Business Financial Planning and Budgeting Guide
Learn about the phases of financial planning, types of business budgets, steps for preparing a budget, and the importance of maintaining financial records for analyzing business performance. Get insights on startup, operation, and expansion financial planning, different types of budgets, and key steps to create an effective business budget.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Unit 4 Review By: Michael Cash
Financial Planning What happens during each phase? Start-up Financial planning includes determining the amount of money needed to start and operate the business until a profit is made. Also the major sales and expenses are determined. Operation Financial planning includes determining whether they are making enough money to operate. The basic formula used is Revenue Expenses = Profit or Loss. Expansion Financial planning includes determining whether enough money is made to cover growth opportunities.
Business Budgets Types of business budgets: Start-up budget used by a new business or during expansion of a business until profits are made. Operating budget used for ongoing business operations for a specific period. Cash budget used to estimate cash flow in and out of a business.
Preparing Business Budget Steps for preparing a business budget: 1. Prepare a list of income and expense items. 2. Gather accurate information from business records. 3. Create the budget. 4. Clearly communicate the budget to key employees in order to make sound business decisions.
Purpose of Business Records Financial records provide specific information about business activities that is used to analyze the financial performance of a business.
