Financial Planning Process
Financial planning process requires the most professionalism and attention to the every detail. While financial planning estimates main financial indicators or financial statements, the process of it includes also many interim parameters that also should be estimated to get the final result.
Financial planning process may include these steps:
- Analysis of company’s past financial indicators.
- Market research including market development estimates for the next year.
- Company’s sales projections by quarter or by month.
- Company’s expenses projections by quarter or by month.
- Financial model implementation (including estimates of income statement, balance sheet and cash flow statement).
Financial planning process may sound simple but in reality it is a huge work to do and many details have to be taken into account.
