Financial Terms: Financial Planning

Enterprises in the form of currency are expected to estimate the acquisition and utilization of funds in the planning period, and the written documents of operating revenues and expenditures and financial results. It is enterprise An important part of the business plan is the main basis for financial management and financial supervision. The financial plan is compiled on the basis of production, sale, material supply, labor wages, equipment maintenance, technical organization and so on. Its purpose is to establish the financial management goal, implement the economic responsibility system within the enterprise, make production and business activities according to plan coordination, excavate increase production and save potential, and improve economic efficiency.

Preparation of financial planning procedures

1, put forward by a company's top management authority according to financial decisions. Management Objectives, and planning indicators should be issued to all levels and departments.

2, departments at all levels and departments should compile budgets for their departments within the scope of planning indicators.

3, the finance department or the budget committee shall examine the budget draft of each department. coordinate To compile and compile the general budget and submit the approval to the directors and the directors of the enterprise.

4, the approved budget will be issued at all levels and departments.

Financial planning method

1, a fixed plan, that is, a financial plan prepared according to a fixed level of operation.

2. Flexible plan, that is, a scalable financial plan according to certain operating levels during the planning period;

3. Rolling plan, that is, the financial plan that will keep the plan period for a certain length in a continuous way.

4, zero base plan, that is, the index is not based on the original basis in the planning period, but is based on zero starting point, considering the level of the various indicators should be achieved and the financial plan.

Contents of financial plan

In China, the main contents of financial planning for state enterprises include: income, expenditure and profit and loss in production and operation activities; product cost (unit cost of various major products, reduction and reduction of comparable products' cost over the previous year) and cost budgets; distribution of net income and compensation for losses; and the relationship between the payment and appropriation of enterprises and national budgets; the sources and occupancy and turnover of the circulating capital; the collection and use of special funds, and the arrangement and utilization of the retained profits of enterprises according to law. Enterprise financial planning is an important basis for compiling national economic plan and national budget.

The principle of financial planning is:

1, the main financial revenue and expenditure activities of enterprises should reflect the guidance of the state plan to enterprises and comply with the provisions of national policies and decrees.

2, all indicators should be able to mobilize workers to increase production and economize, improve the enthusiasm of management and management, and also have practical measures to ensure their realization.

3, the indicators in the financial plan should be compatible with all the production and operation activities of the enterprise, and should be coordinated with other plans.

4, we should draw up financial plans according to the annual, quarterly and monthly plans, with the monthly guarantee season and the quarterly guarantee year.

The financial planning of enterprises in western countries also includes long-term and short-term investment plans, as well as plans to raise capital and dividends, and to pay interest on corporate bonds.