Efficient planning calculations for companies

Updated on 22 August 2026. We reviewed the purpose, types and preparation of planning calculations as well as the underlying legal framework. The methodology has not changed since first publication. We added the Swiss legal framework: under Art. 716a para. 1 no. 3 OR, financial planning is a non-transferable duty of the board of directors, and since the revision of Swiss company law, Art. 725 OR expressly requires the board to monitor the company’s solvency. Still valid without change: the distinction between liquidity planning, the planned income statement and balance sheet planning, the difference from retrospective instruments, and the steps from defining objectives to ongoing monitoring.

Why efficient planning calculations are key to business success

Planning calculations are a central element of accounting and controlling in companies. They serve to anticipate and plan future business activities and are therefore indispensable for strategic and operational management.

For companies limited by shares (AG), financial planning is not optional: under Art. 716a para. 1 no. 3 OR, organizing the accounting, financial control and financial planning is one of the non-transferable and inalienable duties of the board of directors.

The purpose of planning calculations is to anticipate financial results, budget costs and allocate resources to services and products. There are different types of planning calculations, including liquidity planning, the planned income statement and balance sheet planning. Each reflects different aspects of a company’s financial health and development. Art. 725 OR requires the board of directors to monitor the company’s solvency and to take action if insolvency is imminent. Reliable liquidity planning is the instrument the board uses to fulfill this duty.

Basics of planning calculations

Planning calculations are based on defining and applying key concepts such as profitability, liquidity and budgeting. Their forward-looking approach sets them apart from other financial instruments.

While annual financial statements and balance sheets provide a retrospective financial overview, planning calculations focus on the company’s future financial situation and development. By analyzing figures and factors such as expected income, expenses and investments, planning calculations enable well-founded preparation for upcoming challenges and opportunities.

Within the company, planning calculations play an essential role in financial management and contribute significantly to strategic planning.

They enable managers to make well-founded decisions by providing an overview of the company’s future financial situation and budget. By taking external and internal factors into account:

• such as market development
• costs of services and products
• and planned investments,

planning calculations help companies achieve their goals and secure their profitability in the long term.

Preparing planning calculations

Preparing planning calculations begins with defining clear objectives and identifying the required data and resources. Companies first need to understand what they want to achieve with their planning calculations, whether securing liquidity, maximizing profitability or supporting strategic decisions for future growth.

Steps for preparing planning calculations

Defining objectives: At the outset, you need to determine which specific objectives the planning calculation should pursue. These could include improving budgeting accuracy, planning investments or preparing for future market developments.

Data collection:

Collecting relevant data from accounting, controlling and other internal sources is the foundation of every planning calculation. This includes historical financial data, information on market trends, expectations for economic and industry-specific developments, and internal data on past costs, revenues and budgets. The quality of the planning calculation depends largely on the accuracy and relevance of the data used.

Analysis and forecasting:

The collected data is analyzed and used to prepare forecasts of future financial results. Various methods are used here, from simple trend analyses to complex models that take multiple factors into account.

Modeling:

The forecasts are transferred into financial models that present the expected results as income statements, balance sheets and liquidity plans. These models are essential for simulating how different scenarios and decisions affect the company’s financial health.

Review and adjustment:

Once the models are created, it is important to review them critically and adjust them where necessary. This step often involves a process in which planning calculations are refined based on feedback from stakeholders and new information.

Implementation and monitoring:

After the final adjustment, the planning calculations are implemented. It is crucial to compare actual financial results with the forecasts continuously and to adjust the planning calculations accordingly, so that you can respond to changes in the company or the market.