FINANCIAL SECTION - one of the most important sections of the business plan, as it is the main criterion for accepting an investment project for implementation. The financial plan is necessary to control the financial security of the investment project at all stages of its implementation and reflects the upcoming financial expenses, sources of their coverage and expected financial results, as well as the results of calculations that are carried out during its development in a certain sequence.
The financial section of the business plan includes several main documents: the balance sheet of the organization, the profit and loss plan, the cash flow forecast, the operating plan, the income and expenses plan. These documents are of a planning and reporting nature, such planning is carried out on the basis of a forecast of the future activities of the company within a certain period of time, and the data given in these documents are used to analyze the financial condition of the company.
Let us briefly describe the main documents included in the financial section of the business plan:
Operational plan- reflects the results of the interaction of the company and its target markets for each product on the market for a certain period, this document is developed by the marketing service at the company. The set of indicators presented in the operational plan helps to demonstrate to the company's management what market share is occupied by the company for each product and what it is expected to win. The structure of the income statement is relatively simple, it usually includes revenue from the sale of goods, production costs, tax and other deductions. Based on these indicators, the profit remaining at the disposal of the company after the payment of dividends is calculated, according to this section, you can determine whether a particular product makes a profit, compare different products in terms of profitability in order to determine the feasibility of further production. Thus, the ultimate task of this document is to show how profit will change and form during the first and second years quarterly and further - per year. Plan - a cash flow statement shows how much cash is available to the company and what is the company's need for them. This report is compiled as a summary result of the company's activities for all types of goods and services, its structure, in particular, includes planned and actual investments in the company's activities for the reporting period. The final document of the financial plan is the balance sheet, its peculiarity lies in the fact that it does not reflect the results of the company's activities for a certain period, but fixes strong and weak sides in terms of finance at the moment. Any single element of the balance sheet on its own means little, however, when all these elements are considered in relation to each other, it allows one to judge the financial position of the company. It is easy enough to write such a report: it shows how the initial capital (source of debt + equity) will be received and how it is supposed to be spent. In the projections of the balance sheet for the next period, the initial balance sheet should be taken into account, as well as the features of the company's development and the results of its financial and financial economic activity.
Important component financial section business plan -- determination of sources of capital, necessary for the operation of the company. This part of the financial plan is relevant for both small firms just entering the business, and for large enterprises that need additional capital inflow. Data on sources of capital are linked to the use of funds with a specific indication of the methods and directions of use of capital.
You can also imagine the following version of the structure of this section of the business plan in terms of R&D.
1. Current state. Describe the current status of each product or service and explain what needs to be done to bring it to market. It is useful to indicate what skills an enterprise has or should have in order to perform these tasks. If possible, list the customers or end users who are involved in the development and testing of products and services. It is necessary to indicate the current results of these tests and when the finished product is expected to be received.
2. Problems and risk. Highlight any major perceived problems in the design of the product under development and approaches to solving them. Assess the possible impact of these issues on product development costs and time to market.
3. Product improvement and new products. In addition to describing the developments and initial products, indicate the work on their improvement planned to maintain their competitiveness, and work on the creation of new products and services that can be offered to the same group of consumers. Indicate the consumers who take part in these developments and their opinion about the prospects of the latter.
4. Costs. Submit a cost estimate for R&D, including salaries, material costs, etc. Please note that underestimating this estimate can affect the expected profitability, reducing it by 15-30%
5. Property issues.
List any patents trade marks, copyright that you own or intend to acquire. Describe any contracts or agreements that give you exclusivity or ownership of designs or inventions. Describe the impact of any outstanding issues, such as ownership disputes, on the competitive edge you have.
It is also worth noting that this area of activity requires significant capital investments, the presence of highly qualified specialists and managers, a high degree of production specialization, small firms that are just starting a business are often content with using existing developments, certain production technologies and goods. The business plan also includes risk assessment and insurance. Any plan does not provide a guarantee of success. A condition for the skillful management of the resources provided is to take into account the possible risk of the project. Risk is the probability of obtaining a positive result in entrepreneurial activity. Here, the size of the risk (possible losses in the implementation of the project), the probability of the risk, the degree of controllability of a particular risk are set.
In the financial section of the business plan, the investment risk is also calculated, naturally, the business plan will look much more attractive if it reflects the investor's gain in terms of minimizing losses and obtaining the planned profit, therefore, in planning, it is necessary to provide an overall assessment of commercial risk, to predict at what the degree of risk associated with investment infusions into the project. Along with the need to predict risk in terms of the plan, the head of the enterprise must have knowledge of the basic patterns of risk reduction:
* effective forecasting and systematic planning of the company's activities,
* insurance and self-insurance,
* hedging futures transactions,
* issue of options, diversification.
The financial justification of the project is a criterion for making an investment decision, so the development of a financial plan should be carried out very carefully. The goals and objectives of forecasting the financial and economic activities of an investment object are, first of all, in assessing the costs and results expressed in financial categories.
The financial section of the investment project consists of the following items.
1. Analysis of the financial condition of the enterprise during the three (and preferably five) previous years of its operation.
2. Analysis of the financial condition of the enterprise during the preparation of the investment project.
3. Forecast of profits and cash flows.
4. Evaluation of the financial efficiency of the investment project.
Let us dwell briefly on each item of the financial section of the investment project.
Financial analysis of the previous work of the enterprise and its current position usually comes down to the calculation and interpretation of the main financial ratios that reflect the liquidity, solvency, turnover and profitability of the enterprise. Calculate the financial ratios that characterize each planning period, then analyze the ratios over time and identify trends in their change. An investor, before investing in a specific project, analyzes its functioning (activity) in order to assess the future state and development prospects, and the effectiveness of investments. The indicators (coefficients) used to analyze and evaluate an investment project are not limited to those discussed below, since there is no such set of them that would fully meet the objectives and satisfy all the goals of the analysis.
The predicted financial indicators and project efficiency obtained as a result of calculations can be presented in the business plan in the form of a table.
Project performance indicators
Solvency ratios are used to assess a firm's ability to meet long-term obligations. Turnover ratios make it possible to evaluate the effectiveness of operating activities and policies in the field of prices, sales, and purchases. Profitability indicators are used to assess the current profitability of an enterprise participating in an investment project.
The values of the relevant indicators must be analyzed in dynamics for a number of previous years and the main indicators should be compared by years. The list of coefficients is determined by the specifics of the project.
The forecast of profits and cash flows in the process of implementing an investment project and assessing the financial efficiency of the project include:
Estimation of the cost of capital attracted for the implementation of the investment project;
Drawing up a consolidated balance of assets and liabilities of the project;
Profit/loss and cash flow forecast;
Evaluation of financial performance indicators of the project.
The evaluation of the financial efficiency of the project is carried out taking into account the principle of "cost of money over time". This principle says: “A ruble is now worth more than a ruble received in a year,” i.e., each new cash flow received in a year has a lower value than an equal cash flow received a year earlier. Therefore, all inflows and outflows received at different stages of the project implementation are reduced to today's (current) value by discounting. This allows you to compare them and calculate the main indicator of the financial efficiency of the project - NPV (Net Present Value) net current (or present) value.
To analyze the feasibility of project implementation, it becomes necessary to forecast inflation rates for the entire period of validity (by periods) of the investment object. In this case, it is desirable to accept several alternative forecasts - pessimistic and optimistic.
When forecasting the financial and economic activities of the project in the business plan, the net profit from the project and the cash flow are calculated, a project balance sheet is compiled (taking into account the assets and liabilities of the balance sheet). These are the three basic forms of financial reporting. Based on all the calculations, three documents are developed:
1. plan of income and expenses;
2. plan of cash receipts and payments (cash flow);
3. plan-balance of assets and liabilities.
Based on the assessment of the effectiveness of the investment project, investors and other participants make decisions on investing, withdrawing from the project, adjusting its parameters, implementation conditions, possible ways to improve efficiency, etc.
federal agency of Education
State educational institution
higher vocational education
"St. Petersburg State
University of Engineering and Economics"
Faculty of Entrepreneurship and Finance
Department of Finance and Banking
Coursework by discipline
FINANCIAL MANAGEMENT
Completed by: Alekseeva Anastasia Bakhtierovna
3rd year student 3.10 term of study
specialty 080105 "Finance and Credit"
Group 8/3371
Record book number 33980/07
Signature___________
Checked: ___________________________
Grade:______ Date_________________
Signature____________
St. Petersburg
In a rapidly changing economy, it is essential for managers to take appropriate responses in a timely manner. Invaluable assistance here is provided by planning, which allows you to analyze the entire range of future business operations. It is on the basis of planning the further development of the enterprise that there is a real opportunity to minimize the internal and part of the external risks of the company, to maintain the flexibility of production management. If work without a plan is a forced reaction to events that have already occurred, then activity based on a plan is a managerial reaction to expected and planned phenomena.
