Institutional and Managerial Principles of Financial Planning at the Enterprise

Economic Annals-ХХI: Volume 148, Issue 1-2(2), Pages: 35-38

Citation information:
Gnyp, N. (2015). Institutional and Managerial Principles of Financial Planning at the Enterprise. Economic Annals-XXI, 1-2(2), 35-38. https://ea21journal.world/index.php/ea-v148-09/

Nataliia Gnyp
PhD (Economics),
Senior Lecturer,
Kharkiv Institute of Banking
55 Peremohy Ave, Kharkiv, 61174, Ukraine
natalija-gnip@rambler.ru

Institutional and Managerial Principles of Financial Planning at the Enterprise

Abstract. Introduction. Solution of the financial capacity issue, financial losses minimizing and economic growth strategy implementation starts with the entity’s budgeting and budgetary control processes and ends at the stage of financial control in order to ensure enterprise’s financial management effective dynamics.  Enterprise’s budget planning guidelines development is an urgent issue nowadays. Budget planning process analysis shows that some companies, such as PJSC «Kharkiv Machinery Plant «Svitlo Shakhtaria», State Research and Production Enterprise «Kommunar», State Enterprise «Kharkiv machine-building plant «FED», successfully use budgeting. Purpose of the article is to develop organizational and management support for enterprise’s financial planning aimed at preserving and strengthening its financial capacity. Methods. Usage of systemic and comprehensive approach reveals the place and importance of planning in the enterprise’s financial management system, as well as comprehensive planning system and risks neutralization representation. Results. Organizational and management services for the enterprise’s financial planning aimed at preserving and strengthening its financial capacity, can be improved by developing the enterprise’s budget planning regulations which define a mechanism for effective interaction of units, set budgeting timeline for necessary documentation and procedure for the budget amending, divide responsibilities for the regulated procedures performance. Methodical approach to budgeting allows enterprise planning its future activities properly. Conclusion. Solution of the budgeting organizational task will help apply effectively the methodology and algorithm of budget planning which leads to higher accuracy and ability to promptly new options finding for the future operation of the enterprise in order to choose the most optimal one.

Keywords: Budget; Budgeting; Business Objective; Business Projection; Financial Planning; Financial Capacity

JEL Classification: G32; О20; Р12

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Received 30.11.2014