Financial planning - is the management process of creation, distribution and use of financial resources of a business entity.This process is a structural element of the planning process, created by the company's managers.
In modern management, when fully implemented the principles of independence should organizations and their own responsibility for the results of operations, financial planning is of particular relevance.Without it is impossible to achieve considerable success in the market, expand production and business activities and sociological development team.
Financial planning is closely connected with the planning of our operations.After all, the main indicators are based on the largest production volume, cost and product range.This process contributes to the definition of internal reserves at the enterprise and compliance saving mode.Getting the size of the planned profit is possible, subject to predicted labor costs and material costs.Precise planning avoids sverhzapasov material resources necessary unscheduled monetary investments and non-manufacturing costs.Also, thanks to planning creates favorable conditions for effective use of production capacity and, consequently, improve product quality.
So, financial planning shows the process of forming a system of measures aimed at ensuring the development of the organization some financial resources.This process is responsible for the effectiveness of activities in future periods.
Based on studies in the economic sphere, experts highlighted these kinds of financial planning: forecasting, current and operational planning.All three types of compulsory occur in the organization.
Financial planning is carried out in a well-defined sequence.Thus, the initial step is the prediction that defines current planning objectives of the company, which, in turn, provides the basis for in-depth and detailed operational forecasting its activities.
level of detail parameters of each type of financial plan to be determined by the organization itself, taking into account the specifics of its operation.
also distinguish long-term and short-term planning.In the long accounted for decisions related to the acquisition of fixed assets, the definition of the range of products produced by the enterprise, and personnel policies.
common option, however, in any enterprise is a financial planning in the short term, usually extending for one year.The annual budget, in turn, divided into quarterly and monthly plans.
