In addition to planning economic activities,the enterprise needs financial planning (the budget of incomes and expenses of the enterprise). It is with his help that the company's management can provide control over the formation, as well as the rational use of resources. In addition, financial planning allows creating conditions for increasing the efficiency of using the existing potential of the enterprise and, in general, improving its financial condition.
To ensure flexibility and speed of adoptionmanagement decisions it is customary to make a plan of incomes and expenditures on a quarterly basis, while inflation must be taken into account. When developing a financial plan, the following indicators are determined:
- costs for the sale of finished products;
- VOR;
- depreciation;
- investment size;
- sources of financing;
- the enterprise's need for current assets;
- sources of covering the need for working capital;
- and others.
The budget is compiled on the basis of calculationsmentioned above. Judging by the name, it reflects, on the one hand, the projected revenues and incomes from the activities of the enterprise, and on the other - costs and allotments. Ultimately, the financial plan is the information base of budget control. That is, for the timely implementation of the analysis and the identification of a variety of deviations of actual indicators from forecasted ones. If inconsistencies are detected, appropriate adjustments are made. The plan of expenses and incomes can be not only general. Often, local budgets are compiled in parallel, which take into account forecasts related to the functional or operational budget.
There are several strategies to draw up a plan for the costs and revenues of the enterprise:
- Down up.The creation of a plan for expenditures and incomes starts here from the lowest levels in the hierarchical structure of the enterprise. Further, the indicators are transferred to the sales service and, after agreeing with the forecasted volumes of revenue, are transferred to the highest management unit. The administration of the enterprise compares planned expenses and incomes, and then determines what result is to be achieved in the period under consideration.
The overall budget reflects the relationshipenterprises with other market participants (financial and credit institutions, insurers, state and municipal enterprises and others). In addition, the expenditure and income plan should take into account the size of inflation, changes in the monetary policy of the state and other factors of macroeconomics.
