Financial Planning: An Analysis of Methods and Strategies for Improvement

Abstract

The paper investigates issues, concerning financial planning at the enterprise. Methods and models of financial forecasting are analyzed and their unification is proposed. The main problems of financial instruments using (such as financial planning) are described. Planning is important element of management, which ensures achievement of strategic priorities. Effective financial planning is essential tool of achieving of the main goals of the enterprise ? profit maximization and cost of the enterprise. As market conditions in Ukrainian market of goods and services have its own specificity, which is defined, on the one hand, by means of analysis, formation and allocation of financial resources, and, on the other hand, the sourcesofreserves increasing, in order to implement the operating and investment activities to ensure their sustainable financial development. It should be noted that the formation of these processes has a significant impact on both objective and subjective factors, such as instability of tax policy and regulatory legislation for national currency, the impact of the global economic crisis, reducing the resources and available current assets etc.

Introduction

Financial planning is a core element of a company’s financial management system and a critical function for achieving strategic and operational goals. It transforms company objectives into concrete financial forecasts and action plans, enabling efficient use of resources, risk minimization, and long-term financial stability, especially under conditions of economic uncertainty. Effective financial planning, together with financial analysis and controlling, is essential for successful implementation of a company’s financial strategy.

The study emphasizes that many enterprises underestimate financial planning, which negatively affects management quality and market performance. Using JSC Kharkiv Tile Factory as a case study, the research analyzes financial and economic performance during 2013–2015. The company showed steady growth in income, assets, labor productivity, and equity capital, although profitability indicators declined in 2014 before recovering in 2015. Overall, the enterprise demonstrated stable development despite operating in an uncertain and inflationary economic environment.

Econometric methods such as trend analysis, regression, correlation, and multiple regression were applied to evaluate performance and forecast future indicators. Results revealed a strong positive relationship between net income and time, as well as significant influence of equity capital and current liabilities on net profit. However, the models also showed limitations, as not all influencing factors and economic volatility could be fully captured.

The study concludes that although financial work at the company is generally efficient, financial planning and forecasting remain insufficiently developed and disconnected from supply and marketing functions. To improve effectiveness, the paper proposes measures such as enhancing data transparency, reducing decision-making time, implementing advanced information technologies, strengthening strategic and risk-based planning, and establishing a dedicated financial planning department. Overall, a well-organized and adaptive financial planning system is essential for improving company performance and ensuring resilience in volatile market conditions.

Conclusion

So, the result of financial planning introduction is a systemthatincreasestheefficiencyofJSC“Kharkiv Tile Factory” performance and allows: • topredictthefinancialresultsoftheenterprise; • toimprovetheefficiencyofexploitationofresources; • toreceivepreciseinformationfordecision- making; • toimprovecompetitiveness ofthe company. These measures would provide the managerial authorities of the company with the following preferences: • effective and precise assessment of financial stability level, possibility to identify reserves, potential and real threats; • making of strategic decisions in order toimprove company`s competitiveness; • getting management reports on the activities of the company; • providing of budgeting system effective functioning. Thus,JSC“KharkivTileFactory”musthaveeffective andtransparentsystemoffinancialplanning. The above mentioned measures will enable the companytoacceleratetheturnoverofcurrentassets, decrease payables and receivables, increase the efficiencyofthecompany.Theproposedmechanism of financial planning will allow achieving target (normative) indicators of solvency, liquidity and businessactivity. Since the optimal size of financial resources at the enterprise is determined by various criteria and indicators, the authors prefer such indicators as profitability, regulatory solvency indicators, financial independence indices, indicators ofstability and business activity.

References

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Copyright

Copyright © 2026 Parth Bhardwaj, Aparna Vats. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.