Under present conditions long-term financial planning covers the period from one year to three years. Long-term planning consists of developing the financial strategy of the enterprise and financial forecasting activities. The financial strategy of the enterprise is a definition of long-term goals of financial activity of the company and choosing the most effective ways to achieve them. The financial strategy must also be consistent with overall company strategy, although it also has on the overall strategy of an impact.

The base of long- term planning is forecasting, the incarnation of the company strategy.
Forecasting means studying the possible financial condition of firms in the future. The base of the forecast is a compilation and analysis of available information and then simulating of possible scenarios. Information base forecast is accounting and statistical reporting enterprise.
Unlike planning forecasting is not the task of implementing forecasts in practice, since the forecast is only possible to predict the scenario of the situation. Forecasting involves the development of alternative financial indicators and parameters. Their use in emerging and pre-predicted trends in the market helps define one of the options for the development of the financial situation of the enterprise.

Result of the long- term financial planning is to develop the three main financial documents:
? forecast profit and loss account;
? cash flow forecast;
? forecast balance sheet.
The main aim of creating these documents is to assess the company’s financial situation at the end of the planning period.

For making projections of financial documents is important to correctly determine the amount of future sales. It is necessary for the proper organization of the production process, distribution of funds, control of inventory. Forecast sales volume gives an idea of what market share the company requires to take. Projections are based on sales data for previous periods and market research, including surveys of potential consumers, the study of trends and new trends in the market.

Forecast sales are expressed in both monetary and in physical units.
By means of the forecast profit and loss account the value of their profits in the coming period is determined, it shows the dynamics of the financial operations of the enterprise.

Forecast balance reflects a fixed, the statistical picture of the company’s financial situation.
Forecast cash flow reflects the cash flows of the current, investment and financial activities. Demarcation activities in the development of the forecast improves cash flow management.
By means of using the cash flow forecast you can more accurately assess how much cash is needed at certain times to synchronize the receipt and expenditure of funds.

After compiling this forecast a funding strategy for the company is determined. Consistently are determined the sources of long-term financing, capital structure is formed and the cost, the way is chosen to build long-term capital.

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Current financial planning is an integral part of the long-term plan. It is based on the established financial strategy and financial policies on certain aspects of financial activity and represents a specification of its parameters. Developing specific types of ongoing financial plans allows the company to define the coming period, all sources of funding for its development, form the structure of revenues and costs the company to ensure continued solvency, determine the structure of assets and the firm’s capital at the end of the planning period.

Current financial planning is to develop three key documents:
? Plan cash flow;
? Plan of the profit and loss account;
? Plan balance sheet.

The main purpose of these documents is assessment of the financial situation of the company at the end of the planning period. The current financial plan is created for a period of one year.
A yearly financial plan is divided on a quarterly or monthly, depending on the funding needs. More specific plan allows you to more accurately coordinate the movement of funds to match income and expenses, eliminate cash gaps.

On the phase of creating the annual financial plan is established and respective capabilities of the enterprise for the production of products, services supply and demand in the market.
Current financial plans of the enterprise are developed from data on:

? financial strategy of the firm;
? results of financial analysis in the intervening period;
? planned volume of production and sales;
? other economic indicators of the operating activities of the company.

Also on plans developed affect the existing legislation, the tax system and other external factors.
For the financial instruments it is important to determine the amount of future sales, usually this plan is still at the stage of long-term financial planning.

Based on these data, the necessary amount of material and labor resources are determined and other composite manufacturing costs are calculated. And already, based on these data, a planned profit and loss account are developed. With this report profit margin is projected, which must be received in the settlement period.

At present time in medium and large enterprises method for planning costs of the centers of responsibility is widespread, when the head of each department is responsible for the costs of his department.

Then there is a plan for cash flow. This plan takes into account all receipts and disbursements, costs and expenses, shows the net cash flow, then there is an excess or deficit of funds at a particular time. In fact, it shows the cash flows of the current, investment and financial activities. Differentiation of types of activities can improve cash flow management.

The plan of cash flows for the year is drawn up by quarters and includes two main parts: income and expenditure. These parts are in turn divided into expense (income) by type of activity: the current, investment and finance.
Final document of current annual financial plan is a planned balance of assets and liabilities at the end of the planning period. It shows the condition of the property and finance companies as a result of the proposed activity.

The object of developing the balance plan is the formation of an optimal capital structure, providing sufficient financial stability of companies in the future period. Financial control is done by comparing actual performance with the plan.

