Current financial planning and budgeting. II. tools, methods and techniques of financial management

7.3. Current financial planning

Current planning is considered as part of a long-term one and is a specification of its goals. It is carried out in the context of the three above-mentioned documents. The current financial plan is drawn up for the year with a quarterly and monthly breakdown. This is due to the fact that seasonal fluctuations in market conditions are leveled out over the year, and the breakdown allows you to track the synchronism of funds flows.

The annual cash flow plan is divided into quarters and reflects all receipts and directions of expenditure of funds.

The first section "Receipts" considers the main sources of cash inflows, in the context of activities.

one). From current activities: proceeds from the sale of products, services and other receipts;

2). From investment activities: proceeds from other sales, income from non-operating transactions, from securities and from participation in the activities of other organizations, accumulation for construction and installation work performed by an economic method, funds received in the form of equity participation in housing construction;

3). From financial activities: an increase in the authorized capital, the issue of new shares, an increase in debt, obtaining loans, issuing bonds.

The second section "Expenses" reflects the outflows of funds in the same main areas.

Production costs, payments to the budget, payments from the consumption fund, increase in own working capital.

Investments in fixed assets and intangible assets, R&D costs, lease payments, long-term financial investments, expenses from other sales, non-sales operations, maintenance of social facilities, others;

Repayment of long-term loans and interest on them, short-term financial investments, payment of dividends, deductions to the reserve fund, etc.

Then the balance of income over expenses and the balance for each section of activity is revealed. Thanks to this form of plan, planning covers the entire cash flow of the enterprise, which makes it possible to analyze and evaluate the receipts and expenditures of funds, and make decisions on financing the deficit. The plan is considered drawn up if it provides sources for covering the deficit. The development of a cash flow plan takes place in stages:

1. the planned amount of depreciation is calculated, because it is part of the cost and precedes the planned profit calculations. The calculation is based on the average annual cost of fixed assets and depreciation rates.

2. based on the standards, a cost estimate is compiled, including the costs of raw materials, materials, direct labor costs, overhead costs / for the economic maintenance of production and management /

In modern conditions, the process of cost planning by responsibility centers is becoming more widespread, which involves the division of an enterprise into structures, the head of which is responsible for the costs of this unit. Planning consists in developing a cost matrix that shows three dimensions of information:

The dimension of the responsibility center where the cost item originated;

The dimension of the production program, for what purpose it arose;

The dimension of the cost element (what type of resource was used).

When summing the costs in the cells by rows, planned data is obtained by responsibility centers, which is important for management. When summarized by columns, planned data on item costs are obtained, which is necessary to determine the price and profitability of the program. The matrix makes it possible to determine the cost of sales of products for the development of annual plans and helps to reduce costs, taking into account the responsibility of specific departments.

3. revenue from the sale of products is determined taking into account the factors of influence in the planning period.

The next document of the annual financial plan is the planned profit and loss statement, which specifies the projected amount of profit received. The final document is a balance sheet reflecting all changes in assets and liabilities as a result of planned activities.

As the measures laid down in the financial plan are implemented, actual data are recorded and financial control is carried out.

The foreign method of developing financial plans is the method of developing a financial plan on a zero basis, which is based on the fact that each of the activities at the beginning of the current year must prove the right to exist by substantiating the future economic efficiency of the funds received. Managers prepare a cost plan for their line of business at a minimum level of production, and then profit from the incremental increase in production for which they are responsible. Top management thus has the information to prioritize and direct the use of resources in order to maximize their effectiveness.

Previous

The system of current planning of 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 for the coming period all 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 at the end of the planned period.
The result of the current financial planning is the development of:
- cash flow plan;
- the plan of the report on profits and losses;
- 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 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:
- Financial strategy of the company;
- 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 (Table 10.2).
Table 10.2
Sales forecast for 2001

Based on the sales forecast data, the required amount of material and labor resources is calculated, 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.

Table 10.3

Profit and loss plan
Name of indicator	Page code	Planned period
		1 sq.	II quarter.	III quarter.
Revenue from product sales (net of VAT and excises)	010
Cost of goods sold	020
Selling expenses	030
Management expenses	040
Profit (loss) from sales (lines 010 - 020 - 030 - 040)	050
Interest receivable	060
Percentage to be paid	070
Income from participation in other organizations	080
Other operating income	090
Other operating expenses	100
Profit (loss) from financial and economic activities (lines 050 + 060 - 070 + 080 + + 090 - 100)	110
Other non-operating income	120
Other non-operating expenses	130
Profit (loss) of the planned period (lines 110 + 120 - 130)	140
income tax	150
Abstract means	160
Undistributed profit (loss) of the planned period (lines 140 - 150 - 160)	170

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. This value is determined 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;
- evaluation of fixed assets and capital investments of the company;
- remuneration of employees of the company.
The planned average annual amount of depreciation is determined on the basis of data on the average annual book value of fixed assets and depreciation rates.
Cost planning by responsibility centers is carried out by developing a cost matrix, which includes:
- dimension of the center of responsibility, 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.
A cash flow plan is developed that 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 production of sold products, the amount of tax payments, the repayment of long-term loans, the payment of interest for using a bank loan, the directions for using net profit

