What Is Fee-Based Financial Planning?

A financial plan is a document that harmonizes arrangements for investment, fundraising, and financial results during the planning period. The purpose of making a financial plan is to determine specific quantitative goals for financial management. Financial plans include long-term plans and short-term plans. The long-term plan refers to a plan of more than one year and a five-year long-term plan as a plan to achieve the company's strategy. The short-term plan refers to the annual financial budget. ^[1]

Financial plan

1.According to the highest management authority of the enterprise

1. Determine the plan and prepare the estimated financial statements, and use these forecast results to analyze the impact of the business plan on the estimated profit and financial ratio.

These forecast results can also be used to monitor operations during the implementation phase. Once the implementation situation deviates from the plan, whether managers can quickly learn is an important criterion for the quality of the control system, and also a necessary factor for the company's success in a rapidly changing world.

2. Identify the funds needed to support the long-term plan.

Including the purchase of fixed assets such as equipment and

1. Fixed plan, that is, a financial plan prepared according to a fixed operating level during the planning period;

In China, the main contents of state-owned enterprise financial plans include: various income, expenditures and profit and loss in production and operation activities; product costs (unit costs of various major products and the reduction rate and amount of comparable product costs compared with the previous year) And expense budgets; the distribution of net income and the compensation for losses; and the relationship between the payment and appropriation of enterprises and the state budget; the source and occupation of working capital and the turnover; the withdrawal and use of special funds; Corporate financial planning is an important basis for preparing national economic plans and national budgets.

The principles for preparing a financial plan are:

1. The main financial revenue and expenditure activities of the enterprise shall reflect the guidance of the state plan to the enterprise and comply with the various provisions of national policies and laws and regulations;

2. All indicators must be able to mobilize the enthusiasm of employees to increase production and save, improve business management, and have practical measures to ensure its realization;

3. The indicators in the financial plan should be compatible with all the production and operation activities of the enterprise, and coordinated with other plans;

4. It is necessary to prepare financial plans on an annual, quarterly, and monthly basis, with the monthly guarantee quarter and the quarter guaranteed year.

Western countries implement corporate financial plans, including long-term and short-term investment plans, as well as plans to raise capital and pay dividends and pay corporate bond interest.

Financial plan vs guarantee

1. The main financial revenue and expenditure activities of an enterprise shall reflect the guidance of the state plan for the enterprise and comply with various provisions of national policies and laws;

2. All indicators should not only mobilize the enthusiasm of employees to increase production and save, improve management, but also have practical measures to ensure their realization;

3. The indicators in the financial plan must be compatible with all production and operation activities of the enterprise, and coordinated with other plans;

4. It is necessary to prepare financial plans on an annual, quarterly, and monthly basis.

Western countries implement corporate financial plans, including long-term and short-term investment plans, as well as plans to raise capital and pay dividends and pay corporate bond interest.

In order to make the financial plan work better, attention should be paid to the following issues in the preparation of the financial plan:

First, good financial planning is not independent.

Financial plan case one

The role of financial planning in business plans

A complete financial plan can play the following role in the process of entrepreneurs seeking financial assistance:

First, a good financial plan can not only explain the expected amount of capital required by the start-up enterprise, but also propose a plan for the capital requirement of the start-up enterprise. This information is critical to increasing the likelihood of entrepreneurs getting funding. The provision of capital requirements allows investors to understand their investment costs, and the capital requirements plan allows investors to know when entrepreneurs need funds and how much they need. Because many investors may want to invest gradually instead of investing heavily when the company is just set up. Therefore, the provision of data on planned capital requirements is more attractive to investors. It also helps investors make investment decisions.

Second, a good financial plan can increase investor confidence. The financial plan allows investors to understand the operation of the enterprise and grasp the financial risks of the investment. By analyzing the financial statements provided by the financial plan, investors can understand the financial status and operating results of the company more clearly; understand the capital structure of the company; understand the cash flow of the company; understand the growth rate of the company's sales revenue; understand what channels the company has To obtain income, what necessary payments are required, whether the available cash inflow can meet its daily cash outflow, etc., and then grasp the financial risks of the investment as a whole.

Third, a good financial plan can reflect a company's good management. Clear and clear financial data Only a structured financial system with clear responsibilities can be provided. Therefore, a good financial plan can reflect the management level of entrepreneurs from the other side. On the contrary, if the financial plan is not prepared well, it will give investors the impression that the management of the company is inexperienced and reduce the evaluation value of risky companies, which will not only Increasing the difficulty of corporate financing will also increase the operating risks of the enterprise.