The relevance of the business plan is predetermined by the fact that not a single serious management decision can be made without a business plan presented in one form or another.
In difficult economic conditions of the period of transition to the market, the business plan of an enterprise should, first of all, solve the problems of improving its financial condition. In this regard, consideration of the financial aspect of the business plan is most relevant.
In the first chapter term paper will be considered: characteristics of the market environment of the enterprise; state regulation of the financial activity of the enterprise; functions, goals and objectives of financial management; financial mechanism and financial instruments.
In the second chapter, we will briefly consider the business plan of the enterprise, and the financial section of the business plan will be disclosed in more detail.
In the third chapter, we will develop a financial plan for the production of confectionery.
In a broad sense, the market is a sphere of manifestation of economic relations arising between people in the process of production, distribution, exchange and consumption. In a narrower sense, the market is the sphere of commodity circulation and the associated set of commodity-money relations that arise between producers (sellers) and consumers (buyers) in the process of buying and selling goods.
An extended interpretation reveals a very important essential aspect of the market, which makes it possible to determine its place and role in the process of reproduction: the market provides an organic connection between production and consumption, is influenced by them and itself influences them. The market determines the real volumes and structure of various needs, the social significance of the production product and the labor spent on its manufacture, establishes the relationship between supply and demand, which forms a certain level of prices for goods and services.
The desire to gain an advantage in the market stimulates the intensive innovative activity of manufacturers aimed at timely updating the technical and technological base of the enterprise, the development of new types of products and services, and also strengthens the motivational motives of employees to improve their skills, creative and high-performance work.
Market relations are of a general nature, extend to all economic spheres and regions of the country, penetrate into all parts of the economic system of the state. Many subjects enter into these relations, and a variety of goods and services enter the sphere of circulation, which formulates a complex and multidimensional market structure.
The greatest coverage of market entities, their grouping taking into account the specific features of market behavior is achieved by identifying five main types of markets:
consumer market - individuals and households who buy goods or receive services for personal consumption;
Producer market - a set of individuals and enterprises that buy goods to use them in the production of other goods and services;
· the market of intermediate sellers (intermediaries) - a set of persons and organizations that become the owners of goods for resale or leasing them to other consumers with a profit for themselves;
· the market of public institutions that buy goods and services for public utilities or to support the activities of various non-profit organizations;
international market - foreign buyers, consumers, manufacturers, resellers.
The uninterrupted functioning of such a complex and multi-level system as the market requires a highly developed and widely branched general and special infrastructure that takes into account market features. The market infrastructure is a set of organizations (institutions) with different activities, providing effective interaction commodity producers and other market agents who carry out the circulation of goods, the promotion of the latter from the sphere of production to the sphere of consumption.
The most important elements of the market infrastructure include: commercial information centers, commodity, stock, currency exchanges; commercial, investment, emission, credit and other banks; transport and storage networks; communication systems, etc.
Principles of behavior of business entities in the market:
1. A special place is occupied by the principle of social partnership, which, based on the breadth of coverage of behavioral aspects and directions for their implementation, belongs to the basic ones, and therefore defines any developed market economy as socially oriented.
2. Others important principle market behavior is the principle of free enterprise.
In order to create a favorable economic environment, it is necessary to develop and comply with certain ethical norms for the behavior of business entities in any market. Along with general ethical values (mutual trust, decency, conscientiousness, honesty, respect for a person, faith in his strength, high motivation for creative work), they also include the rules of ethical behavior in business: loyalty to the word and helpfulness in relationships, business honesty and partner reliability. , trade secrets and other rules that meet the highest standards of business honor. All this taken together contributes to the formation of the company's image as a partner with whom long-term, reliable and mutually beneficial cooperation is possible, which is vital in a rapidly changing market environment.
In modern conditions, the effectiveness of enterprises' activities largely depends on the state. The state influences all spheres of the society's economic activity by performing legal, economic, social, defense, managerial and other functions, tk. the market cannot regulate economic and social processes in the interests of the whole society. The prerogative of the state is to ensure proper law and order in the country and its national security, which is the basis for the development of entrepreneurship and the economy.
State regulation in market conditions is a legislatively formalized system of external influence on the finances of enterprises.
The state forms financial policy at the macro level and carries out legislative regulation of finance at the micro level. It determines the procedure for the formation, distribution and use of centralized funds of financial resources, which serve as one of the sources of financing for enterprises.
The main directions of state regulation of the financial activities of enterprises are: the tax system, pricing, foreign economic activity, money circulation, lending, forms of payments and settlements, organization of circulation of securities, budget financing, composition and competence of government bodies in resolving financial issues, state guarantees, licensing certain types of activities.
The mechanism of state influence on entrepreneurial activity is economic (indirect) and administrative (direct) methods. They should be used in combination when conducting fiscal, investment, price, depreciation, monetary and other policies in such a way as not to destroy market fundamentals and prevent crisis phenomena.
The economic methods (indirect) of the state's influence on entrepreneurial activity are quite diverse. The main ones are: taxes; ways to redistribute income and resources; pricing; state entrepreneurial activity; credit and financial mechanisms, etc.
Administrative methods (direct) should be used if economic methods are unacceptable or not effective enough. These include: restrictions; prohibitions; limits; quoting; and etc.
Economic and administrative methods have an impact on the financial activities of enterprises.
Enterprise finances serve as the main instrument of state regulation of the economy. With their help, the regulation of the reproduction of the produced product is carried out, the financing of the needs of expanded reproduction is ensured on the basis of the optimal ratio between the funds allocated for consumption and for accumulation. Enterprise finance can be used to regulate sectoral proportions in a market economy, help accelerate the development of individual sectors of the economy, create new industries and modern technologies, and accelerate scientific and technological progress.
World experience shows that in conditions of economic reform, in crisis situations, the role of the state increases, in conditions of stability and recovery it decreases.
Financial management as a science is a system of principles, methods for developing and implementing management decisions related to the formation, distribution and use of financial resources of an enterprise and the organization of its cash flow.
Financial management can be defined as a purposeful activity of the subject of management (top management of the enterprise and its financial services), aimed at achieving the desired financial condition of the managed object (enterprise), in other words, managing the enterprise to achieve its intended financial results and their effectiveness.
The purpose of financial management is to maximize the wealth of owners with the help of a rational financial policy based on: long-term profit maximization; maximizing the market value of the firm.
Tasks of financial management:
Ensuring the formation of the volume of financial resources necessary to ensure the intended activities;
Ensuring the most efficient use of financial resources;
Optimization of cash flow;
Cost optimization;
Ensuring profit maximization of the enterprise;
Ensuring minimization of the level of financial risk;
Ensuring the constant financial balance of the enterprise;
Ensuring sustainable growth of economic potential;
Assessment of the potential financial capabilities of the enterprise for the coming periods;
Ensuring target profitability;
Bankruptcy avoidance (anti-crisis management);
Ensuring the current financial stability of the organization.
Carrying out its main goal, financial management performs certain functions. The functions of financial management are divided into two groups: the functions of financial management as a control system; functions of financial management as a special area of enterprise management.
The main functions of financial management as a control system: the function of developing the financial strategy of the enterprise; organizational function; information function; the function of analyzing various aspects of the financial activity of the enterprise; planning function; stimulating function; control function.
Functions of financial management as a special area of enterprise management: asset management; capital Management; investment management; cash flows; financial risks.
As a management process, financial management is based on the use of a financial mechanism - a system of organization, planning and use of financial resources. The financial mechanism is a system of basic elements that regulate the process of development and implementation of management decisions in the field of finance, that is, the financial management system of enterprises.
The financial mechanism should contribute to the most complete effective implementation of its functions by finances, their interaction.
As a system of basic elements regulating the process of development and implementation of management decisions in the field of financial activities of enterprises, the financial mechanism includes: state legal regulation; market regulation (supply-demand); internal regulatory mechanism (plans, regulations, procedures, organizational structure); a system of methods and techniques for managing the financial activities of an enterprise (technical and economic calculations, balance sheet, economic and statistical, economic and mathematical, comparisons, etc.).
The structure of the financial mechanism includes financial: instruments (various forms of short- and long-term investment, which are traded on financial markets); techniques and methods; supporting subsystems (personnel, legal, regulatory, information, technical and software).
Financial assets include: cash; contractual right to receive money or any other type of financial assets from another enterprise; a contractual right to exchange financial instruments with another enterprise on potentially favorable terms; shares of another company.
