Something New About Current Financial Planning

Current financial planning is an integral part of the long-term plan. It is based on the established financial strategy and financial policies on certain aspects of financial activity and represents a specification of its parameters. Developing specific types of ongoing financial plans allows the company to define the coming period, all sources of funding for its development, form the structure of revenues and costs the company to ensure continued solvency, determine the structure of assets and the firm’s capital at the end of the planning period.

Current financial planning is to develop three key documents:
 Plan cash flow;
 Plan of the profit and loss account;
 Plan balance sheet.

The main purpose of these documents is assessment of the financial situation of the company at the end of the planning period. The current financial plan is created for a period of one year.
A yearly financial plan is divided on a quarterly or monthly, depending on the funding needs. More specific plan allows you to more accurately coordinate the movement of funds to match income and expenses, eliminate cash gaps.

On the phase of creating the annual financial plan is established and respective capabilities of the enterprise for the production of products, services supply and demand in the market.
Current financial plans of the enterprise are developed from data on:

 financial strategy of the firm;
 results of financial analysis in the intervening period;
 planned volume of production and sales;
 other economic indicators of the operating activities of the company.

Also on plans developed affect the existing legislation, the tax system and other external factors.
For the financial instruments it is important to determine the amount of future sales, usually this plan is still at the stage of long-term financial planning.

Based on these data, the necessary amount of material and labor resources are determined and other composite manufacturing costs are calculated. And already, based on these data, a planned profit and loss account are developed. With this report profit margin is projected, which must be received in the settlement period.

At present time in medium and large enterprises method for planning costs of the centers of responsibility is widespread, when the head of each department is responsible for the costs of his department.

Then there is a plan for cash flow. This plan takes into account all receipts and disbursements, costs and expenses, shows the net cash flow, then there is an excess or deficit of funds at a particular time. In fact, it shows the cash flows of the current, investment and financial activities. Differentiation of types of activities can improve cash flow management.

The plan of cash flows for the year is drawn up by quarters and includes two main parts: income and expenditure. These parts are in turn divided into expense (income) by type of activity: the current, investment and finance.
Final document of current annual financial plan is a planned balance of assets and liabilities at the end of the planning period. It shows the condition of the property and finance companies as a result of the proposed activity.

The object of developing the balance plan is the formation of an optimal capital structure, providing sufficient financial stability of companies in the future period. Financial control is done by comparing actual performance with the plan.

World crisis has made many people look around for different ways to save funds and saving money expert. Another part who already made some cash and would like to make more, for sure might be interested in mutual funds investment advice. Moreover, financial planning might be of great interest to young people as they need to cope with many things in their lives, and here financial advice for young people site could help them.

Fortunately we live in the world of digital technologies. It wouldn’t be wise not to use this really unique opportunity. Current online technologies allow us to break the borders and search anything we need all over the planet. Check out different social networks, look through related topics, participate in online discussions in niche forums. All this will help you keep abreast of the events concerning your interests. And, sign up for the RSS feed on this blog not to miss the latest publications on the topic.

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