Essays On Financial Planning

The Importance Of Financial Planning Essay

Throughout life we a faced with financial decisions. Much of the time we are unable to manage our funds the way that we would have liked. Successful financial planning allows you to have a clear prospective on your future financial needs. In order to gain the financial freedom of your desire you will need to start by reviewing your current situation. Like many others my finances are not what I?d like them to be. With everyday that passes I ask myself questions like , ? what if I lost my income ?. These are one of the many ? what if ? questions that I think of when I am managing my finances. I know that I must be prepared for anything that may happen to my financial status.

In order for me to figure out what my financial status is, I must first determine my financial situation. I need to keep in mind of any defined goals that I may have. Goals are great as long as I can provide for them. Reviewing how much money I have in assets and belongings gives me a better idea of how much money I am worth. Knowing when and how to spend and save is essential when planning your finances. Taking full responsibility for all of my financial decisions is the beginning of financial freedom. To know exactly how much money I am worth I must get into the details of my belongings and income. I know that I have a boat that is worth about three thousand dollars I also have three vehicles that are worth about two thousand dollars a piece. Now that I know how much money in assets that I have I need to figure out what my annual income is. Measuring the amount of money I earn and spend every year gives me a better idea on how to manage my funds. My annual earned income is about fifty...

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Importance of Strategic Planning Essay

787 words - 3 pages Strategic management is often known as the foundation of a company's mission and vision which allows an organization to prepare for unforeseen opportunities that may arise. Strategic management focuses on an organization's interest, and defines the way a business wants to expand (Verma, 2009).The small business I would like to start is a taxi cab service. The name of my small business will be Southern Cab Service. The organization will be...

The importance of Media Planning in the soft drinks sector

1839 words - 7 pages Soft Drinks Consumer insights in relation to media consumption Media Planner and Buyers are expected...

Importance of Strategic Planning and Management in the Business Environment

904 words - 4 pages Strategic Planning and Management PAGE \* MERGEFORMAT 1 Importance of Strategic Planning and Management in the Business EnvironmentnameBUS/475: Integrated Business TopicsDecember 2009instructorImportance of Strategic Planning and Management in the Business...

Importance of Strategic Planning and Management in the Business Environment

589 words - 2 pages The small business that I would like to start is a Pet Shop to sell and deliver small breed dogs, and to sell pet food, supplies and personalized gift baskets. The Pet shop will also provide its customers with small dog's spa, canine obedience training and routing vaccinations.Strategic Management and PlanningStrategic Management and Planning is a set of decisions and actions formulated to align people and resources together with the...

The Importance of Financial Management in Small Business

2795 words - 11 pages Running head: THE IMPORTANCE OF FINANCIAL MANAGEMENT IN SMALL BUSINESS PAGE \* MERGEFORMAT 1 The Importance of Financial Management in Small BusinessAbderrahim AouchiMaryam OihabiAbderazak OuassouTexas A&M UniversityAbstractThe purpose of this paper is to explore the automotive industry and to understand opportunities and barriers of starting a small auto parts retail...

What is the importance of the concept of the product cycle for business planning and budgeting?

1572 words - 6 pages INTRODUCTIONThe product cycle concept states that all products have a life span. Since the desirability and sales of a product changes at different stages of a product's life, product concept and strategy always need constant revision. Product cycle can apply to both a category of a product or a brand and underlines most business...

Explain the importance of business planning to the survival and growth

1657 words - 7 pages Explain the importance of business planning to the survival and growth of organisations. A business plan should always for a business start up, the use of the business plan should not stop there, and businesses should be planning constantly in order to run their business effectively and efficiently. Businesses have to think about how they are going to plan for survival or growth, therefore they need to do business planning, to help the...

Importance of Strategic Planning when Entering International Markets

2451 words - 10 pages Importance of Strategic Planning when Entering International Markets When a company decides to take their business international, there are many different factors that they need to take into account. There are differences in management styles, international laws and treaties that regulate international business, trade barriers, tariffs, taxes, exchange rates as well as cultural customs that come into play. Each of these is significant and...

The Cost of Poor Planning

792 words - 3 pages Every working person has spending habits, and an income. Unfortunately, these two things do not normally occur in people's lives in proportionate numbers. This often leads to large debt, and a long life filled with personal liability. Many Americans work hard only to spend more money, and increase their debt. They look forward to their next pay raise, or promotion, so they can earn more money, spend it, and subsequently go deeper into debt. ...

The Purpose of Financial Statements

1835 words - 7 pages The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four...

The Concept of Financial Intermediation

1073 words - 4 pages I. Introduction Financial intermediation is usually understood as a process of connecting lenders and borrowers, performed by banks and other intermediaries . It is a main basis of all financial systems, which are extremely important for capitalist economies. It allows banks to make profits and is one of the sources of economies’ well-being. Why is financial intermediation so important? Because it brings together economic agents with surplus who...

