A financial plan is necessary to assess the performance of the enterprise at each stage. It identifies weaknesses, allows you to make a forecast, and optimize financial flows. Drawn up for a period of 1 to 5 years.
The main task of any planning is to find and select the most profitable and sustainable option for the development of the company. A financial plan is a complex document that prescribes the procedure for the development and functioning of a company in value terms. Special attention is paid to forecasting the effectiveness and results of all areas of the enterprise. Thanks to the form, the interconnection of financial indicators and their application for the growth of working capital, the creation of cash funds, and investment is ensured.
Financial plan and business plan of the enterprise
The document is the main part of the company's business plan. When developing it, the cash flows necessary for the full operation of the company are taken into account. It is important not only for potential investors, but also can be used for internal use. Therefore, maximum attention should be paid to its compilation.
Foreign firms use formalized requirements that include a certain set of planning and reporting documents. The Russian system differs from those used in most countries. But thanks to the opportunity to use the experience of foreign countries, mutual understanding in the field of entrepreneurship is simplified. Therefore, in the modern financial plan of the enterprise, the following are displayed:
- income and cash receipts;
- expenses and deductions;
- credit prospects;
- budgetary relations.
Types of plans
There are several variations of this document. Strategic, for example, allows you to identify the main directions of business development and long-term structure. It allows you to determine the main financial indicators, proportions, investments. They show the structure of financial resources required to maintain the enterprise.
The current view is developed on the basis of a strategic one, but using the method of its detailing. Within its framework, investments are coordinated with the source of financing, the effectiveness of each cash flow is studied, and a financial assessment of the ways of making a profit is carried out.
An operational financial plan implies a short-term tactical plan that is associated with the achievement of the goals of firms. They are part of the annual or quarterly reporting. The operational view is a tool for managing cash flows. It includes:
- preparation and execution of a payment calendar;
- calculation of the need for a short-term loan of funds;
- drawing up a cash application.
Wikipedia says that in addition to the above three popular types, there is also pessimistic, optimistic and most probable.
Drafting
The financial plan is drawn up for a period of one to 5 years. When compiling it, accounting and financial statements, information on the implementation of financial plans in other periods, contracts, forecast calculations and economic standards are used as sources. When drafting the document, it is necessary to take into account other factors, including analytical materials, market trends, and the general political and economic environment.
The best solution would be to draw up a document consisting of three sections:
- calculation of the need for fin. means and identification of sources of income;
- planned calculation of profit and its distribution;
- balance of income and expenses.
Taking into account international experience, it is also important to include a section with income forecasts, tables with income and expenses, a free balance sheet of assets and liabilities, and a break-even schedule. The latter allows you to visually see the processes taking place, showing the effect on profit of production volumes, sales prices and production costs.
Thus, the financial plan allows you to get complete information about the work of the company. Thanks to him, weaknesses in the organization are easily identified, it becomes possible to find out in which areas unsatisfactory results are observed.