Financial liabilities include contractual obligations: to pay cash or provide some other type of financial asset to another entity; exchange financial instruments with another company on potentially unfavorable terms (in particular, such a situation may arise in the event of a forced sale of receivables).
Financial instruments are divided into: primary (cash, securities, loans, accounts payable and receivable for current operations); secondary, or derivatives - contracts and securities issued on the basis of primary contracts and securities (financial options, futures, forward contracts, interest rate swaps, currency swaps).
Methods (techniques) of financial management (methodological tools for assessing the finances of an enterprise) are diverse. The main ones are: budgeting; the financial analysis; management of attraction of borrowed funds; management of free funds placement; investment management; issue, capital management; bankruptcy and anti-crisis management; factoring; leasing; insurance; mortgage transactions; stimulation, etc.
The main predictive-analytical methods and techniques of financial management are divided into formalized and non-formalized.
Non-formalized ones are based on the description of analytical procedures at the logical level, and not with the help of strict analytical dependencies. These include methods: expert assessments, scenarios, psychological, morphological, comparisons, building systems of indicators, analytical tables.
Formalized predictive-analytical methods of financial management are formalized analytical dependencies. These methods, together with models, are used to assess and predict the financial condition of enterprises:
1. Descriptive models are models of a descriptive nature. With their help, mainly, the financial condition of the enterprise is assessed, they use information from financial statements.
2. Predictive models are predictive models used to predict the income of an enterprise and its future financial condition.
3. Normative models make it possible to compare the actual performance of enterprises with the expected ones calculated according to the budget. These models are used mainly in internal financial analysis, as well as in management accounting, in particular in cost management.
As part of the mechanism of financial management, an important role is given to systems and methods of internal financial control.
Internal financial control is a process organized by the enterprise to verify the execution and ensure the implementation of all management decisions in the field of financial strategy and the prevention of crisis situations leading to its bankruptcy.
The financial management system includes both information support and financial management based on the information received.
The current economic situation forces business to be especially attentive to intra-company planning. It is the business plan that is the most progressive form of such planning. Success in the business world is critically dependent on understanding the current state of affairs, having a clear idea of what the business intends to achieve, and planning the transition from one state to another.
A business plan is a document that analyzes the main problems that an entrepreneur may face and determines the main ways to solve them. It is with the help of a business plan that a manager is able to assess what market shocks the business can withstand and adequately meet the emergence of many unexpected problems. It is unrealistic, of course, to eliminate all errors, but business planning allows you to evaluate possible further actions, monitor the state and development of the business, and not just specifically respond to events. That is why one of the most used terms in the modern market economy is "business plan".
“A business plan is a plan for the development of an enterprise, necessary for improving existing and developing new areas of an enterprise, creating new types and forms of business.
A business plan is a comprehensive document that reflects the most important aspects and data that provides an objective and holistic view of the current and future state of the business. In other words, a business plan is a planned business optimization program. Such a plan can be developed both for an enterprise that is just being created, and for an already existing economic organization at the next stage of its development, taking into account the stage of their life cycle.
Business planning allows you to solve the following problems:
Determine the degree of viability and future sustainability of the enterprise, reduce the risk in business activities;
Specify business prospects in the form of a planned system of quantitative and qualitative indicators of development;
Attract the attention of potential investors to the company to its capabilities;
Help to gain a positive planning experience.
Unlike a traditional organization plan, a business plan takes into account the interests of all stakeholders. In addition to investors, such persons are potential consumers and suppliers of the company.
In relation to a novice entrepreneur, a business plan is a tool to attract the attention of investors. The quality of the submitted business plan is an indicator of the viability of the entrepreneur and his business.
The business plan contains the advantages of a flexible combination of production and market, financial and technical, internal and external aspects of the enterprise.
The business plan consists of the following sections:
1. Business concept (summary);
2. Current situation and short info about the enterprise;
3. Characteristics of the business object;
4. Market research and analysis;
5. Organizational plan;
6. Personnel and management;
7. Production plan;
8. Plan of marketing actions;
9. Potential risks;
10. Financial plan and financial strategy.
Both the structure and the content of the business plan are of great importance. Pay special attention to the title page and table of contents. The title page contains the following: title of the plan; the date of its preparation; who is the author of the plan, full name and address of the company for which the plan was developed.
It is useful to reflect title page an indication that the information contained in the document is not subject to disclosure.
The summary is prepared last, after the entire business plan as a whole has been drawn up. It should include all the main provisions and ideas of the business plan, as well as conclusions. The structure of the resume is as follows. First of all, the introduction, which includes the goals of the plan, characterizes the essence of the project.
Then the main content is highlighted: a brief presentation of all key elements business plan, its main parts (nature of activity, demand analysis, project cost, funding sources, etc.).
In conclusion, the main factors of the expected success of the business are summarized, data on the actions of management are presented.
The main part of the business plan is the financial section. It is based on three documents: balance sheet, income statement and balance sheet. This also includes a report on the movement of funds and some other documents. The text of the business plan is intended to include the justification of the parameters that formed the basis of all financial projections. The initial calculated data are: price, sales forecast, cost structure, cost of fixed assets and depreciation, number of employees, their wages, the amount of working capital, the speed of their movement.
In the financial plan, all indicators are based on the estimates contained in the main parts of the business plan. Based on these data, capital investment schedules, the forecast of the cash flow statement, financial statement and balance sheet projections are developed. The financial plan is an informative document. The main place in it is occupied by the balance of the movement of funds, which shows what cash resources and when they will be needed, what they will be used for and what incomes are expected. The financial plan states the most likely option for business development. The objective of the financial plan is to demonstrate the features of business finance without excessive detail, however, so that the investor gets a comprehensive understanding of the financial mechanism of the project.
The financial cut of the business plan is represented by the sections "Financial plan" and "Funding strategy". The financial plan is the final one and is intended to summarize the materials of all previous sections in cost form. Commercial organizations are interested in financial planning in order to succeed in business activities, in order to fulfill their obligations to the budget, banks, insurance companies and other institutions in a timely manner. To do this, it is important to calculate income, expenses, profits in advance, take into account the consequences of inflation, changes in the situation, the financial market and other factors.
In the "financial plan" section, the issues of financial support of the company and the most efficient use of available funds are considered. The purpose of financial planning is to determine the possible volumes of financial resources, capital and reserves based on forecasting the value of financial indicators. These indicators include, first of all, own working capital, depreciation, accounts payable, permanently at the disposal of the enterprise, profit, taxes paid from profit, etc. Financial support for the business is carried out on the basis of a financial plan, which is a balance of its income and spending or budget.
“Financial planning is a kind of management activity aimed at identifying the required amount of financial resources, income, their optimal distribution and use in order to ensure the financial stability of the organization.
The main tasks of financial planning include providing the business process with the necessary financial resources, determining the planned volumes of the necessary funds and directions for their spending; establishment and development of financial relations with the budget, banks, insurance organizations and other business entities, observance of the interests of shareholders and investors; identification of ways for the most rational investment of capital and reserves for its effective use; increase profits through the rational use of funds and exercise control over education and spending money and capital investments.
Financial planning is used in capital budgeting and evaluation of investment projects, as well as long-term projects, as well as a long-term financing strategy.
The process of financial planning includes an analysis of the financial performance of the enterprise for the previous period. The calculation of indicators is based on the main financial documents of the company - balance sheet, income statement, cash flow statement, long-term financial planning and operational financial planning. Financial planning ends with the practical implementation of plans and control over their implementation.
When planning financial indicators, different methods are used: normative, analytical, balance, economic and mathematical modeling.
The essence and content of the normative method of planning financial indicators is that, on the basis of pre-established norms and technical and economic standards, the need of an enterprise for financial resources and their corresponding sources is determined. Such standards are the rates of taxes, tariff contributions and fees, the norms of depreciation, the norms of the need for working capital, etc.
The calculation and analytical method of planning financial indicators consists in the fact that, based on the analysis of the indicator taken as a base, and the indices of its change in the planning period, the planned value of this indicator is calculated. This method planning is used in the absence of technical and economic standards, and the relationship between indicators can be established not directly, but indirectly, based on an analysis of their dynamics and relationships. This method is based on the use of expert judgment. The calculation and analytical method is usually used when planning profits and incomes, when determining the amount of deductions from profits to accumulation, consumption, reserve, etc. funds.
The use of the balance method of planning financial indicators consists in the fact that by building balances, the link between the available financial resources and the actual need for them is achieved. This method is used when planning the distribution of profits and other financial resources, planning the receipt of funds in various financial funds, etc.