Financial Planning Essay

Financial planning links the goals a business wants to achieve in the future and the resources it will need to achieve these goals. It is also concerned with evaluating the financial resource of a business. Financial management is about setting the goals throughout the business and deciding what resources will be needed to achieve these goals. The main objective of financial management is to properly account for the income and expenditures of a business in order to maximize the value of that business to its owners. To achieve this manager's must balance the following objectives: Addressing the present financial position, determining the financial elements of the business plan, developing budgets estimating cash flows, preparing financial reports, interpreting financial reports, maintaining record systems, planning financial controls and minimizing financial risks and losses.
Funds are the money a business uses to finance its operations. There are two sources of funds: Internal, which includes owner’s equity and retained profits. External, which consist of short-term borrowing mainly overdrafts and bank bills and long-term borrowing, such as mortgages and debentures. The other main forms of financing are: Leasing, which includes operating leases, and finance leasing Factoring Venture Capital Grants In managing funds, a business will use a mix of debt finance and equity finance. There are costs, benefits and risks associated with both types of financing. Gearing is the proportion of debt finance to equity finance. The success of the level of gearing will depend on the circumstances, including the economic cycle.

The accounting framework is necessary for a business to be able to record its flows of revenue and expenditure accurately. The financial reports issued by the Australian businesses are general-purpose reports that meet the interests of users. The two basic financial reports are: Revenue Statement, which show income and expenditure and can be used to calculate profit. Balance Sheet, which presents details of a firms assets, liabilities, and owner’s equity at a given point in time. A fundamental element of the accounting framework is the accounting equation, which shows the relationship between the businesses assets and its liabilities. In this equation the amount of assets must equal to the sum of total liabilities and owners equity. Assets = Liabilities + Owners Equity Assets are the item of value possessed by a business. There are two groups of assets: Current Assets (short term, less then 12 months will be cash) Non-Current Assets (long term, more then 12 months to turn into cash) Equity is the ownership in a company. There are two main types of equity Owners equity, which is the money invested by the owner Shareholders Equity, which is the money invested by shareholders Financial ratio analysis is one of the most common methods of analysing and interpreting financial statements. Ratios on their own provide very little...

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Business Planning Paper, Create a business and outline the background, operations plan, marketing plan and financial plan

5139 words - 21 pages Untitled FINDERZKEEPERZ ...

Financial Planning in an Engineering Business

883 words - 4 pages 1 The International Standard Atmosphere (ISA) Mustafa Cavcar* Anadolu University, 26470 Eskisehir, Turkey Nomenclature a = speed of sound, m/sec g = acceleration of gravity, m/sec2 h = altitude, m or ft p = pressure, N/m2 or hPa R = real gas constant for air, 287.04 m2/°Ksec2 T =...

Planning in the UK

1161 words - 5 pages The range of planning powers, controls and policies should be reduced. Explain how one might agree and disagree with this statement. I will approach this title focusing on planning in the UK. First briefly defining powers, controls and policies as they are today. A quick historical review of the modern planning system and changes to it will help give context in deciding whether to increase or decrease them. I'll then move on to a discussion on...

fm as a profession

882 words - 4 pages Financial Management means the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized functions directly associated with the top management. The significance of this function is not only seen in the 'Line' but also in the capacity of 'Staff' in overall administration of a company. It has been defined differently by different experts in the field.It...

financial management as a profession

941 words - 4 pages INTRODUCTIONFinancial Management means the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized functions directly associated with the top management. The significance of this function is not only seen in the 'Line' but also in the capacity of 'Staff' in overall administration of a company. It has been defined differently by different experts in...

Planning in Today's World

650 words - 3 pages This article is about the impact that planning has on today's corporate society. The need for planning is often obvious and after the fact. This article examines the importance of planning in an organization and the important role it plays in the success in today's corporate world. The organizing, staffing, leading and controlling functions stem from the planning function (Higgins, 1994). Today's managers are often ready to organize and staff...

Amgen Inc Case Analysis

1773 words - 7 pages Amgen Inc Case Analysis The biotech firm Amgen Inc. gives much attention and time to the planning process. Because the outcomes for a company like Amgen are often very unsure and many employees are quite sceptical about the use of such a planning, the main issue can be described as follows: What is the added value of planning for a fast-growing company in an uncertain and dynamic environment? To address this issue, an analysis will...

Q. Discuss whether Strategic Planning is worthwhile for small firms or not

1238 words - 5 pages Before I discuss whether Strategic Planning is worthwhile for small firms or not, I would like to briefly explain what strategic planning is.Various definitions of strategic planning have been offered in the literature. However, defining strategic planning remains a problem because it can be defined in many ways depending on the size and nature of...

Strategic Planning Within General Electric

901 words - 4 pages The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to...

Management: Planning Function

3240 words - 13 pages Management: Planning Function Planning is a major function of management. Planning may be the most important of all management functions. Planning involves a six-step process that assists an organization in setting goals and determining how to accomplish them best (Allen, 1998). “Effective planning helps...

Management Planning at Temasek Holdings

1350 words - 5 pages Management Planning in Business 1.0 Introduction: A current issue in the world of management which has become increasingly problematic over time is the amount of management planning needed due to the fact that management planning factors have been increasing over the past decade. According to Pat Moore, “In the last few years we have seen the contingency planning process progress from earlier issues of addressing primarily information...

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