Financial Planning

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					FINANCIAL PLANNING


In everyday life peoples are managing money but few of them plan to find the most efficient
way to spend it or invest it. Financial planning is a weapon of great importance to civil-society
organizations in decision-making processes. That is why companies take very seriously this
tool and devote abundant resources.

The ultimate goal of this plan is a "financial plan" which outlines and describes the company's
financial tactics, as well as the future projections are based on different accounting and
financial statements of the same.
The plan is to outline what it intends to meet targets (potential and optimal) to be evaluated
later.

Although obtaining this financial strategy is the ultimate goal of the plan, it does not occur with
vague comments, throw over, the financial situation of the company (finance and investment)
only occurs after an extensive and thorough analysis all effects, both positive and negative,
that may occur for each decision taken with regard to financing or investment.

These decisions must be taken together and not separately as this could cause problems by
not taking into account decisions bring consequences for other sectors of the business.

Optimizing:

There is no perfect plan. To achieve an optimal plan are made close to trial and error
processes.

Good planning should lead to managers to take into account events that may disrupt the good
performance of the company or at least hinder it to achieve this in order to take measures to
counteract these effects.

All the analysis and observations lead us to believe that planning is not only foresight but is
expected to take into account the likely future aside the improbable or surprises (desirable or
undesirable).

REQUIREMENTS FOR EFFECTIVE PLANNING ARE:

1. FORECAST:

It must provide for the probable and improbable, is of benefit or detriment to the company.

2. OPTIMAL FINANCING:

There is an optimal plan. "Financial planners have to deal with unresolved issues and cope as
best they can, based on their criteria." Balancing debt, revenue, cost, cost of capital, returns,
etc. It is not easy but it is the job of chief financial officer of a firm.

3. VIEW OF THE DEVELOPMENT PLAN:

See if it has been feasible path to be taken and if not try to make the changes necessary. "...
The long-term plans serve as benchmarks for judging the subsequent behavior."

Another point where the financial planner must be careful not to get involved is too much
detail because they may miss items of great importance in the strategy.

Since there is a theory that leads to optimal financial plan, the planning is done by trial and
error process, as bending over for a final plan can be formulated various strategies based on
various future events.

When projecting plenty of plans using planning models which can predict the future
consequences, but do not create the optimal plan, do make the task easier and shorter and
we can approach it.

				
DOCUMENT INFO
Description: The ultimate goal of this plan is a "financial plan" which outlines and describes the company's financial tactics, as well as the future projections are based on different accounting and financial statements of the same.