FINANCIAL PLAN

FINANCIAL PLAN

         Financial planning is the strategic set of intended actions which have goals regarding management of money on certain objectives in a certain period of time (Mak, 2014) .It involves the comparison of present assets and the total expenditure and the future income it will generate.The key thing in financial planning is to understand the expindeture of every cash and that the cash can be well accounted for.Companies need to embrace financial management to understand their markets and prevent finances being poorly spent.In companies assets and liabilities are well defined after a financial plan is done.A continuous financial plan is important in companies and enables the company management to have a clear view of the profits or losses made in a period of time.Hence a company is able to well define its impact on the society.

A plan is also very important at personal level.One who engages himself or herself in financial planning is able to have a good account of personal funds.Moreover,future plans on finances become easy to be met since even savings are easily met.Emergency strategies are well accounted for without having financial constrains.Personally I have a financial plan that helps me to manage my financies.Each an every coin is well accounted for.It aids in purchasing items that were not initially planned and thus money crisis becomes an easier way to solve.

Financial planners  have six strategies that are key in financial management.The strategies work hand in hand to ensure quality performances especially in companies.The strategies are well explained in this paper.

Firstly proper financial planning is essential.Financial planning should be done in guidance with the assests and liabilities in hand.Aside that there will be a challenge in getting a good plan.A company should first list the finances and  assests they have and figure out a plan.Opportunity cost if need be may apply so that there would be less finances used but quality and good products are produced.A proper plan makes a company to have  future consideration that are short term and long term  should be well indicated .Failure to proper planning the company has threats of being in massive losses or else finances are used for the wrong intentions.

Secondly prior financial planning should be put into consideration.Financial planning should be done before any activity in a company.Prior planning helps a company understand the challenges likely  to face in the future.Therefore, a company is able to eradicate the challenges likely to occur.The company is able to figure out the expections  of the business and nothing is done blindly every plan has aprepared outcome.If the company fails to tackle prior planning challenges faced in the near future highly affect the company and progress of the company is deterred.

Planning is a very crucial in financial management.Every event should should be done after consultation with the authority.Money in a company should used with the knowledge of all stake holders.Planning makes a company to understand the way to handle situations in a company.Companies  are able to survive in monopoly market and also in times of stiff competition.Failure to planning leads to a company failing in its obligation and poor services to the market.

Prevention is a positive impact to financial planning.Prevention of corruption in the company is a major strategy .Most companies are faced with a challenge of corruption.Prevention of such challenges in financial planning helps the company to maintain itself in the market.Financial statements should be well recorded in the company to enhance positivity and incase of corruption issues the company has evidence for that.If the company ignores prevention measures resources in the company may be used for personal gains and thus a great loss occurs to the company.

Poor planning is a menace to the company.Poor resources are used by the company if poor planning is done.The company looses its potential market and its reputation is lost. This leads to poor governace of the company.The management therefore may take advantage and benefit from the poor strategy.Shame on a well established company may occur due to poor planning .Planning should therefore be done carefully and in a strategic way.

Lastly performance should be well done in a company.Performance of employees and major stake holders in a company may not come to pass even after planning is done.What is planned in a  company should be adhered to.In performance the employees are paid their salaries in time and thus they get an intrinsic motivation to work in the company. Failure to this may lead to poor delivery of services in a company.Performance that is progressed well leads to a company expansion and growing to greater heights.Hence performance strategy in financial planning is   very crucial in a company.

In conclusion the six important financial