Table 10.4
Cash flow plan for 2001

Sections and balance sheet items	Planned period
	year		1 sq.		II quarter.		III quarter.		IV quarter.
1	2		3		4		5		6
Income
1. From current activities Section 2 total 3. From financial activities 3.1. Increase the authorized capital 3.2. Increasing debt 3.2.1. Obtaining new loans and credits 3.2.2. Bond issue Section 3 Total
1.1. Proceeds from the sale of products, works, services (without VAT, excises and customs duties)
1.2. Other supply:
Section 1 Total
2. From investment activities
2.1. Revenue from other sales excluding VAT
2.2. Income from non-operating operations
2.3. Income from securities
2.4. Income from participation in the activities of other organizations
2.5. Savings for construction and installation work performed by an economic method
2.6. Funds received in the order of equity participation in housing construction
Total receipts
Expenses
1. According to current activities
1.1. Production costs of sold products (excluding depreciation and taxes charged to the cost of production)
1.2. Payments to the budget
1.2.1. Taxes included in the cost of production:
1.2.1.1 Income tax
1.2.2.2. Taxes paid out of profits remaining at the disposal of the firm
1.2.2.3. Taxes attributable to financial result
4. Tax on other income
5. Payments from the consumption fund (material assistance, etc.)
6.Increase in own working capital
Section 1 Total
2. For investment activities
2.1. Investments in fixed assets and intangible assets
2.2..Capital investments for industrial purposes
2.3.Capital investments for non-production purposes
2.4. R&D costs
2.5. Payments for leasing operations
2.6. Long-term financial investments
2.7. Expenses from other sales
2.8. Expenses on non-operating transactions
2.9. Maintenance of social facilities
2.10. other expenses
Section 2 total
3. Financial activities
Repayment of long-term loans
Payment of interest on long-term loans
other expenses
Short-term financial investments
Dividend payment
Contributions to the reserve fund
Section 3 Total
Total expenses
Excess of income over expenses
Excess of expenses over income
Current activity balance
Investment activity balance
Balance on financial activities

The balance plan, as a rule, is built according to the following scheme:
1. Assets:
Current assets
Fixed Assets
2. Liabilities and equity of the firm:
Long term duties.
Short-term liabilities
3. Total liabilities
4. Equity of the firm
5. Total liabilities and equity of the firm

With the help of such a cash flow plan, the company, 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.
The process of current financial planning is carried out at the firm in close connection with the process of planning its operations.

More on the topic Current financial planning:

1. 7.2. Financial planning 7.2.1. The role and objectives of financial planning
2. FINANCIAL PLANNING OF ORGANIZATIONS (ENTERPRISES) Fundamentals of organizing financial planning
3. Lecture No. 29 Topic: Financial planning. Business planning
4. Chapter 11 TYPES AND METHODS OF FINANCIAL PLANNING AND FORECASTING. BUDGETING AS A NEW MANAGEMENT TECHNOLOGY OF PLANNING AT THE ENTERPRISE
5. Analysis of financial activity as a tool for managing financial planning
6. Financial strategy and its role in managing financial planning
7. MONITORING OF CURRENT FINANCIAL ACTIVITIES
8. Choosing a policy for the integrated operational management of current assets and current liabilities
9. The main types of current financial plans developed at the enterprise are:
10. 11.4. Financial forecasting and its role in financial planning
11. Net working capital and current financial needs of the enterprise
12. 44. Analysis of cash flows from the current, investment and financial activities of the organization
13. An in-depth analysis of own working capital - and current financial needs
14. Chapter IV Financial planning and forecasting of financial statements
15. 7. FINANCIAL WORK AND FINANCIAL PLANNING IN THE ENTERPRISE MANAGEMENT SYSTEM

Current financial planning is an integral part of a long-term financial plan and is a specification of its indicators. Current planning is usually carried out for a period of one year, broken down by quarters.

Currently, current financial planning is carried out within the framework of budgeting. "Budgeting is the process of drawing up, adopting the budget of an enterprise and subsequent control over its execution." Also, budgeting, as an element of management, is a "distributed system of coordinated management of the activities of enterprise divisions". Budgeting, as a management technology, includes three components (Appendix 6): "budgeting technology, organization of the budgeting process, use of information technology". Budgeting is based on the system of budgets.

"A budget is a document that shows the centrally established quantitative indicators of an organization's plan for a certain period." The consolidated budget combines two components: operating and financial budgets. The operating budget, depending on the scope of the organization, may contain budgets for sales, production, direct materials, direct labor, general production costs, inventories, selling expenses, administrative expenses, income and expenses. The financial budget includes budgets: investment (capital investments), cash flow budget (cash), balance forecast (balance sheet). The consolidated budget contains the main budgets, the preparation of which is mandatory for every organization using budgeting, regardless of the organizational form and field of activity. Master budgets are consolidated budgets in standard formats. These include the balance sheet forecast, the income and expenditure budget, and the cash flow budget. “When drawing up budgets for structural divisions and services of an enterprise, it is necessary to be guided by the principle of decomposition. It lies in the fact that each budget of a lower level is a detail of the budgets of a higher level.

There is a discussion about the relationship between the concepts of "plan" and "budget". In Western economic literature, especially in English, there is a clear distinction between these concepts. A similar opinion is shared by some domestic authors. However, in domestic practice, the difference between the financial plan and the budget is not significant, one can even say that these concepts are identical, since the structure and content of the above main budgets are identical to the profit and loss plans, cash flow and planned balance, which were drawn up in practice in the recent past.

Budgets can be classified in various ways.

According to the reaction to changes, there are rigid budgets, the figures of which do not change during the year, and flexible budgets, in which planning documents can be periodically adjusted to reflect operational results. According to the degree of continuity, discrete and rolling budgets are distinguished, according to the target orientation - strategic and tactical.

