the ace finance Its one of the weak points of entrepreneurs. Although they do not have to be experts, having knowledge in accounting and finance is important when it comes to create a business financial plan. In this way, you will be able to analyze the economic viability of your project and see what you need for its continuity or for its start-up.
You may be interested: Master in Financial Management and Controlling
The Financial plan of a company be part of the trading plan of a company along with other areas such as marketing, human resources, operations, legal. Once all the previous areas have been defined, it is time to check if it is feasible and see our financing needs, which include office costs, the purchase of material, the salary of employees…
Why do you need a financial plan?
- By doing it, you know the short-term financing needs (routine company operation) and long-term (investment financing).
- You know the economic viability and the possible returns and conversions.
- Analyze the minimum volume of sales necessary to start earning money, overcome the well-known break even point.
- It allows studying the possible factors that can affect both positively and negatively the company.
Benefits of making a financial plan
The first year of any company is the most difficult; Getting a foothold in the market and without having many losses is the goal of all entrepreneurs. A good financial plan can prevent mistakes that cause the recurrence of more capital or include the closure of the business.
among the main benefits of creating a financial plan we highlight:
- Know if the negotiation idea or new project is profitable.
- Check financial health and see what our current and future needs are
- Identify the initial investment necessary to earn income.
- Saber how many resources are needed to offer our products and services for an estimated time.
- know which one is ours production capacity to calculate the inputs that we can get has obtained.
- identify tired Sources of funding to which it is owed and can resort
- Define strategy and scenarios. (in the short, medium and long term) to improve the financial situation
- Make known all the financial information of the company to the restaurant of actors: partners, investors, suppliers…
As entrepreneurs, we can take advantage of all these advantages as long as we continue with our financial plan even if the business is already set up and running.
It is necessary to review it periodically and update it based on the needs that arise; In this way we will be able to anticipate future events and be prepared for the constant changes in the industry. accounting there you go finance that happen in the market.
10 financial keys to operate
Discharge
What information is needed to start a financial plan?
Necessities collect the following information:
Master in Financial Management and Control
Prepare to assume the economic-financial management and plan and supervise the financial control department
Find out more!
- What prices will each service or product have and the approximate sales estimate for each one.
- How much will it cost me to produce those services or products?
- How many workers do I need and how much will they cost me?
- All administrative, general and tax expenses must be taken into account.
- Am I going to invest in something (materials, services or other companies)?
The 5 key aspects of a financial planoh
Depending on the nature of the company, the financial plan may have more or less variables. In any case, we must never ignore the following points:
Investment plan
In this first point we must define adequate will be the necessary investments for startup. Here there is also room for the needs of operational treasury, payment to suppliers, stock of materials…
Balance
It allows analyzing the financial situation of the company at a time of completion. Essential to identify the value of a companyhow much and how much
cash budget
It is the sum of the different budgets (sales, administration, development, capital…), the sales forecast, the personnel plan and the cost of sales. Also, you should check the cash flow statementthrough which it records the transactions that affect the amount of cash available.
Provisional profit and loss account
You must make a forecast of future results in which you include the volume of sales and other income and the costs necessary to sell your products and services. From here, you have to make a interim balance sheet in which the forecasts of investment, financing and income statement are integrated. In this way we will calculate the break-even point or profitability threshold of the company, and we will see if we can achieve it with the expected sales.
treasury plan
It reflects the outflows and inflows of money based on the operations that a company is going to carry out during a certain time. We will be able to know at all times the liquidation situation of the project and if it is necessary to acquire external financing.
From these five points you can already elaborate the business financial plan and see how much you need to get ahead and how long you can achieve it. For this reason it is vital to pay attention to any detail to avoid last minute surprises. If you have a company, you should not neglect your training to find the best solutions for your business.
Do you want to take the plunge? At IEBS we have the best offer to continue learning as the Master in Financial Management and Control from IEBSschool. Check them out at the link above!,
Master in Financial Management and Control
Prepare to assume the economic-financial management and plan and supervise the financial control department
Find out more!
Source link
Related Posts
Monkeypox Vaccine – Emergency Use Authorization – Digital Pharmacist
JYNNEOS vaccine side effects Possible side effects of the JYNNEOS vaccine include pain at the injection site, swelling, itching, fatigue, headache, nausea, chills, and muscle aches. Patients receiving...
