Imagine the business financial planning as a treasure map: through it, your organization guides itself step by step towards the achievement of small goals so that a greater objective is achieved. And, for this, the financial health of the enterprise is constantly valued, so that the investments are accurate and assertive.
Every manager should have complete business financial planning. After all, it is part of the organization’s business plan, guiding it to achieve its goals. goals.
Imagine that, without this type of planning, you do not have the data necessary for quick and assertive decision making – which implies choices based on guesses, not certainties.
Do you want to see how corporate financial planning has everything to impact your organization in the short term? Just continue reading this post, in which we also selected 5 tips to do it efficiently!
What is business financial planning?
Anyone who has ever played blind goat may even have fun finding their goal in the dark, but no endeavor should be governed in this way. And, with corporate financial planning, we can say that your employees “Take the sale” to aim at the stipulated corporate achievements.
And what does that mean? That, with a view to maintaining and improving the financial health of the organization, a complete mapping of:
- debts present in everyday life.
In this way, future projections become clearer. No bets, guesses or intuitions: with everything duly recorded, few surprises come to meet your goals – be they in the short, medium or long term.
The benefits your company accumulates when carrying out financial planning
Assertiveness is one of the great gains that your organization obtains through financial planning. It is worth noting, however, that it is not the only aspect to be valued. After all, its establishment in the corporate day-to-day still offers:
- better financial control in the company, allowing the financial sector and accounting to be more secure and agile in decision making;
- ease for the composition and elaboration of investments on the right time. However, the organization’s performance and financial health are not adversely affected;
- reduction of expenses from the diagnosis of expenses that are more waste than necessary.
For the organizational and development aspects of your human resources, imagine that corporate financial planning can direct, every month, an extra income for the training and qualification of employees.
In other words, with the reduction of expenses, you can still promote productivity and elementary characteristics for retaining talent.
The 5 tips to set up a business financial planning
After exploring what business financial planning is and the advantages of adopting this model of organization and control, it’s time to roll up your sleeves and understand, in practice, how to apply it in your company’s day-to-day life! Check out!
1. Analyze the company’s situation and timing
Your planning must have as a principle the history and the moment in which your company is. Thus, it is possible to answer some questions, such as:
- What is the company’s position today?
- What are your financial challenges and obstacles?
- What initiatives are recommended to solve these problems?
- What is the company’s investment capacity – in the short, medium and long terms?
This is crucial information, as you might imagine, because it opened up everything your team needs to know for a more assertive and immune to unforeseen planning.
2. Gather data in one place
Do you use spreadsheets or management software to analyze your company’s performance indicators? Although the second option can potentially help in this process, it is important that you have all the data gathered in one place to facilitate visualization – macro and micro – of the organization’s financial health.
It is worth noting how much this type of activity allows a more enlightening notion regarding the management of cash flow, inflows and outflows or even accumulated debts. And so, corporate financial planning reveals itself as an ally of the complete organization of the company.
3. Target the budget for the entire workflow
Now is a perfect time to assess your budget for all company activities, such as:
- fixed costs;
- variable costs (this, and the item above, based on the company’s history);
- need and types of investments;
- sufficient amount to maintain cash flow;
- investment possibilities.
This all allows the financial:
- do not be caught off guard in the face of an emergency situation;
- have clarified plans in the short, medium and long term;
- avoid blind investments.
Even so, the budget has to be deeply aligned with some of the company’s goals. Through them, it is also possible to value the conscious use of resources.
Good examples of this are:
- the reduction of company costs that are fixed;
- priority in paying off loans with higher interest rates;
- the search for new contracts with suppliers;
- attracting new financial contributions, among other goals.
This all directly influences the business budget that the company will have in different periods. Thus, it is worth having all the mapping to list:
- secondary needs.
4. Simulate scenarios
It is important to have, in perspective, the different scenarios that can unfold through the search for the stipulated goals. This goes for both positive and negative outcomes, facilitating decision making in the face of any situation that may occur in the company.
5. Get to work
With all your corporate financial planning defined, how about putting into practice the search for your goals and objectives?
In this step, have the action plan drawn up and execute it. In addition, it is important to have:
- mapping actions with simulation of scenarios always at hand;
- a realistic timetable for the execution of these actions, as well as the results;
- a deep alignment with everyone involved, the team, and aware of their respective responsibilities;
- a thorough monitoring of the metrics associated with the objectives;
- rich documentation of all actions, performances and results – essential for future evaluations.
Through these tips, you will have a complete business financial planning! All you need to do is align these steps to the reality of your business and thus reap the rewards continually!
Enterprise planning involves the entire company
You can also improve your company by taking care of the financial health of employees. This increases the productivity of its employees and improves the work environment. All of this has a direct impact on your financial results.
HR Consultant UKy is a HR Consultant UK tool that offers salary on demand. By registering in the system, your employees can withdraw their payments whenever they want in a simple and instantaneous way.
HR Consultant UKy has already brought results for several companies such as:
- 10% increase in talent retention;
- 20% improvement in employee productivity;
- 100% increase in attraction of applications for new vacancies.
Learn more about HR Consultant UKy and add that benefit to your company’s team.
Now, to complement what we saw throughout this post, how about checking out the great benefits you can have in your corporate day-to-day, if the company invests more in financial welfare programs? Good reading!
Did you like our article? Stay tuned on our Facebook, Instagram, Twitter and LinkedIn and don’t miss our daily management and HR content.
But, don’t limit yourself to these inspiring ideas. How about, now, like our Facebook page and follow us on Instagram, Twitter and LinkedIn? There, you are always inside, and first hand, of all the tips and news that we have prepared especially for you!