Economic and mathematical modeling in the planning of financial indicators allows us to identify a quantitative expression of the relationship between financial indicators and the factors that determine them. This connection is expressed by an economic-mathematical model representing a mathematical description of the economic process, i.e. representation of factors that characterize the structure and patterns of change in a given economic phenomenon with the help of mathematical symbols and techniques.
In the conditions of market relations, the enterprise independently develops its plans, determines the prospects for development, achieving high economic results. Hence, maximum attention is paid to the most complete identification of internal reserves, the efficient use of all types of resources, and the optimization of the organization of production and labor.
General approach: the operation of the enterprise must be profitable and provide cash receipts and profits in amounts that satisfy the stakeholders (owners, managers, the state, etc.).
“Financial planning at an enterprise is a systematic determination of all its income and expenditure of funds in order to ensure the successful development of an enterprise through the preparation of financial plans, the content and purpose of which is determined by the tasks and objects of planning.” Financial plans are strategic (perspective), current and operational.
Strategic financial planning is a study of possible ways to develop the finances of commercial organizations for the future. It is designed to ensure high efficiency of management, the growth of financial resources and income, their rational use, and the strengthening of the financial position of the enterprise.
The task of strategic planning is to identify the problems that a business will face in realizing its goals in an uncertain, competitive market environment, and to determine specific ways to solve such problems. It is not only about strategic financial planning, but also about financial forecasting, the development of a probabilistic view of the limiting and desirable states of the enterprise in the future.
The leading financial plan in modern conditions is the current one. It is developed for a year, half a year, a quarter, a month and represents a balance of income and expenses of a commercial organization (or its budget). It reflects in monetary terms all aspects of the financial and economic activities of the enterprise, the income and savings received by it, and the expenditure of funds. Such a financial plan (budget) is necessary for any commercial organization.
Operational financial planning acquires particular relevance in market conditions. The need to develop such a plan is associated with changes in the terms of settlements and crediting of enterprises, large penalties for late payments, large volumes of receivables and payables. From here - increased attention to the daily balance of receipts and payments, and, if necessary, to the timely adoption of measures to attract additional funds.
The role of operational financial plans, first of all, in determining the specific financial and economic situation, more precisely, the sequence and timing of financial transactions with optimal maneuvering of own, attracted and borrowed financial resources to obtain the greatest financial result.
Operational financial planning includes the preparation and execution of a credit plan, cash plan, payment calendar.
Credit plan - a plan for the receipt of borrowed funds and their return within the terms specified by the agreements. When a business is in need of a short-term loan, Required documents submitted to the bank, and a loan service agreement is concluded.
Cash plan - a plan for the turnover of cash, which reflects the receipts and payments of cash through the cash desk of the enterprise. The main thing is to provide the necessary needs of the enterprise with cash in a timely manner. Cash plans, control over their implementation help to ensure the solvency of the enterprise. Cash plan - quarterly.
A very important role is played by the payment calendar - a program for optimizing the operational financial activities of an enterprise, in which sources of cash receipts (sales proceeds, loans and borrowings, other receipts) are calendar-related with expenses. The payment calendar records income, receipts of funds, relations with the budget for taxes, credit relations. It covers, therefore, the movement of all the funds of the organization. Its main goal is to control solvency and creditworthiness.
The payment calendar is based on the refinement of the specification of planned indicators and the breakdown of these indicators by months, five days, weeks, decades. In the payment calendar, the receipt of money and their expenses are balanced.
The results of the financial activity of the enterprise must represent a specific system of planning and reporting documents. Such documents provide data for the calculation and analysis of the financial performance of the company and serve as the basis for the preparation of financial forecasts. The main financial documents include a forecast of financial results, a cash flow plan, and a project balance.
For the preparation of forecast financial documents, the sales forecast method is used. The revenue forecast in monetary terms is the basis on which other costs are based. Sales volume actively influences the formation of current profit. Unlike the balance sheet, which represents the static situation of the company's finances, the forecast of financial results gives the dynamics of its financial operations. This forecast compares the costs and results of the enterprise, reveals the amount of net profit.
A cash flow plan demonstrates the process of receipts and expenditures of funds within a business. It helps to determine the need for capital and evaluate the effectiveness of its use. This plan is compiled in dynamics, for example, by year or by quarter. It allows you to control the timing of cash receipts, check the future liquidity of the enterprise.
The project balance records the results of the economic and financial performance of the company for the reporting period. It acts as the final part of the financial planning documents.
The main thing in the balance sheet method of planning financial indicators is in forecasting key balance sheet items (cash, other current assets - raw materials, amounts receivable, work in progress and finished products, fixed, equity and borrowed capital, as well as current liabilities necessary for the normal functioning of the enterprise). The company's balance sheet as a reporting document is the basis for analyzing financial performance.
When forming a financial plan, an enterprise is able to more successfully solve key tasks: identifying reserves for increasing the enterprise's income, as well as optimal ways to mobilize them; more rational use of financial resources, determination of the most rational direction of investments, providing the greatest profit within the framework of the plan; a guarantee of coordination of indicators of the production plan of the enterprise with financial resources and, finally, the search and implementation of optimal financial relationships with the budget, banks, and other creditors.
The leaders of many enterprises (especially small ones) believe that they should not waste time on business planning, since the economic situation is changing so quickly that they have to constantly make changes and additions to the original scheme. That is, they believe that in a rapidly changing economic environment, it is enough to keep everything in mind and there is no need to spend time planning their actions.
However, experts and managers of large enterprises consider business planning to be a higher-order activity and believe that it provides many benefits:
Helps the management of the company to think ahead;
Promotes clear coordination of ongoing efforts;
Forms a system of target performance indicators for subsequent control;
Prepares the enterprise for possible sudden changes;
Demonstrates the interconnection of the duties of all officials.
So, it makes sense to develop a business plan even in constantly changing conditions, if there is a desire that the normal activity of the enterprise should not be disturbed by the course of future events.
In general, an increase in the level of financial planning is associated with a more thorough definition of future expenses and incomes, an accurate calculation of the required funds and a correct assessment of future financial results. High-quality financial planning contributes to the stability of the financial situation, the stability of solvency, the constant availability of funds, the optimal use of working capital, and the better organization of settlements.
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5. Financial management: Textbook / Ed. N.F. Samsonov. - M.: UNITI, 2004. - 468s.;
6. Finance and credit: Proc. allowance / Ed. A.M. Kovaleva. - M.: Finance and statistics, 2003. - 574 p.;
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The most important element of entrepreneurial activity is planning, including financial. Effective financial management of the company is possible only when planning all financial flows, processes and relations of the firm.
Planning at the enterprise was also carried out in the conditions of an administrative-command economy. The plans of enterprises in those years were determined by the tasks of the sectoral ministries and turned out to be cumbersome and difficult to apply in practice. In a market economy, planning in an entrepreneurial firm is intra-company, i.e. does not carry directive elements. The main goal of intra-company financial planning is to provide optimal opportunities for successful economic activity, obtain the necessary funds for this, and ultimately achieve the profitability of the company. Planning is connected, on the one hand, with the prevention of erroneous actions in the field of finance, on the other hand, with a decrease in the number of unused opportunities. Thus, financial planning is the process of developing a system of financial plans and planned (normative) indicators to ensure the development of an entrepreneurial firm with the necessary financial resources and improve the efficiency of its financial activities in the future period.
The main objectives of the financial planning of the company's activities are:
providing the necessary financial resources for production, investment and financial activities;
determination of ways of effective investment of capital, assessment of the degree of its rational use;
identification of on-farm reserves for increasing profits through the economical use of funds;
establishment of rational financial relations with the budget, banks and contractors;
observance of the interests of shareholders and other investors;
control over the financial condition, solvency and creditworthiness of the company.
The market economy requires entrepreneurial organizations to have a qualitatively different financial planning, since the organizations themselves bear responsibility for all the negative consequences and miscalculations of the plans being developed.
However, along with the factors that require the widespread use of financial planning in the current economic conditions, there are also factors that limit its use by entrepreneurial firms in Russia, such as: a high degree of uncertainty on Russian market associated with ongoing global changes in all spheres of public life (it is their unpredictability that makes planning difficult); lack of an effective regulatory framework in the field of intra-company financial planning; limited financial opportunities for the implementation of serious financial developments in the field of planning for many entrepreneurial firms.
Large companies have great opportunities for effective financial planning, as they have enough financial resources to attract highly qualified specialists to ensure large-scale planned work in the field of finance.
The value of financial planning for a company is that it:
embodies the developed strategic goals in the form of specific financial indicators;
provides opportunities to determine the viability of financial projects;
serves as a tool for obtaining external financing.
