Strategic Financial Planning Research Articles

OVERVIEW OF STRATEGIC MANAGEMENT ACCOUNTING METHODS IN THE FUNCTION OF STRATEGIC FINANCIAL PLANNING

Today’s business environment is characterized by globalization, increased competition and new technology, which means that modern companies need different information. The information provided by traditional management accounting is no longer sufficient, because it does not provide all the necessary information about the external environment and non-financial factors that are of key importance for strategic financial planning.

Using financial forecasting as a strategic catalyst for enhancing the financial performance of manufacturing companies in Kigali, Rwanda

Business organizations prioritize their financial performance, channeling significant effort into achieving superior results. This pursuit often involves setting targets, managing quotas, and focusing on crucial key ratios. Financial forecasting emerges as an indispensable tool in plotting the course toward optimal performance. It stands as a strategic asset that assesses strengths and weaknesses, becoming the cornerstone of decisions across production, inventory, personnel, and facilities. In the realm of manufacturing firms, effective financial forecasting isn't just pivotal—it's the linchpin for survival, growth, and sustained success. This study delved into the financial forecasting methods commonly employed by 842 manufacturing firms in Kigali, Rwanda. A sample of 90 firms, involving Directors of Finance and Accounting staff, illuminated insights critical to understanding this landscape. Results revealed that sales and profit forecasting reign supreme, embraced by 37.78% and 38.89% of these manufacturing entities, respectively. Yet, challenges persist, notably in achieving forecast accuracy and managing associated risks. Recommendations stem from this diagnosis, suggesting the establishment of review committees dedicated to enhancing forecasting methodologies. Ensuring the credibility and reliability of this study involved employing the test-retest method to validate and solidify the consistency and accuracy of the data. This approach underpins the findings, indicating that similar research efforts would yield consistent results, reinforcing the authenticity of the depicted ground reality. To bolster financial performance without limiting operational agility in a swiftly changing business environment, the study emphasizes the need for continued improvements in forecasting processes. This includes not only refining methods but also devising strategies to navigate unforeseen challenges effectively. Keywords: Financial performance, Financial forecasting, Strategic financial planning, Accounting staff, Manufacturing firms.

The role of strategic financial management in ensuring the competitiveness of enterprises

This paper presents a methodology for assessing the level of strategic financial management in an organization, which is based on determining the criteria for the overall economic efficiency of organizational activity. It was established that financial management plays an important role in the overall management system of the organization, since financial resources are the source from which other types of resources are formed - material, labor, investment, and one of the main factors that ensure the competitiveness and financial stability of the organization. Strategic financial management is an important element of entrepreneurial activity and important elements of entrepreneurial activity. The instability and unpredictability of changes in the external environment of the business structure requires the management of the organization to develop an adaptive and effective system for making business decisions. The system of strategic financial management in the organization consists of strategic financial analysis and comprehensive assessment of the strategic financial position of the organization, strategic financial planning, development of strategic criteria for the financial activity of the organization, adoption of strategic financial decisions, formation and implementation of financial strategy, strategic management system and assessment of the level of strategic financial management. Criteria for the effectiveness of strategic financial management have been determined. The criteria are divided into blocks according to the influence of factors of the organization's internal and external financial environment. It is proposed to evaluate the level of strategic financial management of an organization as a sum of criteria for its overall effectiveness. The proposed method of assessing the level of strategic financial management can be considered as the first step towards the organization of the management system of the activity of the economic entity as a whole. Its application makes it possible to create a database for analyzing the organization's financial condition and improve the financial management system for making effective management decisions.

Insights into Effective Corporate Financial Management Practices and Their Implications

