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Financial PlanningThe Finance Manager has to estimate the financial requirements of the company. He should determine the sources from which capital can be raised and determine how effectively and judiciously these funds are put into use so that repayments can be done in time. Financial planning is deciding in advance the course of action for future. Financial planning includes: Estimation of the amount of funds to be raised, finding out the various sources of capital and the securities offered against the money so received and laying down policies to administer the usage of funds in the most appropriate way. Estimate capital requirements: This is the first step in financial planning. The following factors may be used to determine the capital: o Requirement of fixed assets. o Investment intangible assets like patents, copyrights, etc. o Amount required for current assets like stocks, cash, bank balances, etc. o Cost of set-up and likely expenses to be incurred on the new issue of shares and debentures. Determine the type of sources to be acquired and their proportion: The Finance Manager has to decide on the form in which the money is to be sourced, that is, debt, equity, preference shares, loans from banks and the proportion in which these are to be procured. Steps in Financial Planning: The financial planning process involves the following steps: # Projection of financial statements Financial statements are the company's profit and loss account and the balance sheet. These two statements can be prepared for a certain period of future time and they help the manager to determine the amount of fund requirements. # Determination of funds needed: Once the projections are drawn in terms of sales of products, the cost of production, marketing activities, etc., the Finance Manager can draw up a plan as to the fund requirement based on the time factor. He can know whether the funds are to be procured on a short term basis or on a long term basis. # Forecast the availability of funds A company will have a steady flow of funds. If the manager is able to forecast these amounts properly, then the moneys to be borrowed can be reduced, thus saving on the interest payments. # Establish and maintain control system: Control system is ineffective without adequate planning and the adequacy of planning can be gauged only through proper control measures. Both these activities are essential for effective utilization of funds. # Develop procedures: Procedures should be developed for basic plans how they should be achieved.
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What are the steps involved in planning database files?
There are five steps to planning database files. These steps are collecting information, determining objects, modeling said objects, determining every object's information, and determining the relationships the objects have with one another.
What is the steps to prepare consolidared financial statements?
Prfit and lost
1 List four essential steps involved in the budgetary control function?
1. Predicting the effect of planning decisions on profit 2. Recording actual performance 3. Comparison of actual or budget performances 4. Management action as a consequence o the above
GFEBS Name the steps of the Army's Cost Management process?
Cost Accounting, Cost Analysis, Cost Controlling and Cost Planning
How would you describe the accounting cycle?
must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle.
What are the steps in personal financial planning?
The first steps in personal financial planning is to step back and assess your situation. Start figuring out what your expenses are what you take in from work. Hopefully, you are bring in more than what you are spending.
What are the first steps in personal financial planning?
The first steps in personal financial planning is to step back and assess your situation. Start figuring out what your expenses are what you take in from work. Hopefully, you are bring in more than what you are spending.
Preparing personal financial statements is part of which of the five steps of the financial planning process?
B. Analyse your current financial position
What is the concept of business financial planning about?
The concept of business financial planning is basically to see what steps to take to achieve financial success. A company needs to have a solid plan on purchasing and selling their product.
What are the steps involved in planning database files?
There are five steps to planning database files. These steps are collecting information, determining objects, modeling said objects, determining every object's information, and determining the relationships the objects have with one another.
Explain the seven steps of social planning process?
The seven steps to successful planning includes outlining the project and listing the deliverables. The remaining five steps are establish deadlines, create a budget, reporting guidelines, and identifying risks involved.
What are major steps in planning?
major steps in planning
How can financial planning lead to financial performance or success?
For individuals and institutions financial planning instills discipline with the finances of the entity and ensures commitment to the financial objectives of that entity. Financial planning gives you the opportunity to sit down and look at every source and potential use of funds, so you can decide how best to take advantage of the relationships that exist between them to meet your needs. This is more likely to produce positive results than looking at each item independently of the others. On that note, I can say that just about everyone uses financial planning, and the many steps involved in it such as forecasting and budgeting. Just because you haven't got one written down yet doesn't mean you haven't got one or fail to see the need for one.
What are some estate planning steps that can ease financial burdens following the death of a loved one?
Some estate planning steps that can ease financial burdens after the death of a loved one are making sure your will is current, and check bank accounts and investment statements to be sure their is a transfer on death designation. Also make sure you have life insurance.
What steps are involved in debt recovery?
One can recover from debt by well planning your financial spending, Stop unnecessary spending on things which are not very important at present. Start saving and you can even think of a debt reduction program.Answer{| |- | One can recover from debt by well planning your financial spending, Stop unnecessary spending on things which are not very important at present. Start saving and you can even think of a debt reduction program. You can try BillsIQ tool to check your financial health.|}
Steps of micro human resource planning?
steps of human resource planning
5 steps in Personal Financial Planning process?
1. Discovery 2. Analyze 3. Recommend 4. Implement 5. Monitor
