What are some great tips for financial planning?

 

Six Step in Financial Planning Process

 

1. DEFINING THE SCOPE OF THE PLAN

   (Here we describe the purpose of Financial Planning)

2. IDENTIFYING YOUR GOALS

3. ASSESSING YOUR FINANCIAL SITUATION

4. PREPARING YOUR FINANCIAL PLAN

5. IMPLEMENTING THE RECOMMENDATIONS

6. REVIEWING THE PLAN

 

The great tips for the financials planing are the following:

1. The full suport of the senior management.
2. Preparing the SWOT analysis to highlights the internal strengths and weaknesses, and the external opportunities and threats. Plus identifying the constraining resources.
3. Identify the strategic gools for the company for the next5 years.
4. Identify the tactic tools and plan that will be used in order to achieve the strategic gools.
5. Identify the targets for the current year in terms of net profit, cash flow and capital expenditures.
6. Agree on the selling prices, margin to customers and marketing activities,
7. Provide for the sals forecast.
8. Provide for the raw material prices and the expectations for the flactuation in prices.
9. Provide for the operating expenses per department.
10. Preparation of the master budget (production budget, sales budget, cash flow budget, budgeted profit & loss aaccount, an the balance sheet budget).  

Although there are many tips for the financial planning, but I believe that the below are the main tips from my point of view:
1- Identify your resources and targets.
2- Prepare your budget.
3- Work as per the budget.
4- Make a reasonable investments.
5- Maximize the performance of your resources (assets).
6- Feedback review and evaluation.
7- Make the necessary corrective actions.