Year: 2024
Type: article
Abstract: The article is dedicated to studying the essence of financial forecasting, defining its role, place, and significance in the strategic management system of an enterprise.It has been established that financial forecasting is not identical to, but rather integrated with, strategic planning, budgeting, strategic analysis, and control, providing the necessary data for the development, implementation, and adjustment of strategies.Financial forecasting helps maintain a focus on long-term goals and ensures flexibility in responding to financial and economic changes, thereby enhancing the overall effectiveness of strategic management.It has been proven that financial forecasting is a key element in the strategic management system of an enterprise, providing a foundation for making informed decisions and planning long-term development.This process includes predicting future financial indicators such as revenues, expenses, profits, and cash flows, allowing the enterprise to assess potential risks and opportunities, plan, and determine optimal strategies to achieve its goals.Financial forecasting promotes the effective allocation of resources, supports the stability and competitiveness of the enterprise, and increases its adaptability to changes in the external environment.Thanks to accurate forecasts, management can timely respond to market changes, adjust strategies, and ensure the financial security of the enterprise.In the strategic management system, financial forecasting plays an important role in combining the stages of planning and strategy implementation.During the strategy development process, it provides the necessary data for analyzing and selecting optimal development directions.During the implementation of the strategy, financial forecasts help monitor the execution of plans, evaluate the effectiveness of measures, and make timely adjustments.The results of strategic control provide important feedback for refining and improving future financial forecasts.Therefore, financial forecasting is an integral part of strategic management, contributing to its sustainable development and timely adaptation to a dynamic market environment.This enables enterprises to maintain competitiveness, ensure financial stability, and achieve set goals in the long term.
Source: Investytsiyi praktyka ta dosvid
Author: S. Semenova
Institution: State University of Trade and Economics
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4401836014