Daily Archives: February 7, 2019

How to Do the Financial Planning Of Your Company?





Achieving a goal or meeting a goal becomes much more feasible when good planning and strategy definition is done earlier.

When it comes to the performance of a company and its financial results , the story is no different. Those who want to maintain a sustainable business with possibilities for investment and growth in the future, need to make a financial planning and stick to it to achieve their goals.

Although discipline and organization pose a challenge for the manager, some steps can be taken to ensure successful planning and achieve better results.

And if you are thinking about adopting this practice in your business, we have listed 7 tips that will guide you in applying effective financial planning. Check out!

1. Make a diagnosis of the current situation of the company

1. Make a diagnosis of the current situation of the company


According to the Administrators portal, the planning consists of:

  • establish the current state;
  • define goals and targets;
  • carry out an analysis of the current situation;
  • analyze the influencers;
  • draw up a plan of action ;
  • make necessary checks and adjustments;
  • continue the cycle.

Thus, the diagnosis is precisely about establishing the current state and the context in which the company is in order to then proceed in the next stages of planning. This diagnosis can be made from the study of the routines, the data collection and a historical comparison of the results.

With this, all information regarding sales volume, production, inventory, costs and revenue, market positioning and marketing strategies will be known and will serve as a basis for defining the next steps to be taken.

The main objective, based on this diagnosis, is to identify examples to be followed and to establish the points that need to be modified. Correcting the problems identified is a major step towards establishing an efficient and profitable business activity.

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2. Develop a financial schedule

2. Develop a financial schedule


The timeline is a very important tool for those who are conducting financial planning. From this date and deadlines are established for the implementation of the strategies and the achievement of the targets.

Once this schedule is defined, it is fundamental to stick to the deadlines and have discipline in the execution of the activities. Some technological tools can help in keeping what was planned and applying the deadlines correctly.

An example is Google Calendar , the digital version of the object responsible for organizing all the appointments over the days. Google Calendar allows, through an application installed on the mobile phone, the programming of all the obligations established for a good financial planning.

It also has alerts defined by those who use it who notify in advance which appointments are scheduled. All this in a practical way and in a device that is always at hand these days.

3. Set goals and objectives

3. Set goals and objectives


Those who want to follow a planning need to set clear goals and objectives, both for the manager and for those who work with him seeking to achieve what was established.

In order for these goals not to be dominated by frustrations, one must understand the context and possibilities of the business well. Henceforth, objectives that are challenging but feasible must be defined.

An example is, after detecting a cost-cutting opportunity, to determine a step-by-step goal that would allow such a reduction not to cause negative impacts. In this way, adaptation to the new scenario will be more solid and permanent. Otherwise, relapses can generate both financial and time losses.

4. Determine a cash flow

4. Determine a cash flow


Cash flow is a control of everything that comes out and what goes into the company’s cashier. Thus, determining a cash flow allows for greater organization and better management of finances, since it facilitates the visualization of the adjustments that can be made in the expenses when the objective is to optimize the realized activities.

5. Conduct periodic evaluations



The constant evaluation of what has been diagnosed and the fulfillment of what was foreseen in the schedule are practices that must be constantly reviewed.

This is because, along the way, modifications or improvements can be detected that will optimize your operation and bring you even closer to the goal of having a sustainable company with growth potential.

Having a periodicity at this time is important so that a strategy is guaranteed that is always up to date with the reality of the company .

An interesting alternative is to set a specific day in the schedule for doing this activity with the time interval that you think necessary between revisions.

6. Negotiate prices and payments

6. Negotiate prices and payments


Just like in personal life, negotiating prices and payments in a company brings savings and opportunities that provide a more comfortable and healthy financial situation. Therefore, this should be a priority when it comes to determining effective financial planning.

For suppliers, for example, ceding discounts or renegotiating deadlines is interesting for customer loyalty. The company can use this as an argument for more interesting conditions that fit the budget better.

In this way, this can also be a criterion to define which partners contribute to the development of the business and its growth. An employee who is concerned with analyzing the proposals received and offering competitive advantages over other competitors needs to be properly valued.

7. Plan investments

7. Plan investments


Once you’ve implemented all of the above tips, you’ll be able to organize accounts and design investments. Whether it is to increase sales volume, hire more employees, or improve infrastructure, the resource needed to make improvements will be available once the planning is well established and the goals achieved.

Although for many managers this subject is considered as extremely complicated, it is possible to overcome the difficulty and obtain information that will help you in a more productive management .

Ready to implement effective financial planning and enjoy the good results it will bring?

Now take the opportunity to deepen your knowledge in accounting and discover what is DRE and how it can help you in the financial statement .