forecast, in which, first of all, the expected values of assets are determined. The balance sheet liability is compiled by linking balance sheet indicators based on the identified additional need for sources of financing, taking into account possible restrictions on the capital structure and the cost of various sources;
a second version of financial plans is formed taking into account the attraction of new loans and borrowings, and, as a result, additional costs arise for interest payments (financial feedback effect).
If the second option does not allow the balance to be balanced, several more iterations should be carried out, at each of which certain financial decisions will be taken into account.
Financial planning process at the enterprise is carried out in several stages.
At the first stage, the financial indicators of the previous period are analyzed, for which the main financial documents of organizations are used: balance sheet, profit and loss statements, cash flow statement. They are important for financial planning, as they contain data for the analysis and calculation of the financial performance indicators of the organization, and also serve as the basis for drawing up a forecast of these documents. Moreover, complex analytical work at this stage is somewhat facilitated by the fact that the reporting and planned financial forms are identical in content.
The balance sheet of the organization is part of the financial planning documents, and the reporting balance sheet is the initial basis. At the same time, in both Western and domestic practice, companies usually use for analysis an internal balance sheet, which includes the most reliable information for internal use. And the external balance sheet is usually compiled for publication and for a number of reasons (taxation, creation of reserve capital, etc.) shows reduced profits.
The second stage involves the preparation of basic forecast documents, such as a balance sheet forecast, profit and loss statement, cash flow (cash flow), which relate to strategic financial plans and are included in the structure of the organization's scientifically based business plan.
At the third stage, the indicators of forecast financial documents are clarified and specified by drawing up current financial plans.
At the fourth stage, operational financial planning is carried out.
The financial planning process ends with the practical implementation of plans and monitoring their implementation.
