3. Operative intrafirm financial planning

Operative intrafirm planning represents working out of operative financial schemes: the credit plan, the cash plan, a payment calendar and others.

The credit plan is the plan of receipts of loan proceeds and their return to the terms scheduled by the agreement.

The cash plan - the plan of a turn-over of the cash money resources reflecting receipts and payments of cash through cash desk of the enterprise. It is constituted for a quarter. It consists of four sections: receipt of cash; the cost of cash; account of payments of wages; a calendar of salary payment and the payments equal to it.

The payment calendar is a plan of the rational organisation of operative financing activities of the company. In a calendar all sources of receipts of money resources (a gain from realisation, credits and loans, miscellaneous incomes) with costs for realisation of financially-commercial activity are interconnected. It covers movement of all money resources of the enterprise. It is used for the control over solvency and credit status. It is constituted in all respects receipts and the costs passing through settlement and loan bank accounts. It is developed by clarification and a concrete definition of planned targets for a quarter and their breakdowns on months, weeks and so on.

Chapter 3. The contents of the financial plan.

By working out of the financial plan the fiscal accounting data for the previous period is used. It is necessary for the analysis of a financial condition of the company which allows to deliver "diagnosis", to reveal undesirable deviations, to consider results of analytical generalization in the plan. The problem is facilitated by identity of the contents of the forms (tables) used in planning, and fiscal accounting forms — the balance sheet and look-ahead, the income statement and pro-forma income statement, a cash-flow statement. The last form of the reporting is provided as a part of the fiscal accounting not in all countries, but the western companies all the same make the cash flow statement which is used for needs of an internal finance administration.

Other important circumstance distinguishing modern practice of financial planning consists in identity of indicators of the annual plan and operative (made on the small period). To tell more correctly, the annual plan is broken into short spaces of time that allows to trace synchronism of receipts and costs and to eliminate cash ruptures. In domestic practice before this problem was decided by means of the payment calendar made for 5, 10 days, month depending on size of a one-day monetary turn-over. The payment calendar, undoubtedly, is a useful operating plan, it can and be made now so that to cover movement of means from all accounts of the enterprise, but its sections and indicators do not correspond to the contents of the annual financial plan (balance of income and expenditure) which form was used before in financial planning. In a complete kind the financial plan usually consists of three documents — the pro-forma income statement, the planned (look-ahead) balance sheet, the plan of cash flows (or the planned report on movement of means). Last name still a cash budget. It represents actually the plan of financing made for year with quarterly breakdown, and reflects cash flows: receipts (including a cash balance on the beginning of the planned period), costs of money resources, (including all directions of outflows of means), surplus or defect of a cash (a difference between receipts and an expenditure of means), external sources of attraction of means and the article of debt servicing or payment of dividends. Thus, planning covers all monetary turn-over that allows analyzing and evaluating inflows and outflows of money resources, to make decisions on methods of financing of deficiency of means. The plan of cash flows is considered made if sources of a cover of their deficiency are provided.

By means of the planned income statement the size of received profit in the forthcoming period is advanced. The look-ahead balance shows a property and financial condition of the enterprise on the end of the planned period and reflects changes in assets and liabilities owing to planned actions.