Economic recession has made lots of people search for different ways to save funds and saving money expert. Other guys who already made some cash and would like to make more, no doubt might want mutual funds investment advice. Moreover, financial planning should be of help to young people as they need to manage with many things in their lives, and here financial advice for young people site could help them.

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Proceeding from the specifics of the operation there are strategic, tactical and operational plans. In this case, two-, three-year development plan of the enterprise should include the following sections:
? Concept of Development (main trends of development, the objectives of enterprise resources and their use);
? a plan of production activities;
? a financial plan;
? an investment plan.

The annual plan for the current activities of small businesses includes two sections: a plan of production and a financial plan.

The plan of production activities of the enterprise includes a plan of distribution (selling) of products, production program, plan of logistics, plan of staff, the planned calculation of production cost and revenue plan.

The main indicators of the plan may be:
? range of products (works, services);
? sales (revenues);
? production costs;
? Income from production and sales.

On the change in demand the company can respond with the reduction of the planning period or the adjustment of plans.

The company wants more quickly to take into account market opportunities, the availability of orders and, on this basis, plan sales, production, profits, costs of production and other indicators. In some cases it is desirable to involve customers in the development plans.

While organizing the system of costs management it?s appropriate to lay out their reduction in the whole enterprise.
Financial plan ensures the transparency of financial and economic condition of the enterprise to owners, investors, creditors, and is a key element of financial management company.

The development of the financial plan allows you to combine the interests of the company’s development, availability of sufficient financial resources to carry out the operation, to ensure solvency.
The practice of development of operational plans provides for two schemes of work :by the method of break-down (\ “down \”) and the method of build-up (\ “bottom-up \”). By the method of \ “down \” the work starts from the top, starting with the overall goals and objectives of the financial plan. Then these problems in a more detailed form are included in the plans of divisions, which develop concrete action plans and the availability of resources needed to implement financial tasks.

While organizing works according to the method \ “bottom-up \” the calculations begin at the individual business units, and then are consolidated in a single financial plan for the company.

In the final analysis, all kinds of plans for the planned revenues and expenditures are summarized in the financial plan of the organization. It gives a full picture of where and when to get the money, what they will be spent for, as relates to the need for money in cash, what would be the financial situation of enterprises by the end of the planning period. Currently, the financial plan is recommended for the year broken down by quarters (according to accepted standards of accounting in the formation of Russia), as it will be the basis of the current fiscal control.

The financial plan includes the following sections:
? an income and expense plan;
?a plan of receipts and payments;
?a balance Plan;
? a plan on sources and uses of funds.

The development of the plan of revenues and expenditures begins with determining the volume (sales revenue) and cost of production and sales (cost).

The plan of cash receipts and disbursements is based on the plan of income and expenses. In this section, the financial plan reflects the actual cash receipts and disbursements. If the profit is the difference between the cost of sales and expenses, then the cash is the difference between actual cash receipts and disbursements.

World crisis has made many people look around for various ways to save money and saving money expert. Other guys who already have some cash and would like to make more, for sure might need mutual funds investment advice. Moreover, financial planning might be of great interest to young people as they need to manage with many things in their lives, and here financial advice for young people site can help them.

Fortunately we live in the world of high technologies. It wouldn’t be wise not to use this truly unique chance. Current online technologies provide us with a way to break the borders and look for anything we need all over the world. Visit different social networks, look through relevant topics, join online discussions in niche forums. All this will help you be well informed about the events concerning your interests. And, sign up for the RSS on this blog to keep track of the latest publications on the topic.

As a rule a long and overly detailed description of the general issues makes you yawn, it has little use in practical terms, and the main effect of these definitions is that they are forced the readers to be tired and criticize severely these authors. In order not to fall into the same bad situation, we would like to give the bare minimum of information about the types of financial planning, selecting just the practical significance of the diversity of financial plans.

Time periods for which financial plans are prepared may be different. Usually financial plans are prepared on a rounded period - month, quarter, half year, 9 months, 1, 2, 3 or more years. This tradition has not developed itself, and due to ease of operation. It is much easier to plan and use it for, say, a year than a year and 10 days. Time span, for which the financial plan is compiled is essential. The most accurate are usually short-term plans. The least accurate are long-term plans. This is easily explained. It?s much more difficult to give an accurate forecast for a month, than for one day. The longer the planning period is, the greater may be factors, unimportant or unknown at the moment, which could significantly affect the situation in the future. None of the forecast can predict all future force majeure, this should have foresight. Hence, again it must be stressed the importance of the adjustment mechanism of the financial plan, taking into account changes in various internal and external factors. In the absence of such a mechanism, a financial plan drawn up to 5 years may be unrealistic in a few months.

