Presentation on Financial Planning

By, Aditya Tambe Mayur Upasani Ninaad Kulkarni MBA II Div-A

Financial Planning

What is Financial Planning?

A financial plan can be a budget, a plan for spending and saving future income. This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and longterm savings. A financial plan can also be an investment plan, which allocates savings to various assets or projects expected to produce future income, such as a new business or product line, shares in an existing business, or real estate.

Elements of Financial Plan

Sales Forecast
Starting point of preparation of the financial plan Short term, Medium term, Long term Accuracy of financial plan Depends on accuracy of Sales forecast Different Methods of sales Forecast  Analysis of past sales  Market research method  Estimates of sales force  Expert s judgment  Test marketing results  Time series projection  Quantitative methods

Projected Profit And Loss Account

A projected profit and loss statement is a financial document that reflects the amount of profit or loss you expect your business to generate in future periods Methods for preparation  Percentage of sales methodExpected sales for the future  Budgeted expenses methodsEstimate of all items of expenses  Combination method-Combination of both the above methods that is expected sales and expected expenses for a particular future time

Projected Balance sheet

Various items of assets and liabilities are estimated

Cash Budget