There are two main methods of budgeting. The traditional method - planning is carried out from the achieved level, i.e. based on previous budgets. The zero method is used for a new enterprise or when reengineering the activities of an existing one.

There are two main ways to build a budget:

1. Budgeting "from the bottom up" (build up) begins with the sales budget. Based on the amount of sales and the corresponding costs, financial indicators of the enterprise's activities are obtained, which are then summarized in the overall budget of the organization.

2. Budgeting "top down" (break-down) begins with the definition of goals and objectives by the organization's management, planned indicators, as you move to lower levels of the structure, these indicators are more and more detailed and included in the plans of departments.

Consider the main budgets.

The budget of income and expenses - shows how much income the company has earned during the planned period, what costs have been incurred, reflects the projected profit. Much of the input comes from operating budgets. The budget of income and expenses to simplify the planning process can be developed in a form identical to the forecast profit and loss statement (Appendix 2) or form No. 2 of financial statements. The metrics are displayed broken down by quarter. Additionally, on the last line, you can display retained earnings on a cumulative basis.

Cash flow budget -- covers the totality of cash flows, which is a continuous process of cash flow. Cash flows can be classified:

by the scale of servicing the economic process - by the enterprise as a whole, by type of economic activity, by structural divisions, by economic operations;

in the direction of cash flow - positive, which means cash inflow, and negative - cash outflow in connection with payments. If the difference between the inflow and outflow is positive, then it is called net cash inflow, if, on the contrary, the difference is negative, then it is called net outflow.

by types of economic activity, cash flows are estimated by operating, investment and financial activities. Current activities are activities related to the production of industrial, agricultural products and the provision of services. The activity of the organization is characterized positively if the main cash inflow is associated with operating activities. Investment activities are considered to be activities related to the acquisition and sale of real estate, construction and other capital investments. Investing activities usually generate cash outflows. As a result of financial activity, the value and composition of the organization's own capital and borrowed funds change.

The cash flow budget reflects the expected cash inflows and outflows during the year for the three activities. The budget is considered to be finalized if it provides sources for covering the deficit. Cash flows can also be planned not only for the organization as a whole, but also for individual divisions.

The budgeting process ends with a balance sheet forecast. The balance forecast should also consist of two equal sections - an asset and a liability. The forecast of the balance sheet is based on the balance sheet at the beginning of the period, taking into account the expected changes, which are determined using information contained in the income and expenditure budget and the cash flow budget.

In addition, sometimes a tax budget is developed, which reflects the planned level and timing of the repayment of taxes and other obligatory payments to the budget and other off-budget funds. The tax budget is always calculated only for the organization as a whole.

In connection with the dynamism of the market environment, there is a need to adapt current financial plans to changes that occur during the year. This task is solved by drawing up operational financial plans.

3.3 Operational financial plan

financial business plan

"Operational financial planning - the development of short-term planning targets (operational measures) to provide funds for the envisaged costs" . Drawing up operational financial plans is necessary for the implementation of strategic and tactical decisions and ensuring the stability of the work of all services of the organization. Operational plans are drawn up for a period from several days to several months.

In the process of operational financial planning, the following is carried out:

specifying the established budget target for narrower indicators, structural units (financial responsibility centers) for a short time to ensure its implementation.

control over the execution of the organization's budgets, which includes determining the circle of controllers, a list of benchmarks, collecting information, comparing planned and actual indicators, identifying and analyzing deviations, identifying their causes, making a decision to adjust the budget or tighten control over its execution.

linking financial indicators with the movement of material assets -- the optimal level of inventory is determined.

effective management of current assets - ensuring the liquidity of the organization, minimizing the cost of self-financing, compliance with the production schedule, ensuring sales.

The result of operational financial planning is the compilation of a "payment calendar (cash plan (budget), operational cash budget) - for the coming month (quarter) broken down by decades or days" .

"A payment calendar is a plan for organizing the production and financial activities of an enterprise, in which all sources of cash receipts and expenses for a certain period of time are calendar-related." The payment calendar allows you to ensure the constant solvency and liquidity of the organization.

Drawing up a payment calendar is carried out in several stages:

1. Entering planned payments and receipts from operating activities;

2. Entering data for payment and income from investment activities;

3. Entering planned payments and receipts from financial activities;

4. Formation of an interim balance of cash flow;

5. Determination of the need for additional financing or the possibility of short-term investment;

6. Formation of the final balance of funds.

The payment calendar is compiled on the basis of a real information base on the organization's cash flows, the constituent elements of which are such documentary sources as contracts, invoices, payment orders, product shipment schedules and salary payments, legally established deadlines for payments on financial obligations to the budget, extra-budgetary funds , contractors, etc.

On the basis of incoming primary documents, a calendar of priority payments and receipts is filled out, scheduled by date, usually within a month. This calendar can be filled both manually and automatically using application packages.

The form and methodology for compiling the payment calendar is similar to the cash flow budget (Appendix 7). The payment calendar is compiled on the basis of the calendar of priority payments.

The criterion for the quality of operational financial planning is the timely fulfillment of obligations with a zero final balance of operating activities. Exceeding the expected income means the insufficiency of the organization's own capacity to cover them. In order to prevent a budget deficit, the priority of paying bills must be decided in advance. To do this, all planned payments are divided into groups according to their importance.

In most cases, first-order payments include:

the wages of employees,

tax payments,

Repayment of accounts payable to major suppliers,

Repayment of bank loans

other payments.