One of the planning documents developed by an entrepreneurial firm is a business plan. Its compilation has several goals, which indicate that most often a business plan is developed to justify the receipt of funds from external source. A business plan can be defined as an internal planning document that sets out the main aspects of planning the production and commercial activities of the company, analyzes the risks that it may face, and also determines ways to solve financial and economic problems.
All the main structural divisions of an entrepreneurial firm, including the financial department or department, take part in the development of a business plan. It is developed, as a rule, for 3-5 years, while the indicators of the first planned year are calculated on a monthly or quarterly breakdown. The business plan reflects all aspects of the production, commercial and financial activities of the company and, as a rule, includes the following sections:
summary (conclusions);
company description;
description of products (works, services);
analysis of markets and competitors;
marketing plan;
production plan;
organizational plan;
financial plan;
applications.
In Russia, at present, the legislation does not fix the obligation to develop a business plan by entrepreneurial organizations; accordingly, there is no regulated form and structure of it, therefore, firms, depending on the goals for which a business plan is being developed, can change its structure and content. The exception is the structure of the financial recovery business plan, which is approved by the Federal Office for Insolvency (Bankruptcy) and is mandatory for all enterprises and organizations in Russia. In this case, the business plan includes the following sections:
- general characteristics of the enterprise;
– brief information on the financial recovery plan;
– analysis of the financial condition of the enterprise;
– measures to restore solvency and support efficient operations;
– market and competition;
- activities in the field of enterprise marketing;
- production plan;
- financial plan .
In addition, when developing a business plan in the event of a reform of an entrepreneurial firm, one should take into account the recommendations for drawing up a business plan set out in the Guidelines for the Reform of Enterprises (Organizations) approved by the Ministry of Economy of the Russian Federation on October 1, 1997.
On the one hand, a business plan is a serious analytical document, and on the other hand, it is a means of advertising, so it must be written in a business language that is understandable to financiers, bankers, and business partners. The information presented in it should be clear, concise, but at the same time concise. When preparing a business plan, it should be borne in mind that banks and investment companies are considering many proposals. In order not to get lost in this multitude, the business plan must be prepared taking into account the requirements and standards of organizations and individuals to whom this document is supposed to be presented.
The most important part of the business plan is the financial plan, which summarizes the materials of the previous sections and presents them in terms of value. This section is necessary and important for both entrepreneurial firms and investors and lenders.
Firms must know the sources and amount of financial resources required for the implementation of the project, the direction of the use of funds, the final financial results of their activities. Investors and creditors, in turn, should have an idea of how cost-effectively their funds will be used, what is the payback period and return.
The financial plan of the business plan includes a number of documents under development, including:
forecast of sales volumes;
forecast of income and expenses;
forecast of cash receipts and payments;
consolidated balance sheet of assets and liabilities;
a plan for the sources and use of funds;
calculation of the break-even point (self-sufficiency).
The forecast of sales volumes is developed taking into account the indicators of the marketing plan (which is part of the business plan) and is based on information about the expected sales volumes for each product and the expected unit price of each product. This forecast can be presented in the form of a table.
The forecast of income and expenses is made in order to show how profit will be formed and changed, and is developed, as a rule, for the first three years, and the data for the first year should be presented in a monthly breakdown.
The development of this document allows an entrepreneurial firm to identify such important points in its activities as the profitability of output, its profitability, the level of production and non-production costs, the relationship of the company with the budget system, the amount of expected net profit, etc.
The forecast of cash receipts and payments estimates the needs of an entrepreneurial firm in cash for its normal functioning. It is also developed to check the synchronism of cash receipts and payments, the liquidity of the company, i.e. availability on its account of funds necessary for repayment of financial obligations.
After making a forecast of income and expenses and a forecast of cash receipts and payments, based on the indicators contained in them, a consolidated balance sheet of assets and liabilities of an entrepreneurial firm can be developed. When developing the financial section of a business plan, it is recommended to draw it up at the beginning and end of the first year of the project, since this section is of greater interest to the company itself and is not so important for creditors and investors
The forecast for the sources and use of funds is designed to display the sources of funds and their use, as well as changes in the company's assets over a certain period of time. It makes it possible to determine the relationship between possible sources of funds and the working capital of an entrepreneurial firm. Based on this forecast, the company's managers, shareholders, investors and creditors can more accurately determine the financial position of the company, evaluate the effectiveness of the adopted financial policy and the results of economic activity.
When developing a business plan for an entrepreneurial firm, it is quite important to determine when and under what conditions the return on investment will begin, which makes it possible to calculate the break-even point (self-sufficiency). The break-even point shows at what volume of production and sales of products the proceeds from sales are equal to the costs of production. It makes sense for an entrepreneurial firm to produce products if the project allows for the production and sale of goods in excess of the break-even threshold, only then the project begins to make a profit. If output is below the breakeven threshold, the firm will incur losses.
The final part of the financial section of the business plan outlines the financing strategy for the proposed business plan. In this part, planners should address the following questions:
how much money is needed to carry out the event;
what are the sources of these funds; when you can expect a full return of borrowed funds and the receipt of income by investors; what will be the income?
It should be noted that it is necessary to take into account the real economic conditions and the financial policy of the state when developing the financial section of the business plan, otherwise the results obtained may be far from real.
2. METHODS OF FINANCIAL PLANNING
Based on the goals facing financial planning in the company, it can be noted that this is a complex process that includes several stages.
At the first stage, the financial performance of the company for the previous period is analyzed on the basis of the most important financial documents - balance sheet, income statement, cash flow statement. The main attention is paid to such indicators as the volume of sales, costs, the amount of profit received. The analysis carried out makes it possible to evaluate the financial results of the company and identify the problems facing it.
The second stage is the development of a financial strategy and financial policy in the main areas of the company's financial activities. At this stage, the main forecast documents are compiled that relate to long-term financial plans and are included in the structure of the business plan if it is developed by the company.
During the implementation of the third stage, the main indicators of forecast financial documents are specified and specified through the preparation of current financial plans.
At the fourth stage, the indicators of financial plans are docked with production, commercial, investment, construction and other plans and programs developed by an entrepreneurial firm.
The fifth stage is the implementation of operational financial planning through the development of operational financial plans.
The process of financial planning in the company ends with analysis and control over the implementation of financial plans. This stage consists in determining the actual final financial results of the business firm, comparing it with the planned indicators, identifying the reasons for deviations from the planned indicators, c. development of measures to eliminate negative phenomena.
The process of drawing up the financial plan of the enterprise is to calculate its indicators. At the same time, they use various ways and methods of calculation: settlement and analytical. balance, normative, method of optimizing planned decisions, economic and mathematical modeling.
The calculation and analytical method is one of the methods most used in a market economy for planning financial indicators. Financial indicators are calculated on the basis of an analysis of the achieved values of indicators for the past period, their development indices and expert assessments of this development in the planning period. The relationship of financial indicators with production, commercial and other indicators is being studied. The calculation and analytical method is used mainly in the calculation of planned indicators for the volume of revenue, income, profit, consumption and accumulation funds of an enterprise.
The balance method is used when planning the distribution of received financial resources. Its essence is to build a balance of available funds and the need for their use. The balance then looks like this:
He + P \u003d P + Ok,
where He
-
balances at the beginning of the year;
P- receipt of funds in the planned period;
R - expenses in the planned period;
OK
-
balance at the end of the planning period.
The normative method is used in the presence of established norms and standards, for example, depreciation rates, tax rates and tariffs for contributions to state non-budgetary funds (Pension, Medical Insurance, etc.), working capital requirements, etc.
The standards used in financial planning are established:
Authorities and administrations at the federal, regional, local levels (depreciation rates, taxes, contributions to extra-budgetary funds);
Departments (norms of marginal levels of profitability, marginal deductions to reserve funds, etc.);
Enterprises (norms of the need for working capital, accounts payable, stocks and raw materials, deductions to the repair fund, etc.).
The method of optimizing planned decisions consists in developing a number of options for planned indicators and choosing the optimal one from them. As criteria for choosing options for indicators for their subsequent inclusion in the financial plan, the following can be used: minimum reduced costs, maximum reduced profit, minimum current costs, maximum profit per ruble of invested capital, minimum time for capital turnover, maximum income per ruble of invested capital, etc. .
Economic and mathematical modeling
used in forecasting financial performance for a period of at least five years. Economic and mathematical models make it possible to quantify the relationship between financial indicators and the factors influencing them. Such models are built on functional and correlation relationships. The use of economic and mathematical models makes it possible to quickly calculate several options for indicators and choose the most optimal one.