Purpose: This study aims to analyze effective corporate financial management practices and their implications. The focus is on identifying key determinants, examining their impact on firm performance and shareholder value, and exploring moderating effects of contextual factors such as industry characteristics and regulatory environments. Practical implications for corporate managers, investors, policymakers, and stakeholders are also provided. Research Design and Methodology: A quantitative descriptive research design is employed, synthesizing insights from existing literature. Data is collected through comprehensive literature searches in academic databases, journals, books, and conference proceedings. Thematic analysis, content analysis, and narrative synthesis are used to identify key themes, theoretical frameworks, and empirical findings. Findings and Discussion: Findings reveal that strategic financial planning, capital structure decisions, effective risk management, and transparent financial reporting are crucial components of effective corporate financial management. Strategic financial planning guides decision-making and resource allocation. Optimal capital structure decisions balance debt and equity to maximize shareholder value. Effective risk management enhances financial stability and resilience, while transparent financial reporting fosters investor trust and market efficiency. Strong corporate governance mechanisms are essential for ensuring transparency, accountability, and ethical conduct in financial management practices. Implications: Practical implications include adopting an integrated approach to financial management, encompassing financial planning, capital structure decisions, risk management, and transparent reporting. Emphasizing strong corporate governance is crucial for ethical and accountable financial practices. Future research should explore emerging trends, challenges, and opportunities in corporate financial management, ensuring organizations remain resilient and adaptable in a dynamic business environment.

Juxtaposing Sub-Sahara Africa’s energy poverty and renewable energy potential

Recently, the International Energy Agency (IEA) released a comprehensive roadmap for the global energy sector to achieve net-zero emission by 2050. Considering the sizeable share of (Sub-Sahara) Africa in the global population, the attainment of global energy sector net-zero emission is practically impossible without a commitment from African countries. Therefore, it is important to study and analyze feasible/sustainable ways to solve the energy/electricity poverty in Africa. In this paper, the energy poverty in Africa and the high renewable energy (RE) potential are reviewed. Beyond this, the generation of electricity from the abundant RE potential in this region is analyzed in hourly timestep. This study is novel as it proposes a Sub-Sahara Africa (SSA) central grid as one of the fastest/feasible solutions to the energy poverty problem in this region. The integration of a sizeable share of electric vehicles with the proposed central grid is also analyzed. This study aims to determine the RE electricity generation capacities, economic costs, and supply strategies required to balance the projected future electricity demand in SSA. The analysis presented in this study is done considering 2030 and 2040 as the targeted years of implementation. EnergyPLAN simulation program is used to simulate/analyze the generation of electricity for the central grid. The review of the energy poverty in SSA showed that the electricity access of all the countries in this region is less than 100%. The analysis of the proposed central RE grid system is a viable and sustainable option, however, it requires strategic financial planning for its implementation. The cheapest investment cost from all the case scenarios in this study is $298 billion. Considering the use of a single RE technology, wind power systems implementation by 2030 and 2040 are the most feasible options as they have the least economic costs. Overall, the integration of the existing/fossil-fueled power systems with RE technologies for the proposed central grid will be the cheapest/easiest pathway as it requires the least economic costs. While this does not require the integration of storage systems, it will help the SSA countries reduce their electricity sector carbon emission by 56.6% and 61.8% by 2030 and 2040 respectively.

МЕТОДИЧНІ ТА ПРИКЛАДНІ АСПЕКТИ ВИКОРИСТАННЯ МАТРИЦІ BCG

The BCG method is a portfolio analysis tool. It is used to effectively manage a business. This method helps to identify which businesses should be invested in and which should be disposed of. Nowadays BCG method is a popular tool for planning corporate product portfolios. However, this method has come under a lot of criticism, with many academics drawing attention to methodological weaknesses of product portfolio analysis based on the BCG matrix. The relevance of further research of the BCG matrix method leads to methodological and practical issues. They arise when the assortment of the entity in a particular market is evaluated. The following research methods are used: monographic (in the study of theoretical and methodological foundations of the classical method Boston Consulting Group Matrix); dialectical, abstract-logical (for theoretical generalizations to identify methodological shortcomings and ways to overcome them, the formulation of conclusions), graphic and tabular (to present research results). We have proved that the use of the traditional BCG matrix methodology can be impossible in practice because of the lack of accurate data on competitors and their sales volumes of certain products. The main problems arising in the construction of the BCG matrix: the lack of clear criteria for classifying businesses to a particular market, the existence of alternative methodologies for calculating the market share of the product, the lack of unambiguous quantitative criteria for classifying products as «high» or «low» market share, the lack of unambiguous quantitative criteria for classifying products as having «high» or «low» growth rates, the failure to compare only two years to evaluate the market growth. The objectives of the study are to adapt the classical matrix for use in an uncertain market environment. The proposed refinements to the use of the BCG matrix deserve to be implemented in the practice of strategic management of companies. The results of the analysis using the modified BCG matrix can be used in financial strategic planning and in the development of the marketing strategy, in particular when planning advertising campaigns.