The group of payments of the second priority, payments for which are made after priority payments, include:

Year-end bonuses and awards

Payments for other transactions

purchases not for core activities and other payments.

If, as a result of a deficit, there is not enough money to make priority payments, then you can attract borrowed funds in the form of a short-term loan. Also, one of the sources of short-term financing of the organization is the late payment of accounts payable to suppliers. However, there may be consequences in the form of fines, penalties, deterioration of the business reputation of the organization. Shortages can often result from errors in the planning process. In this case, a decision may be made to revise (adjust) the budget.

Cash surplus resulting from an organization's activities can have both a positive and a negative impact. The negative side is expressed in the loss of potential income from the possible short-term investment of free cash, which affects the return on assets and equity of the organization. The positive side is that a large reserve of money is created in case of unforeseen expenses. Therefore, in the process of planning cash flows, it is necessary to determine the optimal amount of cash.

To automate the planning process in modern conditions requires the use of information technology, which includes appropriate software, hardware and telecommunications, trained and organized personnel.

Operational financial planning is necessary in order to control the receipt of actual revenue to the settlement account of the organization and the expenditure of cash financial resources. The operational financial plan complements the current one.

Thus, only with the application of the entire system of the above financial plans, which differ in their terms and objectives, it is possible to effectively manage the organization.

3. Current financial planning

In conditions of uncertainty, high dependence on external factors, frequent changes in legislation, inflationary expectations, many domestic enterprises are faced with the problems of forecasting and planning for the future. Therefore, they focus on current (short-term) planning.

The system of current planning of the financial activity of an enterprise is based on the developed financial strategy and financial policy for certain aspects of the financial activity of an economic entity. This type of financial planning consists in the development of specific types of current financial plans that enable enterprises to determine for the coming period all sources of financing for its development, form the structure of its income and costs, ensure its solvency, and also determine the structure of assets and capital of the enterprise at the end of the planning period . Current financial planning is considered as an integral part of the long-term plan and is a specification of its indicators.

Current financial planning includes the development of:

– financial plan of the main activity;

– financial plan for secondary activities;

– current financial plan;

- calculation of indicators of the current financial plan (taxes; profits; depreciation; sustainable liabilities; increase in the standard of own working capital);

- credit, currency plans, plan (budget) for taxes;

– cash flow plan, which is based on the determination of the liquidity reserve;

- operational financial plans.

All planning documents are based on the same source data and must correspond with each other.

Current financial planning documents are drawn up for a period equal to one year. This is explained by the fact that during the year seasonal fluctuations in market conditions are mainly leveled out. In addition, such a period of time complies with the legal requirements for the reporting period. For the accuracy of the result, the planning period is divided into smaller units of measurement: half a year and a quarter.

The main purpose of constructing these documents is to assess the financial position of the enterprise at the end of the planning period. Current financial plans are developed on the basis of data that characterize:

- financial strategy of the enterprise;

– results of financial analysis for the previous period;

- the planned volume of production and sales of products, as well as other economic indicators of the operating activities of enterprises;

- a system of norms and standards for the costs of individual resources developed at the enterprise;

– the current taxation system;

– the current system of depreciation rates;

- average rates of credit and deposit interest in the financial market.

Consider the content of the main current plans drawn up at the enterprise. The leading financial plan in modern conditions is the current estimated balance of income and expenses. It is compiled for the year with a quarterly breakdown.

The development of a financial plan includes five main stages:

– analysis of financial indicators for the reporting period;

- development of the accounting policy of the enterprise for the planned year;

– drawing up calculations and tables justifying the planned amounts of income and expenses;

- bringing plan targets to departments and services of the enterprise and specific performers;

- Development of reports on the implementation of financial plans.

At the first stage a financial analysis of the proceeds from the sale of products (works, services) and the cost of sales, profits, profitability of production, products, assets and equity for the period preceding the planned one is carried out, the financial stability and liquidity of the enterprise is determined.

At the second stage choose the priorities of the accounting policy of the enterprise in matters of sales proceeds, depreciation, inventory valuation.

At the third stage individual indicators of the financial plan are calculated, a plan is drawn up in a certain form and approved.

At the level of structural divisions of the enterprise, budgets and estimates can also be drawn up, covering the entire cash flow and including: the budget of material costs; depreciation budget; energy consumption budget; payroll budget; tax budget, estimates for the formation and expenditure of funds of funds generated from profits. The consolidated (consolidated) budget of the enterprise is equal to the sum of the cost budgets of structural units, tax and credit budgets.

Fourth stage involves bringing the tasks of the approved annual financial plan to the divisions and services of the enterprise. At the same time, adjustments can be made to the budgets and estimates of the structural divisions of the enterprise (marketing, pricing, planning departments).

Fifth stage provides for the development of reports on the implementation of financial plans (budgets, estimates). Reports serve as an information base for financial planning for the coming period. This work, unfortunately, is not carried out by many enterprises.

The estimated balance of income and expenses is compiled for the year with a quarterly breakdown. It may include three or two sections. In the first case, sections are distinguished in it:

– income and receipts of funds;

- expenses and deductions.

- relationship with the budget (appropriations from the budget and payments to the budget).

Between the sections of the financial plan there is a certain relationship. The total of the first section plus appropriations from the budget should be equal to the total of the second section plus payments to the budget. If the current financial plan includes two sections, then appropriations from the budget are recorded in section 1. “Incomes and receipts of funds”, and payments to the budget - in section 2 “Expenses and deductions of funds” (table 6).

