Find a Financial Planner near you
The average rating for Bark Financial Planners is 4.86, based on 51,335 reviews
5/5
based on 51,335 reviews
Financial planning is the equivalent of a doctor’s check-up but for your business. It assesses your current position in relation to your goals. The plan will outline a roadmap for how your business will achieve its aims, along with creating a contingency plan for any challenges that may arise.
Any business can benefit from financial planning, though startups or companies wishing to expand are most likely to request the service. Here’s an overview of business financial planning to tell you more.
While most financial plans contain many of the same elements, there is a clear difference between financial planning for your individual wealth, and for that of your business.
Individual financial planning typically includes a retirement plan, investment strategies and an estate plan. The goals will revolve more around tax deduction and achieving a minimum income once you are no longer working.
Business financial planning may consider aspects such as hiring additional staff, purchasing new inventory, diversifying product lines, and expanding to a new location. In essence, the plan revolves solely around your business expenses rather than anything to do with your personal accounts.
Creating a balance sheet is usually the first step of any financial plan since it gives in-depth information about your company’s overall position. A balance sheet outlines everything your business owns. It covers the likes of your business assets, liabilities and any equity.
In terms of assets, the balance sheet will factor in your current and fixed assets. Current assets include the amount of cash a business has available, any money owed to the business or to other businesses. Fixed assets refer to land, property and equipment that belong to your business.
A cash flow projection looks at how much money is expected to come in and leave your business in the future. They are an excellent indicator of the stability of your business, especially when it comes to being able to hire new staff or even take out a loan.
Creating a cash flow projection can help you make better financial decisions since you will be planning ahead instead of guessing whether you can afford the item or not. It will also give you an idea of how much profit your business needs to turn over in order to stay on track for the planned investment or spend.
An income statement takes a close look at your business’s revenue and expenditure over a specific period. Most businesses undertake income statements monthly, quarterly or yearly since such information is also needed for tax purposes too.
It is an excellent method of comparing how the company has grown over time and also if the current period is performing as expected. If there has been a dip in revenue, an income statement will be able to help pinpoint the reason.
Business financial planning gives you all the facts about your business’s performance. However, it also helps you to look into the future, making sure your current efforts and strategies are in line with where you want your business to go.
Qualified financial experts carry out the service, meaning you will get an accurate and trusted opinion.
The average rating for Bark Financial Planners is 4.86, based on 51,335 reviews
5/5
based on 51,335 reviews
Need help planning the financial future of your business? Read our handy guide to find out how much your business financial planner will charge for their services.
