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In a market economy a significant role in the successful financial activity of the company belongs to the financial planning.

Financial planning is a necessary element of the economic management. If finances themselves embrace all the aspects of the company activity, the financial planning express these aspects through the relevant financial indicators used in the management of the economy. Without the financial planning it is impossible to reach that level of economic management which provides the company with the increase of its efficiency, success in the marketplace, expanding of the material base, the successful resolution of social issues and material incentives for the employees.
The financial planning is closely connected with the planning of production activity of the company. Performance of all the routine financial instruments is based on the plans of production, range of goods and services, production costs, they must create the necessary financial conditions for the successful implementation of these plans. This is the main purpose of the financial planning. Financial planning helps to identify the internal resources of the enterprise.
It is impossible to achieve that level of control of the industrial and economic activities of the company, which provides it with the success in the market, continuous improvement of material base, social development of the team without the financial planning. None of the other types of planning can have for an enterprise such a synthesis, global significance, because finances include all the parties and all the parts of its operation.

The main tool of the financial planning in modern conditions is the financial plan of the enterprise, particularly in the form of a balance of incomes and expenditures, a significant spread in the practice also have the financial planning tools, such as billing calendar, a business plan.
The task of the short-term financial planning is to provide funding for the company and the effective use of temporary free funds.

To ensure the continuous development of the enterprise it is necessary to own the capital, i.e. the money invested in buildings, cars and equipment, in purchasing and storage of inventory, accounts receivable and other assets. As usual, these assets are not acquired immediately, and are created in over a period of time. We call the total cost of the company needed to financing the additional assets, the company’s needs in the capital
In the most of the companies, the accumulated capital requirements does not increase uniformly, but rather wavy. The need for capital has clearly expressed positive dependence on the growth of the company’s operations. However, there are some seasonal variations. Finally, there will occur unpredictable monthly or weekly fluctuations.

The accumulated need of the capital can be met through the short-term and the long-term sources of funding. As long-term funding does not cover all capital requirements, the company need to resort to the short-term financing for the mobilization of the shortfall.

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We stand on the threshold of the biggest financial crisis. So much has happened in the past few weeks that I felt it was important to step back and try to get a handle of what happened. At that time, it all seemed so beautiful. More and more people living the American dream of home ownership. Those who already own the buildings were glad to see them reduce the value and are glad to connect to the justice to purchase cars and vacations. This story is played out in so many countries.

But the composition came together in the financial markets, which make for a bad prescript. Many people assume loans that will probably never be extinguished. Large financial institutions are crediting more and more money to doubtful borrowers as a path to fast incomes. They could “set” of hypothecs and sell them to another person. Rating agencies blessed them, and they were sold around the world.

It makes me think of Warren Buffett quote: “Only if the water comes out you will find who has been swimming naked.” The tide in this case is housing prices. In connection with the reduction in house prices, these packages of mortgages fall in price. Then the financial institutions holding such risky packages should devalue them on their books.

Now the pendulum of easy credit has move too far in the rightabout. Each player on the market has been more conservative, then down right stingy with lending. We need qualified buyers to build and buy homes, thereby maintaining prices. But lenders have become so strict that it is not happening, and prices continue to decline. Mortgage securities impairment, the strength of financial institutions is weakening, so that they come less and prices continue downward in a self-perpetuating vortex.

This unwillingness to provide what led us to the current crisis. Loans and credit red blood cells of the financial system of circulation. Think of them as the necessary oxygen and nutrients to sustain the body. With Fed Chairman Bernanke and Treasury Secretary Henry Paulson saw in mid-September was to reduce the credit to an unprecedented level. The recent take over of Fannie and Freddie and AIG, had to restore some meaning of order and keep credit flowing. But this was insufficiently, and the markets were at a crucial moment.

Although unpopular with most citizens, the final adoption of the $ 700 billion rescue plan will be vital to restore confidence in the financial system. Just as markets breathed a temporary relief problem went abroad.

Fortunately, the euro Nations and Britain unveiled a bailout plan, which was considered more comprehensive than the U.S. plan. Investors believe it could be even more effective, because it guarantees bank deposits and introduced directly into the patient capital of banks.

These measures are likely to avoid the very real risk of depression, but this seems unlikely at this point, we are entering an economic recession. It will be better, but it will take time for the economy and financial markets to heal.

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