3. TYPES OF FINANCIAL PLANS AND THEIR ROLE IN MANAGEMENT OF THE ENTERPRISE
Financial planning in an entrepreneurial firm includes three main subsystems:
advanced financial planning;
ongoing financial planning;
operational financial planning.
Each of these subsystems has certain forms of developed financial plans and clear boundaries of the period for which these plans are developed.
All subsystems of financial planning are interconnected and carried out in a certain sequence. The initial stage of planning is the forecasting of the main directions of the financial activity of the company, carried out in the process of long-term planning. At this stage, the tasks and parameters of the current financial planning are determined. In turn, the basis for the development of operational financial plans is formed precisely at the stage of current financial planning.
Advanced financial planning determines the most important indicators, proportions and rates of expanded reproduction, it is the main form of realization of the company's goals.
Long-term financial planning in modern conditions covers a period from 1 year to 3 (rarely - up to 5) years. However, such a time interval is conditional, since it depends on economic stability in the country of operation, the ability to predict the volume of financial resources and the direction of their use.
Long-term planning includes the development of the financial strategy of the enterprise and the forecasting of financial activities. The development of a financial strategy is a special area of financial planning, since, being an integral part of the overall strategy for the economic development of the company, it must be consistent with the goals and directions formulated by the overall strategy. At the same time, the financial strategy itself has a significant impact on the formation of the overall strategy for the economic development of the company. This happens due to the fact that a change in the situation on the financial market entails an adjustment in the financial, and then, as a rule, in the general strategy of the company's development. In general, financial strategy is the definition of long-term goals of the company's financial activities and the choice of the most effective ways and ways to achieve them.
The process of forming the financial strategy of the company includes the following main stages:
determination of the strategy implementation period;
analysis of the factors of the external financial environment of the company;
formation of strategic goals of financial activity;
development of the company's financial policy;
development of a system of measures to ensure the implementation of the financial strategy;
evaluation of the developed financial strategy .
An important point in the development of the company's financial strategy is to determine the period of its implementation. The duration of this period depends primarily on the duration of the period of formation of the overall development strategy of the company. In addition, it is influenced by other factors, such as:
dynamics of macroeconomic processes;
changes taking place in the financial market;
industry affiliation and specifics of the company's production activities.
Quite important attention in the process of forming a financial strategy is given to the analysis of environmental factors by studying the economic and legal conditions of the company's financial activities, in addition, special attention is paid to taking into account risk factors.
The formation of the strategic goals of the financial activity of the company is the next stage of strategic planning, the main task of which is to maximize the market value of the company. The system of strategic goals of the company should be formed clearly and concisely, reflecting each of the goals in specific indicators - standards. Usually, the following are used as such strategic standards: the average annual growth rate of own financial resources generated from internal sources; minimum share equity; return on equity of the firm; the ratio of current and non-current assets of the company, etc.
Based on the financial strategy, the financial policy of the company is determined in specific areas of financial activity: tax, depreciation, dividend, emission, etc.
As a result of the development of a system of measures that ensure the implementation of the financial strategy, "responsibility centers" are formed in the company, the rights, duties and responsibilities of their leaders for the results of the implementation of the financial strategy of the company are determined.
The final stage in the development of the company's financial strategy is to evaluate the effectiveness of the developed strategy, which is carried out in several ways.
Firstly, it is assessed to what extent the developed financial strategy is consistent with the overall strategy of the company, by identifying the degree of consistency between the goals, directions and stages of implementation of these strategies.
Secondly, the consistency of the company's financial strategy with the predicted changes in the external business environment is assessed.
Thirdly, the feasibility of the developed financial strategy is assessed, i.e. the possibilities of the company in the formation of its own and attraction of external financial resources are considered.
In conclusion, the effectiveness of the financial strategy is evaluated. Such an assessment can be based on predictive calculations of various financial indicators, as well as on the basis of a forecast of the dynamics of non-financial results of the implementation of the developed strategy, such as an increase in the business reputation of a company, an increase in the level of manageability of the financial activities of its structural divisions, etc.
The basis of long-term planning is forecasting, which is the embodiment of the strategy of an entrepreneurial firm in the market. Forecasting consists in studying the possible financial condition of the company in the long term. Forecasting is based on the generalization and analysis of available information with subsequent modeling of possible scenarios for the development of situations and financial indicators. An important point in the implementation of forecasting is the recognition of the fact of the stability of changes in the performance of the company from one reporting period to another.
Current planning system The financial activity of the company is based on the developed financial strategy and financial policy for certain aspects of financial activity. This type of financial planning consists in the development of specific types of current financial plans that enable the company to determine everything for the coming period, the sources of financing for its development, form the structure of its income and costs, ensure its constant solvency, and also determine the structure of the assets and capital of the company on end of the planning period.
The result of the current financial planning is the development of three main documents;
cash flow plan;
profit and loss plan;
balance sheet plan.
The main purpose of constructing these documents is to assess the financial position of the company at the end of the planning period. The current financial plan is drawn up for a period equal to one year, broken down by quarters, since such periodization complies with legal reporting requirements. The current financial plans of an entrepreneurial firm are developed on the basis of data that characterize:
the company's financial strategy;
results of financial analysis for the previous period;
planned volumes of production and sales of products, as well as other economic indicators of the company's operating activities;
a system of norms and standards for the costs of individual resources developed at the company;
the current taxation system;
the current system of depreciation rates;
average rates of credit and deposit interest in the financial market, etc.
To draw up financial documents in the process of current financial planning, it is important to correctly determine the volume of future sales (volume of sales). This is necessary for the organization of the production process, the effective distribution of funds. As a rule, sales forecasts are made for three years, the annual forecast is divided into quarters and months, while the shorter the forecast period, the more accurate and specific the information contained in it. The sales volume forecast helps to determine the impact of production volume, the price of products sold on the financial flows of the company. The forecast of sales volumes for a specific type of product can be presented in the form of a table.
Based on the sales forecast data, the required amount of material and labor resources, and other component production costs are also determined. Using the data obtained, a planned profit and loss statement is developed, with the help of which the amount of profit received in the upcoming (planned) period is determined.
Particular attention in drawing up the plan of the profit and loss account is given to determining the proceeds from the sale of products. As a rule, the value of sales proceeds for the previous year is taken as the starting point. Then this value changes in the current year, taking into account changes:
cost of comparable products;
prices for products sold by the company;
prices for purchased materials and components;
assessment of fixed assets and capital investments of the company;
remuneration of employees of the firm.
Correctly determining the planned amount of depreciation for the company is quite important due to the fact that it is part of the cost of production. It is also important to correctly plan the costs of raw materials and materials, direct labor costs and overhead costs. In modern economic conditions, the method of cost planning by responsibility centers is widely used. In this case, the center of responsibility is each division of an entrepreneurial firm, the head of which is responsible for the costs of his division.
Cost planning by responsibility centers is carried out by developing a cost matrix, which includes:
the dimension of the responsibility center, i.e. an indication of the department in which this cost item occurs;
dimension of the production program, i.e. indication of the purpose of the occurrence of this cost item;
the dimension of the cost element, i.e. specifying the type of resources used.
As a result, when summing up the costs in the cells by the rows of the matrix, planned data on responsibility centers are obtained.
Next, a cash flow plan is developed. The need for its compilation is determined by the fact that many of the costs shown when decoding the profit and loss plan are not reflected in the procedure for making payments. The cash flow plan takes into account cash inflow (receipts and payments), cash outflows (costs and expenses), net cash flow (surplus or deficit). In fact, it reflects the movement of cash flows for current, investment and financial activities. Differentiation of activities in the development of a cash flow plan can improve the effectiveness of cash flow management in the process of carrying out the financial activities of the company.
The cash flow plan is compiled for the year, broken down by quarters and includes two main parts: receipts and expenses. The income section reflects proceeds from the sale of products, from the sale of fixed assets and intangible assets, income from non-sales operations and other income that the company expects to receive during the year.
The expenditure part reflects the costs of manufacturing sold products, the amount of tax payments, the repayment of long-term loans, the payment of interest for using a bank loan, and the directions for using net profit. This form of plan allows an entrepreneurial firm to check the reality of the sources of funds and the validity of expenses, the synchronism of their occurrence, and to determine in a timely manner the possible amount of need for borrowed funds.
The balance for each type of activity is formed as the difference between the total values of sections 1, 2, 3 of the revenue side of the plan and the corresponding sections of the expenditure side.
With the help of such a cash flow plan, an entrepreneurial firm, when planning, covers the entire turnover of funds, which makes it possible to analyze and evaluate cash receipts and expenditures and make prompt decisions on possible financing methods in the event of a shortage of these funds. In this case, the plan is considered to be finalized if it provides for sources to cover a possible shortage of funds.
