Financial Planning

pecuniary resources ar those resources that have monetary value monetary management is the planning and supervise of an systems pecuniary resources to enable the organization to achieve its financial goals Assets are the property and other items of the disdain both tangible and intangible. Objectives of financial management: Liquidity - logical argument leader to pay short-term debts. Profitability - maximizing simoleons Efficiency - ability to maximize profits with minimal resources maturation - increase size in the longer term outlet on Owners honor - percentage of profit compared with get along invested.

The Planning Cycle Address current financial coif Determine financial elements of business plan Develop budgets monitor property flow Interpret financial reports Maintain take down system Planning financial controls Minimizing financial risk and losses Major participants in financial markets avows Finance/insurance companies merchant banks RBA Super funds Mutual funds Public/ secluded companies ASX Sources of funds Internal sources - Owners virtue - Retained profits Advantages - unkept gearing - little risk Disadvantages Lower profits and generate on OE External sources o         Short-term §         Overdraft §         Bridging finance §         Bank bills o         Long-term §         Bonds §         Mortgage §         Term loans §         Leasing §         Factoring §          slyness credit §         Venture capital Advantages Increased funds task deduction ! on interest repayments Disadvantages Increased risk aegis required Regular repayments Lenders have introductory claim on money if they go bankrupt Leverage measures the relationship among debt and equity The accounting framework Raw data Processed Data Accounting Data Analysis of report Financial Statements §         gross statement - shows revenue earned and expenses incurred everywhere the accounting period. §          correspondence Sheet - shows the businesses assets and liabilities at a rate in time. Financial Ratios Liquidity Current Ratio = Current assets (working k)         Current liabilities                  2:1 safe position Solvency Debt to equity = Total liabilities                   Owners Equity Profitability Gross Profit... If you want to get a all-encompassing essay, order it on our website: BestEssayCheap.com

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