Table 6 - Organization's current financial plan

Index		Index
Section 1. Income and Receipts		Section 2 Expenses and allocations of funds
Total profit: - from the sale of products (works, services); – balance of operating income and expenses (profit); - balance of non-operating operations (profit)		Contributions to reserve funds formed in accordance with the law
Depreciation deductions		Long-term investment in fixed assets
Long-term loans and loans for capital investments
Loans for replenishment of working capital (for a period of more than one year)		Repayment of long-term loans and interest on them
Proceeds from the innovation fund		Investments to increase working capital
Free Financial Assistance		Repayment of loans to replenish working capital
Growth of sustainable liabilities
Other income and receipts
		Dividend payment
		Charitable donations
		Expenses for social support and financial incentives
		Other expenses and deductions
Total income and receipts		Total expenses and deductions
Section 3. Relationship with the Budget
Appropriations from the budget		Payments to the budget
Target financing and budget revenues		income tax
		Local taxes paid from profits
Total Appropriations		Total payments to the budget

In the first sectionthe current financial plan shows the financial results of activities, accrued depreciation, resources attracted on a long-term basis.

In the second section The plan reflects expenses for the expansion and technical re-equipment of production, an increase in working capital, social development, the repayment of long-term bank loans and borrowings, the formation of reserve funds and other expenses at the expense of net profit.

Third section includes payments to the budget (taxes on profits, as well as local taxes paid from profits) and funds received from the budget to finance capital investments, grants, subventions. At the end of the financial plan, in the form of a certificate, taxes and deductions can be indicated that are attributable to the cost price or included in the selling price in excess of the production price.

When developing a current financial plan, it is necessary to ensure that each type of investment is linked to sources of financing.

By its very nature, an annual financial plan is a hard quantitative plan. The annual financial plan allows you to anticipate the amount of net income and the possibility of investment financing. This is its significance for enterprises, since it is the annual plan that involves the justification of production costs and profits.

The annual financial plan does not reflect the full amount of financial resources. For this reason, one cannot confine oneself to its compilation; other financial plans are also needed.

An important document for managing the current cash flow of an enterprise is a plan for the movement of funds in bank accounts and cash (balance of payments).

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 annual cash flow plan is broken down quarterly and monthly, since during the year the need for cash can change significantly and in any quarter (month) there may be a lack of financial resources. In addition, the breakdown of the annual plan into short periods of time allows you to track the synchronism of cash flows and eliminate cash gaps.

The cash flow plan is usually drawn up for the enterprise as a whole. In its content, it is close to the balance of cash expenditures and receipts as part of a business plan and the payment calendar as part of operational financial plans.

The plan includes two main parts: receipts and expenditures. The income section reflects proceeds from the sale of products, from the sale of fixed assets and intangible assets, income from non-operating and operating and other income that the company expects to receive during the year.

The expenditure part reflects the costs of production of products sold, the amount of tax payments, the repayment of long-term loans, the payment of interest for using a bank loan, and the use of net profit. This form of plan allows the company to check the reality of the sources of funds and justify the costs, the synchronism of their occurrence, 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 final values ​​of the income and expenditure parts of the plan.

The cash flow plan can be drawn up in two ways: direct and indirect.

The direct method is based on the calculation of the inflow (proceeds from the sale of products and other receipts; income from investment and financial activities) and outflow (payment of supplier invoices, return of borrowed funds) of funds.

With the direct method, cash flow is defined as the difference between all the inflows of funds in the enterprise for three types of activities and their outflows (table 7).

It is defined as their balance at the beginning, taking into account their flow for a given period.

Table 7 - Statement of cash flows prepared by the direct method

	Index
	Cash received, total Including: proceeds from the sale of products, works, services income from the sale of fixed assets and other property advances received from buyers budget appropriations special-purpose financing gratuitous receipts receipt of credits and loans dividends, interest on financial investments other supply
	Funds sent, total Including on: payment for purchased goods, works, services wages payment of taxes and fees contributions for social needs issuance of advances payment for equity participation in construction financial investments payment of dividends, interest repayment of credits and loans other payments
	Cash balance at the end of the period

Thus, balances are summed up for three types of enterprise activities:

– main (current) activity;

– investment activity;

- financial activities.

After that, the final balance sheet cash flow is calculated. The starting element of the direct method is revenue. Let us consider in more detail the cash flow for each type of activity of the enterprise.

1. Cash flow in connection with the main (current) activity reflects the inflow and outflow of these funds in operations that give net income from the main activity. The most typical sources of cash receipts in this section are:

- proceeds from the sale of products (works, services);

– growth of sustainable liabilities;

- budget allocations and others.

Typical areas of expenditure of funds related to this section are:

- wages of employees;

- payment of taxes;

– payment of interest on loans and borrowings;

- purchase of raw materials, materials that will be used in the production process and others.

The difference between the sum of the above cash receipts and their expenses is called the net inflow (outflow) of cash in connection with the main (current) activities of the enterprise.

2. Cash flow in connection with investment activities is due to the acquisition, construction (outflow) and sale (inflow) of fixed assets and other long-term assets. The funds come from:

- the planned write-off (by sale) of buildings, equipment, income that will be received on securities owned by the enterprise;

- profits from equity participation in the activities of other enterprises;

- savings for construction and material work performed by an economic method.

Funds are spent on:

– acquisition and construction of buildings and equipment;

– investments in shares and long-term liabilities of other enterprises;

– acquisition of intangible assets used in core activities;

– R&D and others.

