CONCEPTUAL FOUNDATIONS OF COMPANY CASH FLOW PLANNING

Abstract

The article deals with the conceptual foundations and principles of cash flow planning that will enable coherence between cash flow and tactical and strategic objectives of the company. An important objective of this is monitoring the formation and use of payment instruments as well as providing financial resources for the operating, financial performance and an investment either. The author analyzes the methods of cash flow planning (economic - statistical, economic - mathematical, technical - economic), its principles (complying the proportions of funds  distribution and their minimum required volume, flexibility, evaluating the effectiveness of funds usage, adequate spacing and planning methods) as well as external and internal factors that influence the effectiveness of planning. Much attention is paid to different kinds of cash flow planning: strategic, current, operational and the making of the payment calendar and tasks which it solves. The structure of the cash flow budget has been surveyed. The causes of deficiency and excess cash and ways to balance them have been analyzed: attracting of additional loan capital, reducing of costs, improving the work with current assets, reducing of investment program, and early repayment of long-term loans. Two basic methods (alignment and synchronization), used in the process of the cash flow optimization, have been mentioned. Much attention is paid to the stages of the cash flow planning implementation process. They are: planning without automation, automated planning and formalized planning. So the analyzed aspects will allow achieving a systematic approach in cash flow planning, in coordination of their movements and tasks of the enterprises.