Financial Planing .December 24, 2020
In general usage, a financial plan is a comprehensive evaluation of an individual’s current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.A financial plan is sometimes referred to as an investment plan, but in personal finance a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.
Context Of Business
In business, a financial plan can refer to the three primary financial statements (balance sheet, income statement, and cash flow statement) created within a business plan. Financial forecast or financial plan can also refer to an annual projection of income and expenses for a company, division or department.A financial plan can also be an estimation of cash needs and a decision on how to raise the cash, such as through borrowing or issuing additional shares in a company.
What is a financial plan for a business :
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. … The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.
What are the six components of financial planning :
Major key elements are Cash-flow management, Investment management, Tax planning, Insurance assessment, Retirement planning and Estate planning.
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