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What are the steps involved in financial planning?

      

What are the steps involved in financial planning?

  

Answers


Ruth
Developing financial plan for a company is like developing a personal financial plan. One
must figure out how much money is needed, when money is need and where it will come
from.

The process consists of five basic steps:
1. Estimating the month-by-month flow of funds out of the business, including both operating expenses and capital investments
2. Estimate the month-by-month flow of funds into the business from all sources
3. Compare inflows and outflows. If surplus funds exist, determine how to use those
funds most productively. If funding falls short, find ways to reduce outflows and increase inflows
4. If outside funding will be required, analyze alternative sources and select the most
cost effective combination
5. Establish a system for tracking the flow of funds and measuring the return on
investment
NatalieR answered the question on June 17, 2022 at 10:38


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