Typically, financial planner come with perfect solutions for financial planning and control notes and also financial planning and control process flow chart. Occasionally there are some different aspects with management. Mostly they are focus is actually reducing costs instead of budget management. Hardly we must have noticed that they consider to focus on financial control. It is obvious that we are definitely live in age of financial planning and controlling. Whether it is a student, small-business owner, industrialist or large company has roles and responsibility in order to financial planning and control is everyday life strategies therefore it is an essential factor in business finance as well as personal finance.
Financial Planning and Control Definition:
Financial planning and control defines as a combination of strategies it supports the entire financial management process for an organization. The process begins at financial planning, many times in the form of cash flow and forecasting balance sheet. This information will be use of various reasons, in order to calculate your business ratios and financial indicators as a basis for the calculation otherwise in order to illustrate risk calculation or repayment purposes. Financial planning and control definition by different authors are:
In accordance to Ekweueme P. “Finance is that art as well as science of managing money, its concerned with each process, market, organizations and instrument involved in transfer of cash among as well as in between government and business.”
In accordance to Orji J. “finance function deals with increasing of investment and investing inside assets.” He gone even more towards saying that financial management that management task is focused on financial planning and controlling of the businesses financial resource.
In a global competitive world where the key factors are definitely price turnover, profits, costs, financial planning and control permit each and every person to have a sound knowledge associated with financial implication concerning finance plan, actions and control can be used to any kind and any size of business. As tool concerning management, it increases that effectiveness associated with the company and all the departments are involved. That effectiveness and efficiency of any organization or a company depend on a number of factors which may be classified like functions, communication, financial planning and control and management planning. There’s need to have a proper understanding of the objectives of the company otherwise it’s difficult to identify goals and set achievable targets for your goals.
Financial Planning and Control Process Flow Chart:
Here we have presented an ideal financial planning and control process flow chart which a financial manager should undergo with. Typically, financial planning and control process flow goes through following steps:
- Listening: Focusing towards goals, desires and dreams of a company.
- Analysis Information: To perform data analysis for prepare a plan.
- Planning: Create a plan which will best suit for your client requirements.
- Implementation: Design strategies, methods and implementation of investment plan for a company.
- Control & Monitoring: Keep periodically check whether the designed techniques worked well for an organization or need further improvements.
Importance of Financial Planning and Control:
One field that requires increased attention and understanding is precautionary financial planning and controlling processes. Many entrust their administrative as well as sinking fund money towards financial managers along with little or no investigation into the way regarding how financial supervisor handles financial planning and controlling internally. Here are listed out some of the key importance of financial planning and control within a management of an organization. They are:
1. Segregation of Tasks and Duties:
When dividing responsibilities anywhere between people increases the risk of protection against errors, fraud, oversights, etc. For example, if someone reports cash received as well as then you check bank statements, it becomes smoother towards detect dishonesty. Segregation of tasks and duties is among the importance of financial planning and control for robust environment.
2. Qualification of Advisors and Employee:
An organization must promise that your financial managers and advisory team are enough competent. Also they should be properly trained with their task for financial planning and control of an organization.
3. External Audits and Review:
Certain organizations have always been legislatively forced to need audits prepared every year, other companies have a concerns for performing external reviews and external audits. Often those who have concerns regarding not to have externally audits performed. It is seriously advised to those who have concerns should discourage their thoughts. Provided costs are an issue, then maybe you can choose to go for external audit atleast once in three years.
Financial Planning and Control Problems:
In spite of all write-up all the financial planning and control notes concerning that increasing investment, raising funds and utilization of those funds. Most business then again need additional funds to make their goals achievable. When performing research, you will need to respond to financial planning and control problems regarding:
- What things impacted that implementation of financial planning to control program at the business?
- Do you might think that the investment supervisor or manager has effective performed their work? If no, then does it affect financial planning and control within a company.
- What other various type of financial planning and controlling should be used exactly? and how effective that will control it?
The significance of this research will certainly lead you into the development of techniques, methods, strategies for financial planning and control to assist management in making related rules, principles, polices. Creating policies and rules can create an opportunity for an organization to obtain the maximum revenue that is beneficial to that shareholders, future project writers, employees and company at large.
Read Free Tutorial Course - Financial Planning Basics For Beginners
» e-Learning Chapter 1: What is Financial Planning with Examples
» e-Learning Chapter 2: Different Types of Financial Planning Models and Strategies
» e-Learning Chapter 3: Importance of Financial Planning
» e-Learning Chapter 4: Personal Financial Planning Process
» e-Learning Chapter 5: Benefits of Financial Planning
» e-Learning Chapter 6: Financial Planning Process with Examples
» e-Learning Chapter 7: Objectives of Financial Planning
» e-Learning Chapter 8: Limitations of Financial Planning
» Currently Reading: Financial Planning and Control
» e-Learning Chapter 10: Financial Planning and Analysis
» e-Learning Chapter 11: Determine Financial Goals – Assessment, Budgeting and Goal Setting
» e-Learning Chapter 12: What is Optimism Bias – Definition, Effects on Financial Decisions
» e-Learning Chapter 13: What is Personal Financial Planning? Definition, Examples and Template
» e-Learning Chapter 14: What is Business Financial Planning? Definition, Examples and Process
» e-Learning Chapter 15: What is Financial Planner? Definition, Scope and How to Become a Financial Planner
» e-Learning Chapter 16: Your Rights and Responsibilities as a Financial Planning Client
» e-Learning Chapter 17: Strategic Planning and Execution of Financial Plan
» e-Learning Chapter 18: Financial Backup Plan or Emergency Financial Assistance
» e-Learning Chapter 19: Top 10 Worst Financial Mistakes to Avoid or Common Errors in Financial Planning
» e-Learning Chapter 20: Financial Planning Quiz - Basics of Financial Planning Question and Answers