The final document of the current annual financial plan is the planned balance of assets and liabilities (in the form of a balance sheet) at the end of the planning period, which reflects all changes in assets and liabilities as a result of planned activities and shows the state of property and finances of the entrepreneurial firm. The purpose of developing a balance plan is to determine the necessary increase in certain types of assets, ensuring their internal balance, as well as the formation of an optimal capital structure that would ensure sufficient financial stability of the company in the future period.
The balance sheet serves as a good check on the profit and loss plan and cash flow. In the process of its compilation, the acquisition of fixed assets, changes in the value of inventories are taken into account, planned loans, issuance of shares and other securities, etc. are noted.
In general, the process of current financial planning is carried out in an entrepreneurial firm in close connection with the process of planning its operations.
Operational financial planning. In order to control the receipt of actual revenue to the current account and the expenditure of cash financial resources, the enterprise needs operational planning, which complements the current one. This is due to the fact that the financing of planned activities should be carried out at the expense of the funds earned by the enterprise, which requires effective control over the formation and use of financial resources. The system of operational planning of financial activity consists in the development of a set of short-term targets for financial support of the main directions of the company's economic activity.
Operational financial planning includes the preparation and execution of the payment calendar, cash plan and calculation of the need for a short-term loan.
In the process of compiling a payment calendar, the following tasks are solved:
organization of accounting for the temporary docking of cash receipts and future expenses of the enterprise;
formation of an information base on the movement of cash flows and outflows;
daily accounting of changes in the information base;
analysis of non-payments (by amounts and sources of occurrence) and organization of specific measures to overcome them;
calculation of the need for a short-term loan in cases of temporary "inconsistency" of cash receipts and liabilities and prompt acquisition of borrowed funds;
calculation (by amounts and terms) of the company's temporarily free cash;
analysis of the financial market from the position of the most reliable and profitable placement of temporarily free funds of the company.
The payment calendar is compiled for a quarter, broken down by months and smaller periods. In order for it to be real, its compilers must monitor the progress of production and sales, the state of stocks, receivables in order to prevent non-fulfillment of the financial plan.
In the payment calendar, cash inflows and outflows must be balanced. A properly drawn up payment calendar allows you to identify financial errors, lack of funds, reveal the cause of such a situation, outline appropriate measures and, thus, avoid financial difficulties.
The information base of the payment calendar is:
product sales plan;
cost estimate for production;
capital investment plan;
enterprise account statements and annexes to them;
contracts;
internal orders;
salary payment schedule;
invoices;
established payment dates for financial liabilities.
The process of compiling a payment calendar can be divided into five stages:
choice of planning period. As a rule, this is a quarter or a month, at an enterprise where cash flows often change over time, shorter planning periods (decades) are possible;
calculation of the volume of possible cash receipts (income);
assessment of cash costs expected in the planning period;
the definition of the cash balance is the difference between the amounts of receipts and expenditures for the planning period;
Summing up shows whether the enterprise will have a shortage of funds or a surplus.
The excess of planned expenses over expected receipts means the insufficiency of one's own capabilities to cover them and may be a sign of a deterioration in the financial condition. In these cases, the following measures must be taken:
transfer part of non-priority expenses to the next calendar period;
to expedite, if possible, the shipment and sale of products;
take steps to find additional sources.
If there is a surplus of funds, then this to a certain extent indicates the financial stability and solvency of the enterprise. To obtain additional profit, these funds can be invested in short-term securities.
In many companies, along with the payment calendar, a tax calendar is drawn up, which indicates when and what taxes, in accordance with the law, the company must pay, which helps to avoid delays and sanctions. Some firms develop payment calendars for certain types of cash flows, for example, a payment calendar for settlements with suppliers, a payment calendar for debt service, etc.
In addition to the payment calendar, the enterprise must draw up a cash plan - a cash turnover plan that reflects the receipt and payment of cash through the cash desk. A cash plan is necessary to control the receipt and expenditure of cash.
Initial data for drawing up a cash plan:
expected payroll and consumption fund payments in terms of cash;
information about the sale of material resources or products to employees;
information about travel expenses;
information on other receipts and payments in cash.
The cash plan must be submitted by all entrepreneurial firms 45 days before the start of the planned quarter to the bank with which the firm has entered into an agreement on settlement and cash services.
The cash plan is necessary for the company in order to opportunities to more accurately represent the amount of obligations to the employees of the company for wages and other payments. A bank serving an entrepreneurial firm also needs its cash plan in order to draw up a consolidated cash plan to serve its customers on time.
The use of the considered systems and methods of financial planning makes it possible to ensure the purposefulness of the financial activity of an entrepreneurial firm and increase its efficiency.
BIBLIOGRAPHY
Belolipetsky V.G. Firm's finances.–M.: INFRA-M, 2008
Business planning / Ed. V.M. Popova, S.I. Lyapunova - M .: Finance and statistics, 2007.
Blagodatin A.A. etc. Financial Dictionary. - M.: INFRA-M, 2003.
Glazunov V.I. Firm finances. How to dispose of them in order to ensure her and her own prosperity. - M.: Economics, 2000.
Strategic planning / Ed. E.A. Utkina.–M., Tandem, 2003. Financial planning as part of a business plan; Financial management
Business planning in a commercial enterprise
financial planning- is the planning of financial resources and cash funds of the enterprise.
The need for financial planning as a special area of planned activity is due to the relative independence of the movement of funds in relation to material elements.
The object of financial planning are financial resources.
Purpose of financial planning- forecasting the solvency and financial stability of the enterprise. Planning of financial resources and investments guarantees the fulfillment of obligations to the budget, creditors and shareholders, provides financing for entrepreneurial activities.
The objectives of financial planning are:
Providing the necessary financial resources for operational, investment and financial activities;
Determining the ways of effective investment of capital, the degree of its rational use;
Identification of on-farm reserves for increasing profits through the economical use of funds;
Establishment of rational financial relations with the budget, banks and contractors;
Observance of the interests of shareholders and other investors;
Control over the financial condition, solvency and creditworthiness of the organization.
Principles of financial planning:
The principle of compliance - financing of current assets should be planned mainly from short-term sources. At the same time, for the modernization of fixed assets, long-term sources of financing should be attracted.
The principle of constant need - in the planned balance of the enterprise, the amount of working capital should exceed the amount of short-term debts, i.e. you can not plan a "weakly liquid" balance sheet.
The principle of excess funds - in the planning process, to have a certain reserve of funds to ensure reliable payment discipline in the event that any of the payers delays their payment compared to the plan.
The principle of return on investment. Borrowed capital is beneficial to attract if it increases the return on equity. In this case, the positive effect of the effect of financial leverage is ensured.
The principle of balancing risks - it is advisable to finance especially risky long-term investments at the expense of own funds.
The principle of adaptation to market needs - it is important for an enterprise to take into account market conditions and its dependence on the provision of loans.
The principle of marginal profitability - it is advisable to choose those investments that provide the maximum (marginal) profitability.
Stages of financial planning
Analysis of the financial situation;
Development of the overall financial strategy of the company;
Drawing up current financial plans;
Correction, linking and concretization of the financial plan;
Implementation of operational financial planning;
Implementation of the financial plan;
Analysis and control of the implementation of the plan.
Financial planning (depending on the content, purpose and objectives) can be classified into:
1) Advanced financial planning in modern conditions covers a period of time from one year to three years. It determines the most important indicators, proportions and rates of expanded reproduction, is the main form of realization of the goals of the organization. In the process of long-term planning, they receive their economic justification and refinement of the installations made in strategic planning.
Long-term planning includes the development of the financial strategy of the enterprise and the forecasting of financial activities. The development of a financial strategy is a special area of financial planning, since, being an integral part of the overall strategy for economic development, it must be consistent with the goals and directions formulated by the overall strategy. In turn, the financial strategy has an impact on the overall strategy of the enterprise.
The result of long-term planning is the development of three main financial forecast documents:
a) a planned profit and loss statement - in order to draw up forecast financial documents, it is important to correctly determine the volume of future sales (volume of products sold), the need for investment resources, and ways to finance these investments. Forecasting sales volumes begins with an analysis of current trends over a number of years, the reasons for certain changes. The next step in forecasting is to assess the prospects for further development of the enterprise's business activity from the standpoint of the formed portfolio of orders, the structure of products and their changes, the sales market, competitiveness and financial capabilities of the enterprise. Based on the sales forecast data, the required amount of material and labor resources is calculated, and other component production costs are also determined.
b) a planned cash flow statement - the cash flow forecast takes into account cash inflow (receipts and payments), cash outflows (expenses and expenses), net cash flow (surplus or deficit). In fact, it reflects the movement of cash flows from current, investment and financial activities
c) balance sheet forecast - the balance sheet forecast at the end of the planning period reflects all changes in assets and liabilities as a result of planned activities and shows the state of the organization's property and sources of financing. The purpose of developing a balance sheet forecast is to determine the required increase in certain types of assets, ensuring their internal balance, as well as the formation of an optimal capital structure.