РАЗРАБОТКА И ПРИМЕНЕНИЕ СЦЕНАРИЕВ В СТРАТЕГИЧЕСКОМ ФИНАНСОВОМ ПЛАНИРОВАНИИ

Scenario analysis as a method of financial planning and risk assessment is actively used by financial departments in large companies. The growing attention of banks and institutional investors to sustainable development issues contributes to the spread of scenario analysis in the corporate sector. The practice and approaches to scenario analysis have significant differences. The article attempts to systematize the approaches to scenario analysis described in the literature, identify the main essential elements of scenario analysis and propose a universal methodology for scenario analysis for strategic financial planning, which can be used by companies from various industries.

ПОДАТКОВА ОПТИМІЗАЦІЯ У РАМКАХ ФОРМУВАННЯ ФІНАНСОВОЇ СТРАТЕГІЇ СТАЛОГО РОЗВИТКУ ПІДПРИЄМСТВА

Methodological provisions and practical recommendations regarding the formation of a financial strategy for the sustainable development of the enterprise, including through the optimization of taxation and the growth of business value in a strategic perspective, were further developed in the article. Correspondence and differences between the categories of "financial and economic stability", "potential for financial and economic stability" and "financial balance" were considered, which made it possible to identify the system capabilities of the enterprise to form and distribute resource flows with the greatest economic benefit and minimal risk. Formulated approaches to determining the main parameters of enterprise value management, which involve determining the possibilities and limits of its growth, qualitative requirements for the choice of capital structure and limits of financial stability. A conceptual model for the formation of a financial strategy for the sustainable development of an enterprise is proposed, the main blocks of which include the positioning of long-term economic prospects, the diagnosis of its current state and the amount of resource potential in the future, optimization of the capital structure, planning of financial activities, etc. As part of strategic financial planning, an approach to simulation modeling of tax payments is proposed, the results of which will allow determining the directions of maximizing net cash flows, minimizing the outflow of financial resources, reducing the tax burden with the aim of increasing the value of the enterprise in the future. The expediency of using tax optimization tools in the process of forming and implementing a financial strategy for the sustainable development of an enterprise, which has a multi-operational economic nature and includes the choice of the method of amortization of fixed assets, variable forms of asset acquisition, rational pricing, various types of financial preferences, methods of rationalizing tax accounting, is indicated. Conclusions were made regarding the formation of an adaptive mechanism of the financial strategy of the enterprises sustainable development as a tool for increasing the efficiency of financial management.

Financial aspects of competitive strategies of corporations in modern conditions

The article considers the transformation of the financial component of competitive strategies of corporations in an environment with high uncertainty.
 The driving forces of transformations that change the market situation at different levels of the economy are investigated: globalization, digitalization and the Covid-19 pandemic. Their most significant manifestations for corporations are identified, the impact on changes in the nature of competition is established, new approaches to the formation of competitive advantages of corporations are outlined.
 The measures in the financial subsystem of corporations that are crucial for solving the existing problems are analyzed. These measures for most corporations are proposed to be implemented in three stages: ensuring the security and survival of business; stabilization; recovery and development.
 The main priorities of the first stage of transformations are: ensuring solvency based on optimization of cash reserves, accelerated introduction of digital technologies into the activities, development of scenarios for further development.
 Among the most important tasks of the financial manager in the second stage are: implementing operational improvements to increase productivity, reassessing the investment portfolio and strengthening the balance sheet, introducing new approaches to financial planning and analysis designed to work under uncertainty.
 It is noted that at the third stage of the post-crisis recovery of the corporation, financial activities should focus on achieving strategic competitive advantages. The main strategic steps should be: dynamic redistribution of resources, mergers and acquisitions, creation of new niches and growth opportunities, changes in approaches to strategic financial planning.
 It is concluded that the impact of the external environment on the financial subsystem of the corporation has an internally contradictory dual nature, requiring simultaneous diversi­fication and universalization of processes and procedures of financial activities. At the same time, diversification of methods and technologies is more effective in the field of strategic financial management, and universalization - for financial routines.

