Modeling the financial planning process in the corporation

The article examines financial planning process in a corporation. The study is meant to develop elements interaction model in the corporate financial planning system. The proposed hypothesis assumes that the use of general scientific methods use of system analysis, comparative analysis, logical analysis, synthesis, and generalization reveals the financial planning elements interacting, detail this process and describe its mechanism. As a study result, 3 financial planning models in corporations were obtained: a simple model, a black box model, and a feedback model. The first model assumes process approach, illustrates financial planning elements interaction and reveals financial planning impact on corporation financial condition. In the construction of the second model financial planning is considered as a system and a black box cybernetics technique is used where we only know the input (x) and output (y) variables. The third model involves the use of feedback which manifests itself in the constant adjustment of the financial planning goals and objectives, depending on the changes in various parameters that affect the corporation financial condition. The study provided evidence that correctly formulated goals are the starting point in the financial planning process; goals, planning techniques, and results act as interacting elements in this process; it is possible to regulate the processes occurring in the financial planning system collecting feedback; it is impossible to separate process, system, and situational approaches in the corporation financial management. The obtained results contribute to the development of the theory and corporate financial planning methodology and allow to expand and deepen knowledge in this area. The results can be used to create different corporate financial planning process scenarios.