Financial Planning For The Growth And Development Of A Company

Financial planning for the growth and development of a company

Financial planning allows you to see, organize and analyze all the operations used for the growth of a company. This implies employment in projections and development of an adjustment process to increase performance. There are positive and negative results, these are obtained in the projection of all the elements that reflect a statement of budgeted result.

This deals with a field for some financial and economic decision making, so it is essential that engineers. In order to establish in a company, forecast, economic and financial goals to achieve taking into account the means that are required and what is required to achieve it, is a more important tool than how much to the modern administration to carry out its objectives to carrycarried out the financial function through a budgeted and see all the needs that a company entails to be able to carry a good financial planning. This is carried in the industry and to each company that opens.

On the other hand, globalization has allowed the way companies do their businesses in the world, with which companies have the intention of developing the strategic planning of companies.

The financial planning that every company should formulate of including each of these variables and the impact on an operation of all companies is to establish the objectives in an appropriate and viable way so that with this develop the appropriate strategies and plans to achieve a company with theDesirable requirements.

Developing

For the development of financial planning in industrial engineering, it basically develops throughout the industrial area, where there are budgets, market value, cash flows etc.

This leads to a process of preparing a comprehensive, organized, detailed and personalized financial plan that can guarantee financial objectives. This leads to the ability to analyze, design and manage investment projects;Encourage the creation of productive entities of goods and services, participate in projects for transfer, development and adaptation of technologies in productive systems, participate in the decision -making for the transfer and adaptation of productive systems.

In this we will understand some stages that include: the elaboration of the financial budget, that is to say the identification of different items necessary to achieve results.

Financial planning has been developed and determined in the management of economic resources, since the objectives set are achieved, however this is one of the elements that are least implemented in money management, that is why it is not interested in addressing the issueof the importance of financial planning for any decision making, this can identify the way it affects positively on different actions.

Financial planning

The financial planning applied in the industrial engineer writes different ways of applying, although it is the basis of every company, where balances, costs, flows are seen. Income, market, etc. It is commonly assumed to the main objective of the financial administration that lies the maximization of profits, by definition to this applies within a company where it consists of planning economic resources, to define and determine which are the most convenient sources of money forthat these resources are applied.

Financial planning influences the company’s operations because it facilitates routes that coordinate and control the actions to achieve their organizational objectives. Two aspects of financial planning are cash planning and utilities planning. Cash planning implies the elaboration of the company’s cash budget. Profits planning implies the elaboration of Proform states. Both the cash budget and the proforma states are useful for internal financial planning;In addition, existing and potential lenders always demand it, all this is related by the need to evaluate satisfactory results in financial planning, all this takes as the basis and norms in the disheveled of a feedback and adjustment process to increase performance, stopAll this and there can be a good financial plan, it is necessary that there be a good general plan and for the company, have both the quality of plan and financial budgets. In a company’s financial plan establishes financial and strategic goals to be ableFinancial terms, strategic and operating plans finished.

The importance of financial planning in engineering is from the analysis of threats, opportunities, strengths and weaknesses that the company has to develop and its interaction with the environment, among the objectives that a company can set to set a company can be:

• Follow a constant sale scheme in revenues -to support the company’s number
• Expand of customers number
• Increase the product.

Every company has a balance sheet that calls for the balance of the financial statements.

Another point would be that within the diverse amount of work that financial management implies, financial planning acquires high relevance, even from the initial pregnancy stages of a business project. It is an exercise that should not be oblivious to any manager or manager, much less to the company’s owner, who is the most interest in managing his future generation of wealth and sacrificing the needs in matters of total numbers and profits

Understanding the concept in its most simpe form, financial planning is nothing more than a “roadmap” that supports the organization’s executives, to be clear about the goals they must achieve and the path they must follow to get tothey. The macro objective is always related to achieving greater long -term returns and numbers

In its construction, it makes evident the requirements involved in the achievement of the objectives set, such as the establishment of higher sales goals, greater control of costs and expenses, linking new personnel, acquisition of new equipment;And this in turn allows identifying the company’s capabilities to overcome these requirements in a self-sufficient way or through new sources of financing.

All this leads to this financial planning and financial control of expenses and income are the starting point of business projections and objectives. All this is done thanks to the combination of the projects of all operational budgets.

Once the expenses and income at the business level have been identified and analyzed, as well as the results and balance sheets of business projections and objectives, these are compared with the real states of the company’s accounts. This will help maintain real financial control in which the causes of possible deviations are identified and indicated, helping to control and correct the possible problems that may appear during the process and adjusting the real projections and objectives for the budgetary period in whichFind.

To end this there is nothing more to say that to carry out a good planning is to have good profits, good profitability to have capital to support all kinds of situations that can be generated. On the other hand, the importance of industrial engineering in financial planning is important.

Every company needs some steps to implement a good financial planning.

Define clear and precise objectives, establish what are those things that are achieved and that this is the financial planning basis, evaluate its financial reality, establish a strategy and execute a plan.

conclusion

In conclusion it is important to point out that financial planning, from my point of view it is the most important moment of which companies seek to carry out satisfactory financial planning.

The above is fully sustainable, because these documents invariably present the figures that the financial situation states and the results states will contain to the passage of a certain period of time, taking into consideration the realization of certain events that ordinarily or in an extraordinary wayThey will present during the company’s operations.

The information that the budgets reveal, from any variable that are presented, is that they offer valuable elements that will allow shareholders.

However, despite the fact that this objective is fundamental, it is alsoView of the projection itself, but also reflect the policies and strategies to follow to achieve the objectives.