Home  Journals  Economic Analysis: Theory and Practice  40(391) - 2014 October

Financial models of information support to management decisions at enterprises

Available online: 26 October 2014

Subject Heading: Management issues

JEL Classification: 

Pages: 22-32

Stiff competition, constant complication of economic and social relations, high dynamics of the processes taking place both around and inside the enterprises make more relevant research in the field of the development and use of financial models as a basis for information support for management decisions. The author considers the possibilities and limitations of using simulations for solution of practical tasks of management. The author concluded that, in order to provide sufficient information for decision-makers, the model should be able to generate predictions of the financial reporting of the company taking into account the linkages and interdependencies between elements (both within a single reporting format, and between elements of different shapes). The author has developed a set of financial models that describe the formation of profit, cash flow, assets and equity of the enterprise for a specified period of time (including the structural scheme of the set and system of equations). The set of models allows the calculation and the linking of individual areas of business activities to adopt variant calculations of the future development scenarios with quantitative forecasts of expected results, as well as to check the quality of management decisions and activities. The proposed approach was validated at a number of enterprises of different industries and can be used as a basis for strategic business management systems. In addition, algorithms and information links, developed by the evolving financial model, can serve as a basis for the implementation of the automated system of operative management of the economy and finances of the company.

Keywords: complex, models, decision making, enterprise, financial modeling, forecasting, information support, management

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