Financial Planning

Financial Planning

Regardless of the profession you have chosen to study, or activity that is exercised as average production for economic self-sufficiency, the dynamics at present imposed by a market totally open and globalized requires that persons who are in the position to make decisions, whether in a business or certain, are sufficiently prepared to know analyze and interpret with financial information concerning documents. Without a doubt, each of us on a daily basis we practice an elementary model of finance, and distribute the income based on our needs and requirements. If we have known us properly manage we can sleep with some peace of mind, otherwise it is very likely that we will have ongoing problems with our creditors. Transferring this simple example to the business world, it gives us the pattern to analyze the importance of financial planning within an organization. Planning itself brings many advantages, because it works on goals and objectives clearly defined short-term, medium and long term, in addition to which proposes a strategy to achieve them. It is therefore that in the outstanding and successful companies is formulated a strategic planning which involve various factors, being one of the leading the financial. But what is implying the financial planning of a company, separate neatly keeping the accounts of assets, liabilities and timely comply with our tax commitments, activities base and mandatory. As well, must engage fully in the management of the business and grant long enough for a detailed study of indicators such as the utility, profitability, and growth of capital.

Because it is good to have utilities but better profitability. And profitability is good but it is better to have capital growth. Other factors to take into consideration are the liquidity, solvency and leverage that month by month keeps the company. Also, an essential and valuable support tool are financial statements, which constitute two major pillars: 1) the Balance sheet, which indicates how much has grown or diminished the heritage from one period to another, and 2) the result State which gives us reference utility or loss for the period. It goes without saying that for each of the indicators described there is a mathematical formulation through widely documented graphical or analytical methods and general consultation, but what’s really important and the responsibility of a good leader is know to translate the figures which we throw each of them to make a diagnosis attached to reality and so to identify if you are following the correct path, or otherwise have sufficient elements to take a wise decision and a tactical manoeuvre which allows correct the path in the achievement of the objectives set. Well, the challenge is great and does not give option to hesitation, competitive companies are focusing their efforts in continuously improve your processes, and of finances is no exception, required of people leaders with the talent needed to cope with it, courageous and disciplined in planning. Because although there are models that describe the behavior of finances, do not lose sight of the idea of the English economist John Maynard Keynes (1883-1946). In essence, the Keynesian idea is all political, social and economic systems invented by man are conceived whereas rational and good attitudes of being, and on the contrary, all of them are governed in greater or lesser degree by animal spirits, i.e., moved by his spontaneous act need.

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