Why Efficient Planning Calculations Are Key to Business Success
Planning calculations are a central element of accounting and controlling. They serve to anticipate and plan future business activities and are therefore essential for both strategic and operational management.
The purpose of planning calculations is to anticipate financial results, budget costs and allocate resources for products and services. Different types of planning calculations exist, including liquidity planning, income planning and balance sheet planning, each reflecting different aspects of a company’s financial health and development.
Fundamentals of Planning Calculations
Planning calculations are based on key concepts such as profitability, liquidity and budgeting. They differ from other financial instruments due to their forward-looking approach.
While financial statements and balance sheets provide a retrospective view of financial performance, planning calculations focus on the future financial position and development of a company. By analysing figures such as expected income, expenses and investments, planning calculations enable thorough preparation for upcoming challenges and opportunities.
Within the company context, planning calculations play a crucial role in financial management and contribute significantly to strategic planning. They allow management to make informed decisions by providing an overview of future financial position and budget.
By considering internal and external factors such as market developments, costs of products and services and planned investments, planning calculations help companies achieve their objectives and secure long-term profitability.
Preparation of Planning Calculations
The preparation of planning calculations begins with defining clear objectives and identifying the required data and resources. Companies must first understand what they want to achieve, whether securing liquidity, maximising profitability or supporting strategic growth decisions.
Key Steps in Preparing Planning Calculations
Definition of objectives:
Clear objectives must be set at the outset, such as improving budgeting accuracy, planning investments or preparing for future market developments.
Data collection:
Relevant data from accounting, controlling, and other internal sources form the foundation of any planning calculation. This includes historical financial data, market trends, economic and industry expectations, as well as internal data on past costs, revenues and budgets. The quality of planning calculations largely depends on the accuracy and relevance of the data used.
Analysis and forecasting:
Based on the collected data, analyses are conducted to develop forecasts of future financial results. Methods range from simple trend analyses to complex models incorporating multiple variables.
Modelling:
Forecasts are translated into financial models representing expected results in income statements, balance sheets and liquidity plans. These models are essential for simulating the impact of different scenarios and decisions on the company’s financial health.
Review and adjustment:
Once models are created, they must be critically reviewed and adjusted where necessary. This often involves incorporating feedback from stakeholders and updating assumptions based on new information.
Implementation and monitoring:
After finalisation, planning calculations are implemented. Actual financial results must be continuously compared with forecasts, and plans adjusted to respond to changes in the business or market environment.
Required Data and Resources
Successful planning calculations require a broad range of data and resources, including detailed financial histories, market data, internal process and capacity information, available technologies and forward-looking forecasts.
Preparing planning calculations therefore requires not only financial expertise but also a deep understanding of the company and its environment. Through careful planning and regular review, planning calculations become a valuable management tool for minimising risks and proactively leveraging opportunities.
In modern business environments, software and digital tools play a key role in creating and reviewing planning calculations.
Solutions range from basic accounting software to comprehensive controlling and business planning tools. The main advantage of specialised software lies in automated calculations, integration of multiple data sources and simplified reporting, enabling precise and efficient planning.
