Updated at 26/07/2022 - 10:03 am
Financial planning for the new year is very important for a business as it relates to established financial goals and how resources are used to achieve them. In addition, financial planning is also part of the work that takes a lot of time and manpower because it requires the participation of many parts of the business.
Determine the economic context, business orientation #
Financial planning is part of financial management. This activity requires a research investment before starting construction. Administrators should not miss out any information related to financial matters. Prepare and study every nook and cranny of the market so as not to be surprised by the changes and make an informed decision. Repositioning the brand, redefining the business model to suit the situation, redefining the way to organize work in the future. Financial planning, business planning also helps businesses demonstrate their ability to work continuously against the effects of adverse factors such as the impact of the COVID-19 pandemic.
Determine corporate financial needs #
A wise manager is someone who prioritizes important goals and decides on the right steps. Therefore, it is necessary to determine financial needs by answering questions such as: What is the investment objective of the business? How much money to invest? Investment in what type? Investing in the long term or short term? Which part needs to restructure? What is the potential to generate benefits from restructuring? How to expand business operations this year? What financial resources are needed for the expansion? Once the specific financial needs have been identified, the manager will be able to orient the next steps.
Collect financial data #
Once your financial needs have been identified, the next step is to create a financial plan to understand more about the intended cash flow to invest and the legal liability of the business. During this step, the administrator may need the help of a financial planner, who will help gather the necessary documents about assets, liabilities, tax deductions, balance sheets. income and expenditure, employee, pension fund, insurance policy, brokerage, bank statement, ...
In addition, the financial plan should also clearly define the risks that may be encountered in the future and have resources to prevent it.
Develop a financial plan #
Development of a financial plan must begin with an administrator presenting implementation ideas for the issues considered in the previous step. Development includes the following items: explaining the pros and cons of the plan, understanding tax laws and the financial system, examining health and safety issues, and reviewing resilience. with network security risks and risks, building a safe digital environment, avoiding fraud and risks, considering the application of technology in management and production and business activities.
Deploy a financial plan #
Implementation of the plan is an important step in the development process. Administrators can take about 4-6 months to implement the plan. During this period, the complicated details related to tax or salary insurance, ... need to be considered as much as possible and if possible, the administrator should seek advice from the legal department. from outside attorneys to make the best decisions. It is very likely that at the end of the implementation, the financial plan will receive many offers for cooperation if it is built on meticulousness, professionalism with many great ideas.
Building technology platforms for management, urgently digitizing, supporting decision-making ability, ability to instantly improvise when something happens. Each management layer must have its own data system for decision making.
Financial plan monitoring #
During deployment, the enterprise administrator also needs to monitor and supervise each step of the process. Portfolio assessments, insurance updates, investment options, taxes and reports on market conditions, updates on business trends, market sentiment ... are necessary documents. carefully monitored to predict and avoid potential risks. Continuously update cash flow fluctuations, make forecasts of cash flow in the short and long term, promptly adjust if the cash flow does not meet the needs of the business.
In addition, the manager also needs to make the most of his ability to probe, observe and quickly grasp the changes of the market, proactively changing according to those changes. Update restructuring progress to maintain relevance to the situation, and thereby seize a great opportunity for M&A.