The difference between the receipt and expenditure of funds within this section is called the net inflow (outflow) of funds in connection with investing activities.

3. Cash flow from financing activities reflects the attraction of long-term capital in the form of cash to finance the activities of enterprises (inflow) and payments to holders of its securities (outflow).

Financial activities should contribute to the growth of funds at the disposal of the enterprise for financial support of the main and investment activities.

Table 8 - Composition of cash flows by types of activity

tributaries	Outflows
Primary activity
Revenue from product sales	Payments to suppliers
Receipt of accounts receivable	Payment of wages
Proceeds from the sale of tangible assets	Payments to the state budget and off-budget funds
Buyers advances	Interest payments on a loan
	Consumption fund payments
	Repayment of accounts payable
Investment activities
Sale of fixed assets, intangible assets, construction in progress	Capital investments for the development of production
Receipt of funds from the sale of long-term financial investments	Long-term financial investments
Dividends, percentage of long-term financial investments
Financial activities
Short-term credits and loans	Repayment of short-term loans and borrowings
Long-term credits and loans	Repayment of long-term loans and borrowings
Proceeds from the issue of shares	Dividend payment
Special-purpose financing	Payment of bills

Enterprises solve financing problems through a wide range of instruments - from the placement of securities (bonds, preferred and ordinary shares) to bank loans and leasing, which is reflected in the sources of income in this section.

Cash outflows from financing activities represent payments to shareholders in the form of dividends, as well as in the form of payment for shares repurchased by them and to creditors of enterprises in the form of principal payments. of this type of cash is called the net inflow (outflow) of cash in connection with financing activities.

It should be borne in mind that VAT and excises are not reflected in the cash flow plan, since they are charged before the formation of profits.

With the help of this form of plan, an enterprise can check the reality of the sources of funds and the validity of expenses, determine the possible amount of need for borrowed funds.

The indirect method is based on a consistent adjustment of net income due to changes in the assets of the enterprise. The initial element of the indirect method is profit.

With the indirect method, the basis for calculation is retained earnings, depreciation, as well as changes in the assets and liabilities of the enterprise (table 9).

Table 9 - Statement of cash flows prepared by the indirect method

	Index
	Cash balance at the beginning of the period
	Current activity:
	Financial results	net profit
	Adjustments: depreciation of fixed assets and intangible assets accounts receivable remaining inventory Future expenses accounts payable own reserves	Admission decline decline decline decline	decline
	Net cash flow from operating activities	difference between inflow and outflow
	Investment activities: fixed assets intangible assets long-term financial assets interest and dividends on long-term financial assets	implementation implementation implementation receiving	acquisition acquisition acquisition
	Net cash flow from investing activities	difference between inflow and outflow
	Financial activities: short-term credits and loans long-term credits and loans short-term financial investments equity (shares) interest, dividends	receiving receiving implementation	redemption redemption acquisition
	Net cash flow from financing activities	difference between inflow and outflow
	Cash balance at the end of the period

When calculating the amount of cash flows using the indirect method, the following scheme is used:

I. Cash flows from operating activities.

1. Net profit;

2. Depreciation deductions (+);

3. Increase (-) or decrease (+) in receivables;

4. Increase (-) or decrease (+) of inventories and other current assets;

5. Increase (-) or decrease (+) in accounts payable and other current liabilities (excluding bank loans).

Total: balance of current activities.

II. Cash flows from investment activities.

1. Increase (-) fixed assets and capital investments in progress;

2. Increase (-) long-term financial investments;

3. Profit (+) from the sale of long-term assets.

Total: balance on investment activity.

III. Cash flows from financing activities.

1. Increase (+) own capital by issuing own shares;

2. Decrease (-) in equity due to the payment of dividends and share repurchases;

3. Increase (+) or decrease (-) of credits, loans, bonds, promissory notes.

Total: balance of financial activities.

The total change in cash should be equal to the increase (decrease) in the cash balance between two planning periods.

The advantage of the direct method is the direct calculation and coverage of the cash flow. However, calculations with the indirect method more fully show the ratio of cash flow and economic activity of the enterprise as a whole; reveal the relationship between the profit and loss plan with the cash flow plan.

The currency plan is drawn up for a year with a quarterly breakdown and reflects the movement of funds on the bank's current currency account. The basis for its compilation is the estimated amount of foreign exchange earnings from the sale of goods (works, services) for export in accordance with the concluded contract, as well as the planned foreign exchange earnings from sales on the domestic market, other foreign exchange earnings and estimated costs in foreign currency. When calculating the receipts of foreign exchange earnings from the export of goods, the obligatory sale of part of it for rubles is taken into account.

The credit plan (budget) is drawn up for a quarter, half a year, a year. It reflects the receipt and repayment of bank loans, both short-term and long-term, received for production, investment, seasonal needs and other purposes (table 10).

Table 10 - Credit plan of the enterprise for the quarter

Indicators
Loan balance at the beginning of the quarter Including:
on short term loans
on long-term loans
Obtaining loans (by types of loans and banks)
short-term
long-term
Loan repayment plan Including:
short-term
long-term
Loan balance at the end of the quarter Including:
short-term
long-term

As the implementation of the measures laid down in the current financial plan, the results of the enterprise's activities are recorded. At the same time, the plan is the result of planning, while the report on actual values ​​shows the real situation of the enterprise, which is necessary for its management to make decisions.

