FINANCIAL PLANNING AND CONTROL

Financial Planning and Control

Financial Planning and Control

Article One: McLean T. “Cost engineering and costing in Hawthorn Leslie Shipbuilders, 1886 - 1915”.

Objective of the study

In the study of financial planning, the experts should note its close connection with the system of financial control in the enterprise. Despite the fact that planning and control, are two different control functions, the existence of them in the economic activity of enterprises separates them from each other because they are complementary and interdependent. The evaluation of the goals set out in the framework of financial planning, would not be possible without financial control. That is why solving the problem of improving the system of financial planning at the enterprise, people cannot set aside and a system of financial control. By studying the system of financial control, it is also necessary as is the case with the system of financial planning; consider the elements of the system. The system of financial control should be viewed as a system of internal financial controls, taking into account the fact that the object of improving in this paper is the system of financial planning, closed within the enterprise.

Key Concepts

To build an effective system of financial planning at the enterprise is important to determine not only functions but also the methods of planning. From many people point of view, planning methods as well as planning and organization of the company, presented in the financial planning has an element that has a personnel involved in planning related to the outside of the financial planning and directly related to the organization of this process in the enterprise. It should be clear about what and how to organize. To the inner side of financial planning tools include the study of planning decisions. These tools help answer the question of how to plan and form the core of the planning system. They may have varying degrees of formalization. Some of them brought to the level of economic-mathematical models and have the software, while others are characterized by a weak description of both the method and algorithm of its application (Berger, 2008, 87).

The next element of financial planning to be addressed has the planning acts. The planning process is the technology that represents a sequence of steps performed in the preparation of the plan. Thus, the diagnosis of a given element of the company must determine whether the observed sequence of process steps, and if not, it is necessary to identify the causes of deviations and undertake appropriate actions to implement the scheduling algorithm in the enterprise. In the first stage, there are justified goals, defining the functions and methods of planning. They define the criteria for making planning decisions and monitor their implementation. At the stage of problem analysis, it is determined by the initial situation at the time of the plan and forming the final script. Further, among the possible solutions proposed scenario is chosen the best, followed by planned design solutions and begins its ...