In the conditions of market relations when the principles of independence and responsibility of enterprises for the results of its activities are fully implemented, there is an objective need in the financial planning. Without the financial planning it is not possible to succeed in the market, to expand of the production and business activities and social development of the collective.
All the three types of financial planning are interrelated and implemented in a certain sequence. The initial phase of the financial planning is the forecasting of financial performance which determines the current problems of planning. In its turn, the current planning of the financial activities creates the basis for a more detailed operational planning.
1. Predicting of the financial activity of the enterprise is the most difficult stage of financial planning demanding high qualification of the performers. By the predicting of the financial activity of the enterprise should be understood the formation of long-term financial goals and select of the most effective ways of their achieving. Predicting of the financial activity is the part of the overall economic development strategy of the enterprise and it should be agreed with its goals and directions.
2. The aim of the current financial planning is to develop a system of financial plans for specific aspects of financial activity of the enterprise. Current planning allows us to determine to all the sources of financing of the company for the coming period, to form a system of its incomes and expenditures, to ensure continued solvency of the company, to predetermine the structure of its assets and liabilities at the end of the planning period. Certain types of ongoing financial plans of the enterprise are usually made for the coming year with dividing it into quarters.
During the current financial planning on the enterprise the following types of the financial plans are usually developed:
• incomes and expenses plan for the main economic activity;
• the plan of incomes and expenditures of the funds;
• the balance plan;
• the plan of formation and use of financial resources.
3. The operational planning of financial activity of the enterprise is to develop a system of budgets. The budget is an operational financial plan for a short-term period (up to 1 year), reflecting the cost and availability of funds on certain aspects of the financial activity, certain business transactions or investment projects.
The works on the budget are aimed at the achieving of two main objectives: 1) determining the amount and the structure of costs, 2) to ensure the coverage of these costs by the financial resources from the various sources.
In practice of the operational financial planning two types of budgets are used: the budget of capital expenditures and receipts of funds and the budget for ongoing cash expenditures and revenues.
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