As a result of comparing actual indicators with planned ones, financial control is carried out. When conducting it, special attention should be paid to the following points:

- implementation of the articles of the current financial plan to identify deviations and causes that signal an improvement or deterioration in the financial condition of the enterprise and the need for its management to respond to this;

- determining the growth rate of income and expenses for the previous year to identify trends in the movement of financial resources;

- the availability of material and financial resources, the state of production assets at the beginning of the next planning year to justify their initial level.

Basic terms and concepts: current financial plan, payment calendar, balance of income and expenses, income from product sales, income from equity participation, other income and expenses, break-even limit, operating expenses, profit (loss) from operating and ordinary activities, net income from operating activities, net profit.

3.1. The current financial plan, as a program for managing the finances of enterprises.

3.3. Methodological bases for the implementation and formation of the financial plan.

3.3.1. Analysis of the financial plan at the enterprise

3.3.2. Formation of a draft financial plan for the next year

3.3.3. The main directions for improving the methodological foundations of financial planning at the enterprise

After studying the material, you will know:

Features of current financial planning at the enterprise;

Types of current plans and their purpose;

Methodological approaches to the formation of a financial plan.

And you will be able to:

Choose the form of the current financial plan, taking into account the specifics of the enterprise;

Form a financial plan;

Evaluate the effectiveness of financial planning in the enterprise;

Reserves for increasing the financial capabilities of the enterprise were identified.

Current financial plan as an enterprise financial management program

In ensuring the success of the enterprise, a significant role is played by the current financial plan (budget). Lack of both financial

plan and the correct organization of financial planning can be one of the main causes of losses for the enterprise. Compared to long-term financial planning, current planning relies on more accurate calculation methods. Annual financial plans more differentiated and detailed. They should be linked to specific actions and measures. The current financial plan defines specific indicators of the financial and economic activities of the enterprise, the sequence and timing of operations for the planned year.

It is possible to ensure effective financial management through reasonable planning of all cash flows associated with the circulation of production assets, the formation and use of cash income and equity of the enterprise.

In the developed financial plans of enterprises, management decisions are embodied which are preceded by:

Analysis of enterprise development trends;

Forecast of various options for the development of the enterprise;

Assessment of the consequences of decisions made.

When developing a financial plan, the results of the analysis of the financial and economic activities of the enterprise over the past 3-5 years, the forecast of the volume of operating and investment activities, the current legislation on pricing, taxation, national accounting regulations (standards) are taken into account. Balancing the plan for resources is carried out on an economically justified basis, taking into account the financial condition of the enterprise at the beginning of the planning period and the possibilities of ensuring financial stability during the planning period.

An economically sound financial plan is an enterprise capital management program. It includes the following components (Fig. 3.1).

In the economic justification of financial plan indicators, both the competence of financial managers and the degree of validity of plans for the production and sale of products (goods, works, services), the value of projected production assets are of great importance, since these indicators are the initial basis for developing a financial plan, determining the amount of financial resources by sources of formation and directions of use necessary to ensure its implementation of the plan.

The task of the enterprise is to ensure the fulfillment of predicted financial indicators, the effective use of equity and borrowed capital, ensuring constant monitoring of solvency,

creditworthiness and liquidity of debt obligations, financial stability and competitiveness of the enterprise.

Rice. 3.1. Components of a financial plan

The use of financial management tools in the development of a financial plan allows you to take into account external and internal factors influencing quality indicators, determine their optimal value and the critical line of financial risks.

By appointment in the practice of market management, the following are distinguished types of current plans :

- Functional plans, with the help of which they implement management decisions in various functional areas;

- At the same time, plans which are developed for the purpose of implementing any project (program), containing tasks for the implementation, implementation of one-time actions;

- stable plans, which standardize the decision about recurring;

- Standardized plans in accordance with the instructions for their formation. These are action plans that include a series of steps that must be followed in the course of performing individual tasks;

Financial planning is aimed at the efficient use of financial resources and the identification of internal reserves for improvement. To this end, the company:

Rational use of production capacity;

Introduce new production technologies and improve the quality of products;

Comply with the norms for the cost of material, labor and financial resources, projected labor productivity and optimization of financial investments;

Ensure the profitability of operating, investment, financial activities.

So, an economically sound financial plan is a program for managing the formation, placement and use of the total and equity capital of the enterprise.

The basis for the development of the current (short-term) financial plan is the strategic plan and production program. By developing a financial plan - a document that represents a way to achieve the financial goals of the enterprise, provide a link between its income and expenses. In the process of financial planning in the implementation of the management function, the enterprise: a) identifies the financial goals and benchmarks of the enterprise; b) establishes the degree of compliance of these goals with the current financial condition of the enterprise; c) determines the sequence of actions aimed at achieving the set goals. The latter will be different for the long term and short term, as will their purpose. If the purpose of the short-term financial plan is to ensure constant solvency, then the main purpose of the long-term plan is to determine the pace of expansion of the enterprise that is acceptable from the standpoint of financial stability.

The current financial plan will play a proper managerial role only if it is closely interconnected with the overall strategy of the enterprise, its business plans, production, marketing, scientific, technical and other plans. The absence of such a relationship will manifest itself in the fact that:

1) financial forecasts without practical value until adequate production and marketing decisions are developed.

2) plans will not be real, with unattainable marketing goals.

3) financial plans may be unapproved if the achievement of financial indicators is unfavorable for the enterprise in the long term.

4) financial planning will not become effective until the employees of the enterprise (from an ordinary employee to the head) are not actively involved in financial management.

