Preview

Financial Planning

Better Essays
Open Document
Open Document
942 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Planning
Financial Planning A successful company has to have skilled workers in each level of the organization from top management to regular employees. A successful company must have good working relationship with suppliers and customers outside the organization as well. A successful company has to have enough funding to be able to execute the company’s plans and operations. Financial planning is a process that estimates the capital required and determining the company competition. It is important for a company to have financial policies in place for the organization to be successful. The objectives of financial planning are to figure out capital requirements because this will help determine cost of fixed and current assets. In the capital requirement process long and short term requirement has to be evaluated. A company must determine the capital structure of their organization, such as composition of capital and what capital needed for the business (Heer, 2012). In a business it is important to have a system in place to protect the lending and cash control situations. One of the positions that can help with financial planning is a financial manager, which is a manager that can make sure the resources of the company is being utilize to their best of the company ability. Financial planning is an important process that each company needs to use created objectives, implement policies and procedures. It is important to have adequate funds for the organization. Financial planning helps companies keep track of outflow and inflow of funds, which can create stability for the company (Ehrhardt & Brigham, 2011). It is vital for the company to make sure the suppliers investments are put back into the company. Financial planning is a process that can continue to help the company grow and expansion at the rate necessary for the company success. There is a lot of uncertainty with companies’ financial abilities but with the proper financial planning the uncertainty can be


References: Ehrhardt, M. C., & Brigham, E. F. (2011). Corporate Finance: A Focused Approach. South- Western Cengage Learing. Heer, R. (2012). How agile is your planning? Find out by measuring the ROI of your planning Software. Strategic Finance, 45. Murphy, D.S., Yetmar, S. (2010). Personal financing attitudes. Management Research Review, 33, (8). 811-817. Vietz, O. (n.d.). Financial Forecasting Tools. Retrieved from http://smallbusiness.chron.com /financial-forecasting-tools-4583.html
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    HCS 405: Financial Reporting Practices And Ethics
    • 278 Words
    • 2 Pages

    HCS 405: Financial Reporting Practices And Ethics

    There are four elements of financial management (Baker &Baker, 2011). The first is planning. Financial planning is when one identifies the steps that need to be taken for an organization to reach its objectives. The second element is control. This means controlling each area of an organization,…

    • 278 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Financial Analysis of Lockheed Martin
    • 3132 Words
    • 13 Pages

    Financial Analysis of Lockheed Martin

    3. Ehrhardt, M. C., & Brigham, E. F. (2011). Corporate finance: a focus approach (4th ed.). Mason, OH: South-Western Cengage Learning.…

    • 3132 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Hcs 405 Reporting Practices and Ethics
    • 729 Words
    • 3 Pages

    Hcs 405 Reporting Practices and Ethics

    Within financial management there are four fundamental elements to consider: planning, organizing, controlling, and decision-making. Planning includes a step-by-step process that influences decisions in revenue and organizational goals. Organizational management must intercede between personnel and the induction of financial planning. A financial manager is accountable for decisions made during the planning process. All information assembled and forecasted will aid in informed decisions and positive outcomes (Baker & Baker, 2011).…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Bsbm501a Financial Plans
    • 4174 Words
    • 17 Pages

    Bsbm501a Financial Plans

    HMBFP: Manage Budgets and Financial Plans Student Guide BSBFIM501A: Manage Budgets and Financial Plans Elements of competence Plan financial management approaches Implement financial management approaches Monitor and control finances Review and evaluate financial management processes 1 BSB51107 Diploma of Management MODULE DESCRIPTION…

    • 4174 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Bus 530 IFL
    • 1517 Words
    • 7 Pages

    Bus 530 IFL

    References: Brealey, R. A., Myers, S. C., & Marcus, A. J. (2012). Fundamentals of corporate finance. New York: McGraw-Hill/Irwin.…

    • 1517 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Nursing Budget Analysis
    • 832 Words
    • 4 Pages

    Nursing Budget Analysis

     Financial management: is defined as "a series of activities designed to allocate resources and plan for the efficient operation of the organization". The overall goal of financial management is to meet the total financial needs of the organization.  Budgeting: is the planning function of financial management. The budget translates operational plans into monetary terms.  Budget: is defined as "a written financial plan aimed at controlling the allocation of resources"…

    • 832 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Managing Financial Resources in Health

    • 3192 Words
    • 10 Pages

    Managing Financial Resources in Health

    This is a report which is written based on the concept of financial management and the business resources in health care based company (Bryans, 2007). It is aimed to provide emphasis on the impression of costs and control that are available in the social health care settings. It is also required to provide deep examination of the system that are used in the health care industry to provide effective financial and resource management (Groppelli & Angelico, 2000). This ensures that the organization resources are managed effectively to provide adequate returns.…

