Business Editorial

Archive for the ‘Financial planning’ Category

Plan: Make a project plan or action. Therefore, financial planning would not be to predict the future, but in designing the company’s finances in ways that contribute to achieving the objectives fixed by the company. That is, is to determine the income statement and balance to be based on the company strategy. To get them, however, will be required before a forecast of cash flow.

In the budget were to materialize cash receipts and payments that will occur. The first thing will be to study the movements related to ordinary activities of the company, ie the inflows and outflows of cash arising from the farm business and are performed routinely. Then they proceed to examine the extraordinary cash flows will be those who either do not have to do with the holding, or do have to look at but are performed sporadically. The next step is to analyze the VAT of all these charges and payments to see when and how liquid is generated by financial need because of this period based on the billing and payment. Finally, this cash will be added that the company needs to take into account during the period analyzed. With all of this will be defined what the total financial need of the company. This information will be essential to calculate the pension account for results, then calculate the forecast balance sheet. But before the forecast would be calculated on movements in both stocks and customers. So, you can estimate the income statement. Read the rest of this entry »