BUDGETING AND

CASH FLOW
PLANNING
PRESENTED BY: GROUP 4
DEFINITION
BUDGETING:
A financial plan that forecasts
individual and business revenue
and expenditures for a specific
period of time.
CASH FLOW PLANNING:
The process of establishing an
elaborate budget and a broad
financial plan to help everyone
manage their revenue, expenses,
and investments.
DEFINITION
The budgeting and cash flow planning are
complementary with each other. Budgeting sets you as
a guide, and cash flow planning is ensuring that
there is a smooth flow of resources. Combining
these two tools, it will acquire an effective hold in the
finances, make more informed financial decisions
 APPLICATIONS

PERFORMANCE PROVIDE SPENDING

PROVIDE GOALS
BENCHMARK GUIDELINES
It serves as a benchmark This will ensure that the goals This ensures that the
of the company in which it and objectives of sales resources are well utilized
will raise or make a personnel are aligned with and control the expenses
standard to the the financial objectives of the that will help maintain a long
performance of the company that will help term growth to the company.
company to investment or increase a sustainable and
to what a company can be profitable growth.
measured.
MECHANICS OR PROCEDURES
1. GATHERING FINANCIAL INFORMATION
2. SETTING FINANCIAL GOALS
3. ASSESSMENT OF FINANCIAL SITUATION - INCOME AND EXPENSES
4. IDENTIFYING AREAS OF IMPROVEMENT
5. CASH FLOW ANALYSIS
6. DEBT MANAGEMENT
7. EMERGENCY FUND PLANNING
8. RETIREMENT PLANNING
9. CREATING A BUDGET
10.REGULAR REVIEW AND ASSESSMENT
 MANAGING CLIENT EXPECTATIONS

CHALLENGES For starters, clients are often not financial professionals.

AND ISSUES
They are unaware of general global markets outside of
what headlines they may scan.

CHANGING FINANCIAL GOALS AND PRIORITIES

Clients' financial goals and priorities may change over time
due to life events, economic conditions, or personal
circumstances.

VOLATILITY IN INCOME AND EXPENSES

Clients with irregular income streams or fluctuating
expenses may find it challenging to create stable budgets
and cash flow plans.
 COMPLEX FINANCIAL SITUATIONS
Clients with complex financial situations, such as business
owners, high-net-worth individuals, or individuals with

CHALLENGES multiple income sources, may require more sophisticated

budgeting and cash flow strategies.

AND ISSUES TAX CONSIDERATIONS

Tax laws present a significant challenge for financial
planners in budgeting and cash flow planning due to their
complexity, variability, and impact on clients' financial well-
being making it challenging for financial advisers to stay
updated with the latest regulations.

COMMUNICATION AND EDUCATION

Educating and communicating with clients about
budgeting and cash flow requires patience, empathy, and
a willingness to adapt to each client's unique needs and
circumstances.