Boston Consulting Group Matrix: Opportunities for Use in Economic Analysis

Boston Consulting Group Matrix is the most popular methodological tool for analysing corporate portfolios. However, the method of using the Matrix has been frequently criticised, and the peak of popularity of this tool has passed. The purpose of this study is to find new areas of application for the Boston Consulting Group Matrix in the economic analysis of entrepreneurial activity. The following research methods were used: monographic, dialectical, abstract-logical, graphic, and tabular. It is shown that the use of the conventional BCG Matrix method is limited due to the ambiguity of conceptual foundations, methodological problems, and lack of complete information about the activities of competitors. The study proved that inaccuracies in the analysis of the market growth rate and the relative share of individual entities in it allow accurately assessing business prospects in this area. Methodological and applied issues arising when a company evaluates its market share of certain products are considered. A modification of the BCG Matrix is proposed, which distributes the assortment units of the analysed business entity according to certain profit growth reserves. Depending on the objects of a particular analysis, grouping in the modified matrix can be carried out according to individual types of products (goods, works, services) or by groups of buyers (consumers). The main problems with application of the BCG Matrix were clarified and systematised. Solutions for certain shortcomings of the conventional BCG Matrix were found, namely regarding the method for calculating the indicators it holds. A modification of the BCG Matrix is proposed, which classifies types of products (goods, works, services) by prospective profit reserves and changes in their share in the company’s profit structure. A similar matrix is designed to classify buyers of goods or consumers of a company’s services. The study figured out the place of the proposed BCG Matrix modification in economic analysis. The proposed variations of BCG Matrix have an advantage over the classical version, since they are based on internal analysis of only one subject of activity, and not on evaluating the potential of competitors. The developed modification of the analysis method can be integrated into the system of comprehensive economic analysis of any company. The results of the analysis using modified BCG Matrix can be used in financial strategic planning and marketing strategy development, specifically when planning advertising campaigns

Financial Sustainability of Sorsogon State University: An Assessment

The study aimed to analyze the status of the financial sustainability of Sorsogon State University. Determining the extent of financial sustainability as viewed by the administrative staff and the faculty members along with the strategic financial planning, income diversification, and; administration and finance. This study utilized the null hypothesis and tested it with a significant level of 0.05 to measure the difference in the perception of the two groups of respondents. This study could assist the SUC's administrators in formulating policies regarding financial aspects to improve financial literacy and promote the value of transparency, accountability, responsibility, and trust. This descriptive research used documentary analysis and survey questionnaires to measure and analyze the financial sustainability status of Sorsogon State University from the fiscal year 2010 to 2012 along the three pillars of financial sustainability. From this result, an intervention in the form of an income or resource generation manual was proposed to serve as a guide/basis for implementing internally generated projects for Sorsogon State University. Following the findings of the study, it was established that Sorsogon State University has two main sources of budget and income that allow it to continue its operations: government allocations and income created internally by the university.

The Importance of Planning: How Financial Management Competencies Affect the Performance of Nonprofit Organizations

Financial management is vital to the survival of nonprofit organizations and their ability to fulfill their mission. Financial management is composed of a diverse range of tasks which require specific competencies for the success of an organization. This study explores different financial management competencies and their effect on nonprofit financial and organizational performance. Based on survey data from Swiss nonprofit organizations, a set of six distinguishable financial management competencies are derived and applied within a structural equation model. The study finds that self-assessed financial management competencies have significant effects on both the perceived financial and perceived organizational performance of nonprofits. The findings reveal that strategic financial planning competencies have the strongest effect on financial performance, and budgeting competencies have the strongest effect on the organizational performance. The study adds to the understanding of the role of different financial management areas and underlines the importance of administrative capacities for organizational success.

Разработка финансовой стратегии предприятия агропромышленного комплекса: теоретические предпосылки и инструменты

The modern market environment of the agro-industrial business, despite the obvious increase in its investment attractiveness, is characterized by high variability and unpredictability of external factors. Therefore, strategic development is of particular importance. Strategic development of agro-industrial enterprises should be based on such tools as special financial strategy planning, which provides sustainable development. The present article introduces the problem of sustainable development based on a special financial strategy and aimed at increasing the financial stability of the enterprise. The research objective was to substantiate the methodological provisions for an industry-based financial strategy, as well as to define the philosophical essence of the concept of enterprise sustainability and the features of long-term strategic financial planning. The research relied on statistical method, expert assessment, factor analysis, abstract logical method, and linear programming. The article features an algorithm for financial strategy development. Further research will focus on the practical implementation of the algorithm.

