2. • Short Term FP
• Health Care Models
Objectives
• Long Term FP
• Financial Process & Concepts
3. • FP Process
• Short Term FP
• Health Care Models
Objectives
• Long Term FP
• Planning means looking ahead and
chalking out future courses of action to
be followed
• Examples:
• - Preparation for competitive exams
• - PlanED/
5. Financial Planning
It is a forward looking
document, taking into
consideration your needs,
goals and requirements
based on certain
assumptions.
A continuous process
driven to reflect the
necessary changes at the
micro and macro level.
6. Why Planning?
• Thornton Inc. was an
American oil & natural gas
company based in California.
It was formed by Keith
Walker after several years of
experience in the field of oil,
natural gas and energy.
• Thornton Inc. grew into a
giant business in just 15
years to become America's
seventh largest company.
However, in reality, the firm's
success turned out to have
involved an elaborate scam.
7. Cash Flow Planning
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Sources
of Cash
Uses of
Cash
Change
in Cash
Balance
8. Cash Flow Planning
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
•Inflow and outflow of
money
•The base of any financial
plan is a cash flow
projection
•Cash flows mirror your
financial future
9. Short Term Cash Planning – Tools
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Sales Projections
Purchase Projections
Wages Projections
Cash Budget
10. FP – Risk Planning
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Identifying the shortfalls
Insurance and health plans
Risk Averse
Moderate
11. FP – Investment Planning
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Asset allocation Planning
Periodic reviews to
incorporate necessary
changes
12. FP – Tax Planning
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Tax Planning
Contingency Planning
13. FP – The Financial Planning activity
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Assess the business environment
Confirm the business vision
Identify the types of resources
Quantify the amount of resource
(labor, equipment, materials)
Calculate the total cost
Create a budget
Identify any risks and issues with
the budget set.
14. FP - Process
Develop financial projections
Raise the fund
Plan for contingencies
Identify your Financial Situation & Determine Financial
Goals
Monitor & Control
15. Financial Management in Healthcare
• Thornton Inc. became the synonym of the
word ‘scandal’ when its large-scale scandal
shook the corporate world. Thornton’s
Scandal came to light in November 2003.
• Thornton was involved in the use of
accounting loopholes, special purpose
entities, and poor financial reporting and
was able to hide billions of dollars in debt
from failed deals and projects.
Careful Evaluation and Planning
Generating Income
Protecting Tax Status
Monitoring Internal Spending
Influencing Third-Party Payers
Long-Term Investment Decisions
Financing
Working Capital Management
Contract Management
Financial Risk Management
