FINANCIAL PLANNING AND ANALYSIS AT THE ENTERPRISE: CURRENT GLOBAL TRENDS AND DEVELOPMENT PROSPECTS
Abstract
The pandemic of COVID-19 has made it clear that the existing system of financial planning and analysis cannot fully meet new needs and adequately respond to new challenges. Old ways of working and organizing of financial planning and analysis do not always meet the needs of business and should be carried out more widely and deeply. The aim of the article is to consider global trends in the field of financial planning and analysis, which correspond to modern management concepts, substantiation of prospects for their development taking into account the realities of the Covid-19 pandemic and assessment of the possibility of their application in the domestic practice of financial management in enterprises. It is determined that financial planning and analysis (FP&A) should be considered as a decision-making platform that includes reporting and analysis, planning and budgeting, forecasting and financial modeling that support the financial health and business strategy of the enterprise. Based on the generalization of existing world experience, the author proposes to highlight the following principles of building an effective FP&A process in the enterprise: fundamental, responsibilities and success, as well as the stages of the FP&A process that correspond to each of them. The main focus of the article is on the methodical approaches used in modern world practice and global trends in FP&A. In this context, an extended description of modern methods and models is given: beyond budgeting, zero-based budgeting, driver-based models, participatory planning, expanding time horizons, flexible and dynamic planning (initiative planning, scenario planning, contingency planning, risk-adjusted planning and rolling forecasts). Based on the forecasts of leading experts in the field of FP&A, the article substantiates the prospects for its development, taking into account the realities of the Covid-19 pandemic. Accordingly, further vectors of FP&A development can be: transformation of traditional FP&A into extended planning and analysis (xP&A) or business planning and analysis (BP&A); adaptation of FP&A to the "new normality"; development of FP&A according to new models, scenarios and data. Possibilities and expediency of application of contemporary FP&A practices in Ukrainian practice of financial management in enterprises are also estimated.
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