    • 3192 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Better Essays

    Reporting Practices and Ethics Paper
    • 962 Words
    • 4 Pages

    Reporting Practices and Ethics Paper

    There are several elements that are involved in financial management. However, there are four key elements that will be discussed throughout this paper. Those elements consist of planning, organizing/directing, controlling, and decision making. Planning requires management to set realistic objectives and devise a plan or course of action to achieve those objectives. It requires managers to be aware of their organizations current financial status as well as their future financial status in order to make sound decisions.…

    • 962 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Hcs 405
    • 1128 Words
    • 5 Pages

    Hcs 405

    Financial management is a vital component to organizational success in health care. Financial management is defined as the planning, directing, monitoring, organizing, and controlling of financial resources within an organization (Business dictionary, 2011). There are four elements or components of financial management. The four components of financial management include planning, controlling, organizing/directing, and decision making (Baker & Baker, 2011). The first element of financial management is planning. Financial planning occurs when one identifies the steps that need to be taken for an organization to reach its objectives or goals. The second element of financial management is control. This includes controlling each area of an organization, making sure there is a plan in place, and making sure that plan is being followed by staff of the organization. The third element of financial planning is organizing and directing. When organizing, one should decide how to use resources most effectively for the financial gain of the organization. Directing allows an individual know everything is running smoothly and effectively. The last element…

    • 1128 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Reporting Practices and Ethics Paper
    • 1061 Words
    • 5 Pages

    Reporting Practices and Ethics Paper

    Financial management is not merely a record of debits and credits. It is a measure of the health of an organization. The four elements of financial management consist of: planning, control, organizing and directing, decision making. The business operations must be planned and the management must be well aware of all the business aspects. The management needs to follow a systematic process to make ethical decisions in sync with the goals of the organization. It must be ensured that sufficient fund is available to perform business operations in time. The management must have the control of business operations and thus the financial activities. The management needs to ensure that each part of the organization is adhering to the goals established for it. The management needs to decide how effectively the resources can be used to achieve the goals. This helps in maintaining the financial health of the organization. There is always a possibility of a financial situation in an organization when a difficult decision is to be taken. Such circumstances require prompt decision making capability along with the understanding of the consequences of the decisions.…

    • 1061 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Financial Planning
    • 695 Words
    • 3 Pages

    Financial Planning

    Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development?…

    • 695 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Reporting Practices and Ethics Paper
    • 1148 Words
    • 5 Pages

    Reporting Practices and Ethics Paper

    Financial managers must know the short and long-term goals of this or her organizations to formulate plans from meeting those goals. Planning is more than the upper management of an organization deciding what it wants to accomplish. Effective planners define strategies when planning and seek the input of everyone involved in the process, and ensure everyone supports the plans and understands their roles in executing the plans. Generally accepted accounting principles (GAAP) usually are regarded…

    • 1148 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Health Care Budget Paper
    • 1163 Words
    • 5 Pages

    Health Care Budget Paper

    Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds for an organization. It means applying general management principles to financial resources of the enterprise or organization. The scope of financial management can cut across a wide range of the organizations departments and can involve investment decisions including investment in fixed assets. Investment in current assets is also a part of investment decisions called working capital decisions. Financial management also involves making financial decisions. These relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decisions are also part of financial management. The finance manager has to take decision with regards to the net profit distribution. Financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be to ensure regular and adequate supply of funds to different departments of the organization, to ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders, to ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. Also financial managers ensure safety on investment making sure funds should be invested in safe ventures so that adequate rate of return can be achieved. Finally they also plan a sound capital structure. There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.…

    • 1163 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Economic Paper
    • 727 Words
    • 3 Pages

    Economic Paper

    Planning is used to determine the short term and long term objective of the organization, also to create plans for meeting any objective. A major goal for any financial planner manager would be to ensure the thought process of those involved in the strategic planning in order to ensure the understanding and support in every participant’s role in following through with the plan.…

    • 727 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Introduction To Financial Management
    • 1150 Words
    • 5 Pages

    Introduction To Financial Management

    Finance is the study of applying specific value to things individuals own to include services used and decisions determined [Finance by Cornett, M. M., Adair, T. A., & Nofsinger J. (2014). M: Finance (2nd ed.)]. In simple words, finance is how much value is attributable to goods and services and the basis of such attribution.…

    • 1150 Words
    • 5 Pages
    Good Essays
    Read More

Related Topics