Financial forecasting and budgeting in the context of martial law

Abstract

The article is devoted to the issues of financial forecasting and budgeting at the enterprise in the context of economic turbulence caused by Russia's military aggression against Ukraine, as a result of which enterprises need to make quick management decisions to ensure the ability to operate on a continuous basis. Businesses need to be flexible and ready for constant change. Forecasting information helps to effectively plan resources and make informed decisions for both internal and external users in relation to the entity that generates it. For the purpose of long-term planning of an enterprise's activities, there is an objective need to implement a strategic accounting system that allows for systematic monitoring and analysis of strategic indicators and goals, thereby enabling management to determine the current state of operations and ensure timely response to changes in the business environment. One such practical tool of strategic management accounting is budgeting. Budgeting allows an enterprise to determine what resources can be allocated to achieve strategic goals. Financial forecasting becomes more important due to the focus on short-term budget and cash flow management. The purpose of the article is to develop approaches to financial forecasting and budgeting in the context of economic turbulence based on the analysis of the impact of risks and threats of military operations in Ukraine. Methods. A number of methods and approaches were used: dialectical, analytical, synthesis, comparative, generalisation, systemic, etc. Research results and conclusions. The high level of uncertainty and the rapid pace of economic instability put before the enterprise the requirements to improve traditional approaches to budgeting, in particular, on the basis of the scenario approach and early warning of threats.