Just Imagine Financial Planning Software That Does This

Very little research has been done on strategic financial planning software programming. Today's approach is to perform a single simulation, calculation, or utility application and assume the results apply to all times and allocations for all future ages. But time periods change with age as do allocation characteristics over time. This paper steps back to look at financial planning software programming as a foundational strategy to model retirement income while aging that same retiree over time, meaning looking at all the possible future time periods as well as all prudent allocations over those possible future time periods. Additionally, research to date has focused on “early stage” retirement meaning the retirement event occurs sometime in the retiree’s age-60’s. In other words, the inception of retirement. Little research has been done looking at the transition into later stage ages or later allocations for portfolio income distributions through “late stage” retirement years. It is not enough to know how to initiate retirement. It is also necessary to know how to sustain retirement spending prudently, as well as how spending decisions ripple through age to future bequest balances. This paper reviews concepts on how to imagine that transition to and through late-stage retirement and develop better software programming using a data cloud concept to accomplish that early-to-late stage retirement income modeling based on research evidence. The author is a practitioner nearing nearly three decades specializing in research and application of drawdown of portfolios for supplemental retirement income, clinically with many different retirees of many different ages all at the same moment in time. The author also has numerous research papers published in the Journal of Financial Planning and numerous other published papers leading to the thoughts in these referenced papers and below. The author suggests integrating many different disciplines is important to advancing retirement income planning into more focused modeling, rather than today’s single simulation approach.

Measuring the Quality of the Strategic Financial Planning Information (Q-FPI) in the Local Government

ABSTRACT Having quality information about strategic financial planning is very important for any organization. In the Local Government (LG) it is pivotal, as it is expected to impact strategic decision-making and overall management of local public resources. Yet, empirical research has failed to assess the quality of financial planning information, which must be assured both for management and accountability purposes. By proposing a quality index for strategic financial planning information – the Q-FPI Index – based on programming documents made available on the municipalities’ websites, this research contributes to address this gap. The paper describes the multidimensional conceptual model followed to build the Index, considering the identification of data quality requirements and defining indicators to operationalize them. The Index is then tested through a pilot application, using data from five Portuguese municipalities. The Q-FPI Index constitutes a flexible tool, capable of fostering continuous improvement of local government performance.

CREDIT POLICY OF A COMMERCIAL BANK IN CONDITIONS OF UNCERTAINTY OF THE ECONOMIC ENVIRONMENT

Abstract. The article examines the concept of «credit policy» through the prism of the functions outlined in the development strategy of the banking institution, which is primarily aimed at maximizing resources for rapid response to uncertainties of the external and internal environment. The complex of identified key characteristics allowed to form a holistic view of the nature and specific features of the commercial bank’s credit policy. The article underlines that in conditions of uncertainty, the bank should take into account external and internal environmental factors that have a direct impact on the dynamics of lending to individuals and businesses, and need to be considered at the stage of strategic financial planning, monitoring the implementation of set tasks and in order to timely adjust the policy according to the banking institution’s needs for financial and economic security. The systematised factors are interrelated and interdependent and can have a multifaceted impact on the current state of the credit services of banking institutions’ market and such market’s trends. The article establishes the role of analysis and monitoring of banking institutions’ credit operations in the context of ensuring the effective results of the commercial bank’s credit policy. It is identified that credit risk is now in the spotlight of banking institutions along with the risks of capital adequacy and legal risks, due to the general decline in economic activity of consumers of financial services as a result of the epidemiological crisis and the introduction of quarantine restrictions, which reduced household incomes and negatively affected the financial situation of enterprises. The dynamics of changes in the share of NPLs by groups of banks is analysed, revealing foreign banks’ active work with NPLs. The study pays attention to the use of analytical tools of the commercial bank’s credit policy as a means of managing its financial and economic security in conditions of uncertainty, which concerns constant monitoring of loan portfolio quality and timely detection of NPLs. It also suggests the sequence of lending steps specifying practical aspects of use of analytical tools of credit policy. Keywords: credit policy, commercial bank, management, uncertainty, economic environment, analytical tools, financial market. JEL Classification E51, G21 Formulas: 0; fig.: 7; tabl.: 0; bibl.: 14.

