2. All individuals, professionals, businessmen will have their goals
to be in profession or business. However, about objectives at business
finance, we have to plan them. You should know how you can save a lot,
you must know your goals. Here is the step by step financial planning
process which includes six steps in financial planning process which will
assist you. You should be aware of the life cycle approach of financial
planning process to structure your goals.
The long-term goals that you plan to achieve in the future, play
an important role in everyday life as you already have in mind a set of
plans for the next five years. If you are not yet sure what you want in five
years from now will probably still have an idea of what kind of life you
want. You are still in the process of planning.
Planning is an important aspect of the firm’s operations because
it provides road maps for guiding, coordinating, and controlling the firm’s
actions to achieve its objectives. Management planning is about setting
the goals of the organization and identifying ways on how to achieve them.
3. Long-term financial plans or the strategic plans are a set of
goals that lay out the overall direction of the company. A long-term
financial plan is an integrated strategy that takes into account various
departments such as sales, production, marketing, and operations for
the purpose of guiding these departments towards strategic goals. Those
long-term plans consider proposed outlays for fixed assets, research and
development activities, marketing and product development actions,
capital structure, and major sources of financing. It also include would
be termination of existing projects, product lines, or lines of business;
repayment or retirement of outstanding debts; and any planned
acquisitions.
4. Short-term financial plans or the tactical plans specify short-term
financial actions and the anticipated impact of those actions. Part of
short term financial plans include setting the sales forecast and other
forms of operating and financial data. This would then translate into
operating budgets, the cash budget, and pro forma financial statements.
5. FINANCIAL PLANNING PROCESS
Step 1: Determine Your Current Financial Situation
Step 2: Develop Financial Goals
Step 3: Identify Alternative Courses of Action
Step 4: Evaluate Alternatives You need
Step 5: Create and Implement a Financial Action Plan
Step 6: Re-evaluate and Revise Your Plan