So, short-term plans are easier to make and they are more accurately. Therefore, the short and long term plans are somewhat different.

The difference in preparing short-and long-term financial plans may also occur in the degree of details. Typically, short-term financial plans are more detailed. It?s more realistic to consider quite minor figures for a relatively short period of time than in the preparation of long-term financial plan.
Financial plans may be main and auxiliary (functional, private). Supporting plans are designed to provide basic preparation plans.

For example, the basic plan includes targets for revenue, costs, tax payments, and many others. But to reduce all the indicators in one plan, i.e. to make a basic plan, you must first make a number of subsidiary plans almost on each indicator. You should lay out the amount of revenue, cost and value of other indicators. And only then we can bring it all together, getting a basic plan.

Plans can be formed both within individual business units and across the company as a whole. Consolidated aggregate financial plan of the company, which includes major plans of individual units, will be a general financial plan
Users of financial plans may be different - the tax authorities, statistical agencies, lenders, investors, shareholders (founders), etc.

Economic recession has made lots of people look around for different ways to save funds and saving money expert. Other guys who already made some cash and would like to make more, certainly might need mutual funds investment advice. Moreover, financial planning should be of help to young people as they need to cope with many things in their lives, and here financial advice for young people site may help them.

Luckily we live in the world of digital technologies. It wouldn’t be wise not to take advantage of this really unique chance. Current online technologies provide us with a way to break the borders and search anything we need all over the world. Visit social networks, look through related topics, join online discussions in niche forums. All this will help you keep abreast of the events concerning your hobby. And, subscribe to the RSS on this blog to keep track of the latest publications on the topic.

If you have a family then a question of the family budget will be interesting for you. If you want to know how can the ordinary family save and accumulate money, then this article will be useful for you. Here we will note some tips on how to save money in the family.

Rule of the third dollar.
The success of the savings depends not only and not by setting aside large amounts, but on the regular cost planning. Choosing for a particular family the most appropriate format of the allocating of money it should first decide the major financial challenges. If a major purchase - an apartment, car, furniture, household appliances ? is going to be, the schedule of the expenditures will be tough enough. If the major purchase is made, automatically increasing expenditure on leisure and entertainment, and, of course, there is an opportunity to save money.

One of the basic rules of money management is to invest only after repayment of all loans. Agree: it makes no sense to pay for expensive credit and thus keep money on deposit at a lower rate, if at all “under the pillow.” By the way, according to financial experts, in the west a person begins to engage in investing, when he has a so-called “third dollar”:

During the “first dollar” the person gets home, car, daily necessities. During the “second dollar” ? a person buys a second car (for example, for his wife), payment of children’s education, travel abroad. And finally, the “third dollar” corresponds to the time when the person has “extra” money that he is unable to efficiently dispose of his own.

The experts say that you should start make savings as soon as the loans are repaid. The optimal size of the postponed amounts is 10-20% of the revenues.

Risks and return
Polls show that, regardless of the temperament among the most profitable investments still consider buying real estate. Meanwhile, real estate is not the first year ranks among the most risky investments.

Purchase of investment certificates is still riskier investments, so that the rush to the stock market, based on the instantaneous profit, is not worth it. However, a year later the situation may change radically, because the 2011-th promises to be a year of capital inflows.

Regardless of the needs and abilities of each individual to ensure its financial health experts consider it necessary to life insurance, pension contract and - most importantly - “stabilization fund” as a bank deposit. Regular investing money in a deposit account over time can grow impressive personal assets. Judge for yourself: if you set aside each month for $ 100, placing them at 12% per annum over 38 years the account would be one million dollars! The way for his million is long, but the goal is quite realistic. So, there is good reason to start a new financial life in a single personal budget.

Economic recession has made lots of people look around for various ways to save funds and saving money expert. Another part who already made some cash and would like to make more, no doubt might be interested in mutual funds investment advice. Moreover, financial planning should be of help to young people as they need to manage with many things in their lives, and here financial advice for young people site could help them.

Luckily we live in the world of high technologies. It wouldn’t be good not to take advantage of this truly unique opportunity. Modern online technologies allow us to break the borders and search anything we need all over the planet. Visit social networks, check respective topics, participate in online discussions in niche forums. All this will help you keep abreast of the events concerning your hobby. Also, subscribe to the RSS feed on this blog to keep track of new publications on the topic.