Corporate financial planning during the digitalization of the economy

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.

The Economics of Higher Education in Nepal: Developing a Sustainability Plan

Nepal universities are in a delicate transition now. The enrolment of students is not encouraging; rather it is declining over the years particularly in public universities. Consequently, the outflow of Nepalese students has got momentum over two decades; and nearly a half-million Nepalese students are currently enrolled in foreign universities. The quality education in Nepalese universities is crucial for the return as well as the significant inflow of Nepalese students in the universities of their homeland. However, higher education requires a sustainability plan particularly for the resource generation and promotion of scientific research/publications. Long-term vision, mission, and strategic measures are particularly lacking in Nepal universities. This requires setting objectives and attainable milestones along with specific strategic measures and financial planning that are missing now. The contribution of this paper is twofold. First, it proposes a monitoring framework in the form of a regression model to use as a tool and observe the improvement in higher education in the country. Secondly, it has proposed a typical Sustainability Plan considered appropriate to Nepal; however, it might be equally replicable to other universities of the developing world. Moreover, it has also suggested measures to make such a plan a success.

METHODOLOGICAL APPROACH TO ASSESING THE LEVEL OF STRATEGIC FINANCIAL MANAGEMENT IN AN ORGANIZATION

The article presents a methodological approach to assessing the level of strategic financial management in an organization based on the definition of the criteria for the overall economic efficiency of its activities. It has been found out that financial management in the overall organization management system plays a key role, since financial resources are the source of the formation of other types of resources: material, labor, investment, etc. and one of the main factors ensuring the competitiveness and financial stability of the organization.
 The presented system of strategic financial management in an organization consists of a strategic financial analysis and a comprehensive assessment of the organization’s strategic financial position, strategic financial planning, development of strategic standards for the organization’s financial activities, strategic financial decisions, formation and implementation of a financial strategy, the system of strategic control and assessment of the level of strategic financial management.
 A model for the formation of the financial strategy of an organization has been developed. The criteria for the effectiveness of strategic financial management have been defined. The criteria are divided into blocks depending on the influence of the factors of the internal and external financial environment of an organization.
 It has been proposed to assess the level of strategic financial management in an organization as the sum of the criteria for its overall effectiveness. A technique for determining the average assessment of the level of strategic financial management by elements of the system and stages of the financial management process has been suggested. The suggested methodological approach to assessing the level of strategic financial management can be considered as the first step towards organizing a system for managing the activities of an economic entity as a whole. Its application will allow creating a database for analysis of the financial state of the organization, to improve the financial management system to justify effective management decisions.

Peculiarities of strategic activity of corporations in the conditions of digital economy

This article examines the processes of formation of financial strategy within the system of corporate management in the conditions of digitalization. Implementation of digital technologies in all spheres of life opens new opportunities for socioeconomic development of the companies. In the nearest future, scientific research in the sphere of digital economy will be especially relevant due to heightened risk of being in arrears of global trends. Rapid changes taking place in engineering, technology, and organization of production increase the importance of corporate financial management. The digital age changes the traditional models of sectoral markets, enhances competitiveness between  the participants of economic processes. The theoretical and methodological framework of this research contains the works of economists on the problems of finances, financial management, and planning. The subject of this research is the combination of economic, organizational and management relations developed in the process of strategic activity of corporations in the conditions of digital economy. Enterprises that are adapted to modern economic conditions set new priorities in the process of formation of management models: the role of fixed assets decreases, while intangible assets and information become the key business engines. The effectiveness of management decisions, and thus, the effective functioning of the enterprise overall depends on the availability of accurate, timely and exhaustive information. Prompt responsiveness to the changes of external environment is the primary factor for ensuring effective management of the economic entity. The novelty of this research lies consists in the original concept of corporate financial strategic planning in digital economy in the context of the corporate management system of the industrial enterprise.