Its purpose is to show the future of your business at the end of a certain period. As a rule, this is a year. This document includes the projected sales revenue and expenses required to make these sales. The output is the planned net profit figure. This will be your guide. Looking at it, you will see what profit you can expect by the end of the year.
The importance of this document is
Difficult to overestimate, since it will reveal the truth about your business. After all, at the beginning, an entrepreneur, opening a store, dreams of a new apartment or house, a new car and travel. And when this does not appear, he wonders – why is this? So that there are no such unjustified expectations, there is financial planning. Of course, this is not the only reason why it is important to be able to draw up a Pension Fund, but even if you do something like this – you are already ahead of your competitors.
The next thing you need in financial management is a Money Movement Plan.
This document is needed sweden telegram data to avoid “cash gaps” during your activities – a situation when there is not enough money in your current accounts and in the cash register to pay current bills. That is, this document allows you to balance the receipt of money and its expenditure. I will reveal such a secret – until you have eliminated all “cash gaps” it is useless to increase profits.
And the third point in financial management is the current account balance.
Not an accounting one, but a settlement one, yours as a manager. In this document, you collect data on the balance of goods in the warehouse, cash in the cash register and in the current account (these will be your assets), and your obligations – loans, debts to suppliers, etc. (liabilities). The difference between these figures shows the financial stability of your business.
Of course, I have not given here all the points in financial management, but even having started to apply these, you will be several steps ahead of your china leads competitors. Ideally, of course, to have ready-made templates for financial management, since simply by inserting your numbers there you will immediately receive all to begin with a financial results plan (frp) is drawn up. the necessary information for making management decisions.