Financial Planning

Financial resources ar those resources that have monetary value Financial management is the planning and supervise of an governments pecuniary resources to enable the organization to achieve its monetary goals Assets be the property and other items of the patronage both tangible and intangible. Objectives of fiscal management: Liquidity - business draw to pay short-term debts. Profitability - maximise arrive ats Efficiency - ability to maximize win with minimal resources Growth - increase coat in the longer term Return on Owners Equity - percentage of profit compared with masturbate along invested.

The training Cycle Address current monetary position Determine pecuniary elements of business plan Develop budgets Monitor property flow Interpret financial reports Maintain record system Planning financial controls Minimizing financial risk and losses Major participants in financial markets b methodicalnesss Finance/insurance companies Merchant banks RBA Super funds Mutual funds Public/private companies ASX Sources of funds Internal sources - Owners integrity - contain profits Advantages - Low gearing - little risk Disadvantages Lower profits and return on OE External sources o         Short-term §         Overdraft §         Bridging finance §         Bank bills o         Long-term §         Bonds §         Mortgage §         Term loans §         Leasing §         Factoring §          craftsmanship credit §          casualty capital Advantages Increased funds Tax deduction on elicit repayments Disadvantages Increased risk Security required Regular repayments Lenders have introductory aver on money if they go bankrupt Leverage measures the relationship among debt and equity The accounting framework Raw Data Processed Data Accounting Data Analysis of report Financial Statements §          tax statement - shows revenue earn and expenses incurred everywhere the accounting period. §          rest Sheet - shows the businesses assets and liabilities at a rate in time. Financial dimensions Liquidity Current Ratio = Current assets (working k)         Current liabilities                  2:1 safe position Solvency Debt to equity = Total liabilities                   Owners Equity Profitability Gross Profit... If you want to get a full essay, order it on our website: Ordercustompaper.com

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