To ensure effective financial management in the planning process, it is necessary to:

Assess the investment and financial capabilities of the enterprise;

Anticipate the consequences of current decisions to avoid unforeseen problems and understand the relationship between current and future decisions;

To substantiate the chosen option of the financial plan and possible financial solutions;

Evaluate the results achieved by the enterprise, comparing them with the goals set in the financial plan.

The effectiveness of financial planning is achieved under the following three conditions: 1. forecasting, 2. choosing the best option for the financial plan, and 3. monitoring its implementation (Fig. 3.2).

Rice. 3.2. Three conditions for the effectiveness of financial planning

The implementation of these conditions ensures the necessary continuity in financial planning. The process of financial planning requires adherence to a number of specific principles. However, the observance of the basic principles is mandatory.

These in current financial planning include: compliance with the deadline, ensuring a constant need for working capital and ensuring the optimal cash balance (Fig. 3.3).

Rice. 3.3. Principles of financial planning

Based on the implementation of these principles, decisions are made to ensure the effective movement of financial resources. This can be achieved in the implementation of financial planning in the relationship: "minulet-television-future" (Fig. 3.4).

Important for the financial planning process is the use of the results situational analysis. The latter is reduced to the definition of "what will happen if certain events occur?" Based on the analysis, proposals are developed, alternative plans that take into account the following:

How much does the company need to produce and sell products?

What products to continue and what to suspend?

Independently produce or buy components?

Is it advisable to change the technology and organization of production?

Close or re-profil the structural divisions of the enterprise?

What will happen in the company if the volume of sales decreases?

How will the financial results be affected by price cuts in the sale of products?

What will be the result of changing one of the variables or constants?

Rice. 3.4. Financial planning in the relationship of periods "past - present - future"

A deep comprehensive analysis of financial and statistical reporting materials, the use of relevant information materials at the regional and national levels at the first three stages makes it possible to provide a reliable analytical base for the development of long-term, current and operational financial plans.

Important for financial planning is the identification of sources funding especially the company's need for additional capital. The latter can be formed at the expense of both long-term and short-term sources of financing. When planning funding sources, there are two options: long-term financial resources do not cover capital requirements or they exceed the need(Fig. 3.5).

Rice. 3.5. Principles of financial planning

According to the first option, when long-term financial resources do not cover the entire need of the enterprise for capital, the solution to the problem can be short-term financing, and otherwise, the enterprise should allocate funds for investments.

The amount of long-term sources of financing attracted by the enterprise in the event of an additional need for capital determines in what capacity it acts in the short term - a borrower or a lender.

The choice of the optimal financial plan is achieved by developing such options: pessimistic, most probable and optimistic.

The development of options for financial plans allows you to establish:

The amount of funds at the disposal of the enterprise, and their optimal balance;

Reasonable amount of financial resources and the possibility of attracting them by the enterprise;

Rational ratio of sources of financial support;

Sufficiency of financial resources for the implementation of the tasks;

The amount of funds that must be transferred in the form of taxes to the budget and the social mandatory contribution to the pension fund and payments to banks and creditors;

The optimal variant of the profit distribution of the enterprise;

Methods for balancing income and expenses.

When developing a financial plan, consider:

a) the restrictions that the enterprise will face in the course of its activities (requirements for environmental protection; market requirements for the volume of sales of products, assortment and quality, technical, technological and personnel capabilities of this enterprise);

b) the disciplinary role of the financial plan in the activities of the financial manager;

c) a certain conditionality of financial plans due to the uncertainty of changes in the economic situation on a global and local scale.

The form of the financial plan for private enterprises, unlike state ones, is not regulated. Therefore, state-owned enterprises develop financial plans that are different in form and content. However, it is important for financial planning to control the implementation of the plan.

The following economic indicators of the enterprise should be subject to special control:

Profitability of the enterprise;

Allocation of funds for its development;

Growth of own capital of the entrepreneur;

The volume of taxes and obligatory payments payable;

Repayment of debts of past periods to the budget.

Along with current financial plans in financial management, enterprises use operational financial plans (budgets).

In the financial plan, a balance linking the income and expenses of the current year should be achieved, which follows from the forecasted operating, investment and financial activities, and the receipt of net profit in the amount of at least the amount provided for the payment of dividends to shareholders and economic and social development of the enterprise.

The form and level of detail of the current financial plan may vary depending on the types and volumes of activities, the level of reliability of the calculations made, and ensuring the necessary level of transparency in the activities of enterprises.

According to the duration of the current financial plans are divided into annual, quarterly and monthly. The latter are used to control and promptly respond to the process of fulfilling the annual financial plan.

For enterprises of various sizes, more or less financial plans are developed.

For a medium-sized enterprise, it is mandatory to draw up such major operating financial plans(budgets): balance sheet forecast, income and expense budget (or income statement forecast), cash flow budget.

Since it is impossible to accurately predict the future, the planning process must be continuous. At each stage of financial planning, it is necessary to reflect the information received. The constant change in external conditions requires continuous review of financial plans.

So, when organizing flexible operational financial planning with a planning period of one year, plans are approved in December for a year - from January to December, and a month later - a year from February to January of the next calendar year, and in February a year - from March to February of the next calendar year, etc. A similar organization of financial planning has been used by American companies since the 50-60s pp. 20th century The use of modern information technology provided in the late 70's and early 80's pp. the rapid spread of continuous planning in developed countries in different areas and at different levels of government.