financial plan
The financial plan serves to maintain the liquidity (solvency) of an economic entity such as a company or state .
Companies
If a debtor does not meet his payment obligations, or if he is not able to meet the due payment obligations, the general opening reason for the opening of insolvency proceedings is in accordance with Section 17 in conjunction with Section 16 of the Insolvency Code. In order to avoid insolvency, the economic entities have to plan future payments and payments. A financial plan shows which financial resources are required on which dates in the planning period and where they should be obtained from. Existing or expected financing gaps, so-called deficits , are identified by a financial plan.
In addition to financial accounting, the financial plan is another important instrument of (operational) accounting. The information required for the task of "ensuring solvency at all times" cannot be obtained from financial accounting alone: On the one hand, primarily historical data is recorded in financial accounting (documentation of business cases). On the other hand, both cash and non-cash transactions are equally included in the financial accounting. Non-cash transactions include, for example, depreciation on property, plant and equipment, changes in inventories on the various accounts for inventories and goods, but also increases or decreases in receivables and payables.
The sale of goods on target is a striking example : In financial accounting, this business case leads to an increase in trade accounts receivable. An income and thus an income is posted here without actually having a deposit (understood as an increase in the cash balance ). Such a business case improves the earnings position, but not the liquidity position of the company and must therefore not (yet) be taken into account in financial planning.
The subject of the financial plan is the (always future-oriented) planning and control of all incoming and outgoing payment flows of the economic entity related to the entire company . The financial plan, often referred to as the overall financial budget, consists of several different partial or sub-plans (partial budgets). For example, it is based on the sales plan , investment plan and production plan .
A financing plan is being drawn up in the area of real estate financing .
Country
In the Federal Republic of Germany , the federal financial plan is the financial planning for the federal government decided by the federal government . The financial plan is used to plan the adoption of the annual federal budget and covers a period of five years. The first year is always the current budget year . The second year is covered by the draft budget for the coming year, so that three more planning years follow. The finance plan is drawn up by the Federal Ministry of Finance . It is decided by the federal government together with the government draft for the federal budget in the middle of a year and then submitted to the Federal Council and the German Bundestag for information.
The legal basis for drawing up the financial plan is the Stability and Growth Act of 1967 and the Budget Principles Act .
Basic structure
| Starting balance of cash at the beginning of the plan period + plan payments for the plan period - plan payments for the plan period = Final level of solvency at the end of the plan period |
swell
- ↑ Definition of financial plan according to BMF ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ Dr. Hans Jung: General Business Administration , Munich / Vienna 2006
