Importance of financial planning

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Importance of financial planning

Planning a new job allows you to determine the cost and revenue parts of the project, form a cash flow plan and detect areas of budget insufficiency, forecast the number of personnel and the volume of necessary activities, a business model is being formed that will allow you to take into account other scales, prices, volumes, deadlines in the future, which will allow you to assess them and quickly change the program of events.

Planning the work of a company or division allows you to improve the mechanisms of work, effectively expand the boundaries of activity, discover reserves, efficiently and economically spend the resources involved, economically and legally assess risks.

A business plan is a program document for conducting financial and economic activities. We use very effective mathematical tools for analyzing and forecasting economic and commercial activities, evaluating ways to implement a project under given conditions. It is no secret that commercial goals require professional planning and must be secured and protected legally and economically. We form optimal ways to achieve goals, cover all types of accounting, technical, legal, economic and financial information.

Here is the opinion of the Company based on the ongoing research. ​During the work, we came to the conclusion that many once “prosperous” industrial and manufacturing enterprises in the perestroika (1985-1991) and post-perestroika time lost their stability after the complete rejection of the planned economy by the political course, including planning as a type of activity. The USSR’s planning experience was crossed out, not reformatted.

Planning under the USSR was based on receiving a regular state order and its execution. In fact, the payback was not always, but the order was.

The decision to abandon planning at enterprises and in the country under the influence of the slogan of abandoning the planned economy was made. The industry began to massively reduce planning departments at enterprises as “bloated”, “inefficient”, “expensive”, “outdated”. The peak of these events occurred in the 90s of the last century.

Russia spontaneously rushed to the market and was included in the world commodity turnover. Enterprises did not understand well how to work in the new conditions, and we still see this misunderstanding. The global and new domestic market required enterprises to demonstrate their business plans, but there are practically no planning specialists and economists with experience  working in production in the domestic market of Russia.

At the same time, it is impossible to have a clean market without planning tools. The market is an external packaging that allows you to integrate and work in foreign markets and this cannot happen without plans. The domestic market also suffers from the lack of planning, not all enterprises can assess their potential and work stably. We support and constantly develop the service of planning and developing business plans for our clients. Any initiatives to strengthen and develop activities are well solved by the development of business plans.

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