2) Current financial planning (budgeting) - component long-term plan and is a specification of its indicators. The current financial plan is drawn up for a year.
Budgeting- this, on the one hand, is the process of drawing up financial plans, and on the other hand, the technology of financial planning, accounting and control of income and expenses received from business at all levels of management, which allows you to analyze the predicted and received financial indicators. The main object of budgeting is business. Not an enterprise, but business as a type or area of economic activity.
Budgeting performs the following main functions:
Planning. Assessment of the financial condition of the enterprise is based on the data of financial statements. However, if any problems are identified, it is too late to change something for the better. In other words, financial management tools are applicable when there is information about the expected future, and not about the past financial condition of the enterprise.
Accounting - budgeting - the basis for management accounting, i.e. development of a coordinate system for business.
Control over the increase in financial stability and improvement of the financial condition of the company as a whole and its individual structural divisions.
In addition, budgeting helps to choose the most promising areas for investment.
a) Operating budgets. In the process of their preparation, the projected sales and production volumes are transformed into quantitative estimates of income and expenses for each of the operating divisions of the organization. Operating budgets consist of:
sales budget;
Finished goods inventory budget;
production budget;
Budget of direct material costs;
Budget for direct labor costs;
General production budget
Business expenses budget;
Management expenses budget.
b) Financial (core) budgets:
Cash flow budget;
Budget of income and expenses;
Estimated balance.
c) Support budgets:
Initial capital cost plan;
Credit or investment budget.
3) Operational planning- development and communication to budget executors of payment calendars and other forms of operational planning targets on all major issues of financial activity (month, quarter, up to a year).
With the help of operational financial plans, the enterprise
Determines the amount of financial resources to ensure the current production and financial activities
Establishes the sequence and timing of certain financial transactions, taking into account the most effective maneuvering of own and borrowed funds
Carries out operational control over the implementation of plans and obligations in terms of production volume and sales of products, profits, payments to the budget, deductions to contentment authorities, settlements with a bank institution.
Operational financial planning includes the preparation of:
payment calendar;
Cash plan;
Calculation of the need for a short-term loan.
Payment schedule is the basis for the organization of operational financial work at the enterprise. This document reflects in detail the operational cash flow through settlement, current, currency, loan and other accounts of the enterprise. The receipt and expenditure of funds is planned in a specific sequence in terms of time, which allows timely settlements, transfer of payments to the budget and extra-budgetary funds.
cash plan- this is a plan for the turnover of cash of the enterprise, which is necessary to control their receipt and expenditure. It is developed to plan the turnover of cash for the quarter and is submitted to the bank institution with which the company has an agreement on settlement and cash services.
Calculations of the need for a short-term loan are compiled by the enterprise if it is in need of a short-term loan, and submitted to the bank in accordance with its requirement, after which a loan agreement is concluded. However, this must be preceded by a reasonable calculation of the amount of the loan, as well as the amount that, taking into account interest, must be returned to the bank. The effectiveness of the credited event or the expected revenue from the sale of products should ensure the timely repayment of the loan and exclude penalties.
All subsystems of financial planning in the enterprise are interconnected and carried out in a certain sequence. The initial stage of planning is long-term financial planning and forecasting of the main directions of the financial activity of the organization.
Financial plan - is the final section of business plans. It is developed as forecast financial documents summarizing the materials of all previous sections of the business plan in value terms. It is devoted to planning the financial support of the organization's activities in order to make the most efficient use of available financial resources. Includes:
Sales volume forecast
Income and expense plan
Directions for using net profit
Tax plan
Cash flow forecast
Forecast of the organization's balance sheet
The final section of the business plan is the financial plan. This section is necessary and important both for organizations and for their investors and creditors.
The structure and content of the financial plan depend on the potential contact audiences, i.e. from subjects who are potential "readers" of the business plan. If a business plan is developed as an internal document, then the main focus is on determining the sources and amounts of the necessary financial resources, as well as profitability indicators. In a business plan designed to receive external financing, the main attention should be paid to assessing short-term liquidity, which confirms the solvency of the organization and is a guarantee of loan security, and only secondarily consider profitability indicators.
The purpose of developing a financial plan is to determine the sources of financing for the organization's activities, to assess the ratio of income and expenditure of financial resources.
To achieve this goal, when forming a financial plan, it is necessary:
determine the conditions for maximizing the profit of the organization;
optimize the capital structure to ensure its financial stability;
ensure the investment attractiveness of the organization;
create an effective mechanism for managing financial resources (accounting, tax, credit, depreciation and dividend policies).
The development of a financial plan intended for foreign creditors has its own characteristics. In this case, the financial plan should include the following sections as mandatory elements:
1) profit and loss statement (income statement);
2) balance sheet (balance sheet);
3) cash flow plan.
These documents should be generated in accordance with the General Accepted Accounting Principles (GAAP).
In domestic practice, the financial plan, as a rule, includes:
1) forecast of sales volumes;
2) plan of income and expenses;
3) plan of cash receipts and payments;
4) balance of assets and liabilities;
5) a plan for the sources and use of funds.
Forecast of sales volumes
This forecast is developed taking into account the indicators of the marketing plan (see subsection 2.5) and is based on information about the expected sales volumes for each product and the expected unit price of each product. Typically, such a forecast is made for three years in advance. It should be noted that the level of detail in the forecast of sales volumes depends on the length of the period. For the first year, it is advisable to take a month as an interval, for the second year - a quarter, for the third year indicate the total amount of sales for 12 months. The forecast of sales volumes can be presented in the form of a table (Table 2.29).
Income and expense plan
The plan of income and expenses is made up to determine the magnitude and sources of formation and change in the financial result of the organization's activities. The recommended compilation period is three years, with data for the first year reported monthly. An approximate scheme for the formation of a plan for income and expenses is given in Table. 2.30.
The development of a plan of income and expenses allows the organization to determine such key performance indicators as the profitability of output, profitability, the level of production and non-production costs, the amount of expected net profit.
Cash receipts and payments plan
The plan of cash receipts and payments is necessary to determine the liquidity and solvency of the organization. The cash flow is due to the peculiarities of the organization's activities and the mismatch in the timing of receipts and disposals of cash.
It is necessary to distinguish between the movement of financial flows that do not lead to cash expenditures, and the expenditure of pure cash. The first include depreciation and the formation of funds. The latter include proceeds from the sale of goods and services, advances received from customers, funds from the sale of securities, parts of fixed assets, financial investments, loans, loans, etc. The plan of cash receipts and payments is necessary to assess the organization's need for cash for its normal functioning. An approximate form of this section is given in Table. 2.31.
Used in planning cash flows, the term "cash" means the difference between real cash receipts and payments. Its amount changes only when the entity actually receives or makes the payment. At the same time, it should be taken into account that the sale of goods and services does not mean automatic receipt of cash, just as the presentation of invoices does not lead to instant payment. Therefore, cash receipts and payments should be shown taking into account the specified intervals.
Balance of assets and liabilities
The balance of assets and liabilities is recommended to be drawn up at the beginning and at the end of the first year of the project. It is believed that this subsection of the financial plan is less important than the previous ones, however, for specialists of a credit institution, it is necessary to assess the amount of financial investments in assets various types, as well as to determine the liabilities that provide these operations.
The balance sheet consists of two parts: an asset (left side) and a liability (right side), the final total values of which should be equal to each other (Table 2.32). An asset is a list of property that an organization can dispose of. The liability shows to whom and how much she owes.
Plan for Sources and Use of Funds
The plan for sources and uses of funds is designed to show the sources of funds and their use, as well as to change the assets of the organization over a certain period of time. It makes it possible to determine the relationship between possible sources of funds and the organization's working capital. Based on this section, the management of the organization, as well as potential investors, can more accurately assess the financial position, determine the effectiveness of the financial policy and the results of the organization's economic activities. An approximate form of the plan for the sources and use of funds is given in Table. 2.33.
The financial plan should end with a summary paragraph, which provides the required volume and structure of funding sources, an assessment of payback periods and profitability for investors. It should be especially emphasized that in order to increase the objectivity of the financial plan, when developing it, real economic conditions and the financial policy of the state should be taken into account.
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