Chapter 6   FinancialChapter 6   planningChapter 6   

Financial planning is a fairly general term which covers a range of different activities, from the initial estimating of resource requirements and associated costs, forecasting sales revenue, identifying ongoing operating costs and preparing the budgetary plans which combine the former information. It also involves cash flow forecasting to ensure that there are no gaps between income and expenditure, analysing breakeven levels and forecasting profits.

It is because the process draws together all of the other aspects of planning the business, and then expressing those plans in monetary form, that it is so important to prepare correctly, as it is the primary point of interest for bankers ...

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