Corporate financial planning during the digitalization of the economy

Abstract

Subject. Due to the current circumstances of the economic crisis, high competition, impact of the COVID-19 pandemic, enterprises decide to develop the digitalization of financial planning, since it will allow them to use new IT resources, quickly respond to market changes and manage their resources flexibly. Objectives. I herein study possible ways of developing the digitalization of financial planning for industrial enterprises. Methods. The study is based on methods of empirical (observation, collection and selection of facts and tracing their relationship) and theoretical research (study into the internal structure and development patterns of systems and phenomena, their interaction). Results. The article unveils what urged to start the digital transformation, and determined key challenges and avenues of the digitalization of financial planning for industrial enterprises. Conclusions and Relevance. During the crisis, financial planning should follow from the strategy to tactics. Strategic financial planning requires to look into the future of the development, understand the objective, analyze strengths and weaknesses, summarize strategic alternatives, and choose aspects for further optimization. Setting up a new financial plan to become more competitive and effective, in the current circumstances of the economic digitalization, the enterprise should convert into a new IT format, which would ensure the comprehensive nature of planning procedures, their continuity to make the system more flexible and adapt it to the production specifics in terms of the time horizon, type of production, and conditions of internal and external operations.