The two most important pillars of any business are financial planning and management. They help you decide the future goals of your company and analyse how you can use your present resources to meet these goals.
What are Financial Planning and Management?
Financial planning involves estimating the resources, material, equipment, and activities to achieve the short and long-term strategic objectives of a business.
Financial management helps you study the present financial health of your business through financial statements like the profit and loss account and the balance sheet. If you need a financial advisor, then EFL Connections has a team of experienced chartered accountants who provide services like Cash Flow Management Advisory to make sure you manage your finances better.
With better Cash Flow Management Advisory, you will reduce your interest burden and increase your profits. The financial advisor will analyse your monthly cash flow statements and advice you on how to you can improve it.
Importance of Financial Planning
We have already answered the question of what is financial planning for a business. Now we find out why financial planning is important.
Financial planning is important because it creates a path for the long-term profitability of your business. Here are some of the reasons why financial planning is important:
To ensure financial management for business is effective, you need proper financial planning. Financial planning helps create a well-defined revenue model. You can estimate the potential profit and loss.
Financial management for business requires finance professionals like chartered accountants.
They will help you estimate your capital requirements, determine the debt to equity ratio, choose the source of funds, and more.
Financial management for small business would be cost-effective if they engage professional firms providing advisory services digitally.
Setting Realistic Goals
Financial planning helps in setting goals that your organisation can realistically achieve since you have the projected revenue for a 5 or 10 -year period. It gives you a long-term vision for your business for which growth and expansion plans can be designed. This makes financial management for small business easier.
Improved Decision Making
When the steps to the long-term growth of your business are well-defined, you make more informed decisions that are important for your business’ success. For any investment or financial loan, you need to refer to this guide. Getting a financial loan for your business is easy with EFL Connections.
Funding for business can be internally or externally generated. If you don’t have adequate profits, then there are financial services companies in India that offer different types of loans tailored to your needs. You could opt for a machine loan, a business loan, working capital demand loan, industrial property loan, loan against property, emerging enterprise loan, or rooftop solar loan.
With the growth of business financial planning in India, you can find out the best terms for loans at competitive rates.
Monitor Your Liabilities:
With financial planning, you pay attention to both your assets and your liabilities for proper resource allocation and budget planning. You can get advice from financial service companies in India that will help you in scheduling your loan repayments or the right time to go for a fresh loan.
You can choose the financial services offered according to your business needs. There are companies that offer financial planning in India to help you find the cheapest funding options.
Types of Financial Planning
The different types of financial planning include the Basic, Pro, and Plus plan.
If you opt for the basic plan, you get Strategic, financial, and cost advisory services. This includes Cash Flow Management service. If you upgrade to the Pro Plan, you get cost and price management in addition to what is offered under the Basic Plan. The Plus Plan offers everything included in the Basic and Pro Plan along with internal process review and cost reduction plan.
The Cash Flow Management service will help you coordinate your receipt and payment cycles.
What Does a Financial Advisor Do?
When you engage an advisor, they provide you with strategic financial advisory services. Strategic financial planning includes budget development, resource allocation, working capital management and risk identification and management.
Your business productivity and profits go up with strategic financial advisory services.
You can’t succeed in business without professional financial planning and management. There are firms that offer these services have qualified professionals who will provide you with the best solutions.