Financial Planning

monetary resources ar those resources that have monetary value fiscal management is the planning and supervise of an brasss pecuniary resources to enable the organization to achieve its financial goals Assets are the property and other items of the transaction both tangible and intangible. Objectives of financial management: Liquidity - business leader to pay short-term debts. Profitability - maximizing win Efficiency - ability to maximize profits with minimal resources development - increase size in the longer term cede on Owners equity - percentage of profit compared with get along invested.

The Plannin g Cycle Address current financial bureau Determine financial elements of business plan Develop budgets oversee property flow Interpret financial reports Maintain take system Planning financial controls Minimizing financial risk and losings Major participants in financial markets brims Finance/insurance companies merchandiser banks RBA Super funds Mutual funds Public/ unavowed companies ASX Sources of funds Internal sources - Owners integrity - Retained profits Advantages - emit gearing - little risk Disadvantages Lower profits and sideboard on OE External sources o         Short-term §         Overdraft §         Bridging finance §         Bank bills o         Long-term §         Bonds §         Mortgage §         Term loans §         Leasing §         Factoring §          craft credit §         Ventur e capital Advantages Increased funds reven! ue deduction on interest repayments Disadvantages Increased risk shelter required Regular repayments Lenders have introductory claim on money if they go bankrupt Leverage measures the relationship among debt and equity The accounting framework Raw info Processed Data Accounting Data Analysis of report Financial Statements §          tax revenue statement - shows revenue earned and expenses incurred everywhere the accounting period. §          proportionality Sheet - shows the businesses assets and liabilities at a rate in time. Financial Ratios 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 abounding essay, order it on our website: BestEssayCheap.com

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