Fourth, a good financial plan can support the specific direction and focus set by the business plan for the development of the enterprise. This can not only enable employees to understand the business goals of the company, encourage them to work for common goals, but also make the company's capital contribution. Investors, suppliers, vendors, etc. understand the business status and business objectives of the enterprise, and persuade investors & original or newcomers to provide funds for the further development of the enterprise.

Financial plan case two

Analysis of the role of financial planning in grain purchase and sale enterprises

The grain financial plan refers to the overall budget of the grain purchase and sale enterprises that comprehensively reflects the expected revenue, expenditure, operating results and financial status of operating activities during the planning period in the form of currency, including grain and oil commodity sales revenue plans, cost of sales plans, and gross profit plans. The total cost budget and profit plan of grain purchase and sale enterprises comprehensively reflect the various business goals and economic indicators of the grain purchase and sale enterprises during the planning period. They can adjust the financial relationship between various departments within the enterprise and control the daily economic activities of the enterprise and assess the operation of the enterprise. Basis of results.

I. The role of financial planning in grain purchase and sale enterprises

(1) The financial plan is the prior management of the business activities of the state-owned grain purchase and sales enterprises. The preparation of a practical plan by the enterprise can enhance the foresight of the management of the enterprise, so that it can predict the changing situation in advance, have rules in advance, and ensure that The achievement of the company's expected performance and economic management indicators.

(2) The financial plan is the follow-up management of grain purchase and sale enterprises, which is conducive to prompting enterprises to adjust their business strategies. In order to ensure the completion of the plan, all departments and all employees must check the implementation of the plan at any time in the daily business activities of the company, pay attention to the actual and plan differences, and analyze the causes of the differences in a timely manner, and take effective corrections. Measures to adjust business strategies to ensure the completion of predetermined goals and tasks.

(3) The financial plan is the quantitative management of grain purchase and sale enterprises, and is the basis for enterprises to determine and evaluate performance. In any financial plan, targets are set in advance, and then during the implementation process, the feedback data is used to see whether the results are in accordance with the set goals and at the same time serve as a basis for evaluating actual results. Only by using the expected performance of the financial plan and the management indicators as the basis for evaluating the performance of the company's management and employees can it be truly reliable.

(4) The financial plan is the rational management and comprehensive management of the business activities of grain purchase and sale enterprises, which is conducive to the enterprise's intuitive reflection of the management content of the enterprise and the communication and coordination between the enterprises.

Second, the steps of grain purchase and sale enterprises to implement financial plan management

(1) Preparation of financial plan

Whether the financial plan is scientific and reliable, targeted and operable, depends to a large extent on whether the data and information based on the preparation process are true and complete. In order to obtain the detailed data and information required for the preparation of the financial plan, we are collating While analysing the existing accounting data, earnestly carry out investigations and studies, go to the rough and extract the essence, remove the falsehood and keep the truth, and do a good job of forecasting various economic indicators and business objectives, and extensively solicit the opinions of the management and employees, so that the financial plan has a solid mass. basis. The financial plan is a guide for future business activities, so the indicators of the financial plan must not only reflect the business objectives and economic indicators of the enterprise, but also have the possibility of being realized. It must be forward-looking and leave room. At the same time, the financial plan The plan involves the goals, revenues and expenditures of the various departments and grain management offices of the enterprise, and these departments and offices are interconnected and mutually restrained. The relationship between them is coordinated by the realization of the overall goal, so financial planning is required. The levels of indicators should be clear and practicable to ensure the realization of corporate financial plans.

(II) Implementation of financial plan

According to the prepared financial plan, the various economic indicators are decomposed and implemented into various business links such as grain and oil purchase, sales, storage, processing, etc., so that each business link assumes certain economic indicators and business target tasks, and ensure that the economic indicators of the financial plan fall. To the real place. Grain purchase and sale enterprises should always keep abreast of the completion of economic indicators in their business activities, establish and improve the assessment system, check the supervision and management from time to time, find problems, analyze the reasons, and combine the situation of inspection and supervision to adjust the business strategy and management of the enterprise in a timely manner according to market conditions. Measures to promote the completion of various economic indicators and business objectives and tasks. By comparing the actual performance with the financial budget indicators, not only can we determine the performance of the company's performance, but also confirm the responsibility of all employees for performance, enhance the sense of responsibility and urgency of employees to complete economic indicators, and promote enterprises to further improve their operations. Strengthen management and improve efficiency. So as to ensure the healthy and stable development of the enterprise.