logo

Personal Financial Finance Report

   

Added on  2020-03-16

26 Pages3826 Words84 Views
1Name:Course Professor’s nameUniversity nameCity, StateDate of submission

2Executive summaryThis report covers all the aspects of personal financing for an individual. The report shall cover a complete risk assessment of the individual, clients needs analysis , the balance sheet for the individual and the projected balance sheet . Also included in this report is the individuals cash flow statement and projection, risk assessment, investment analysis , estate planning and the superannuation plan.

3Table of ContentsIntroduction.................................................................................................................................................4Risk Assessment and Insurance Table.........................................................................................................4Clients Need Analysis.................................................................................................................................6Key assumptions..........................................................................................................................................8Balance sheet and Projected balance sheet..................................................................................................8Budget/ cash flow statement......................................................................................................................10Risk assessment Insurance Needs..............................................................................................................12Tax minimization Strategies......................................................................................................................13Investment Analysis..................................................................................................................................14Superannuation plan..................................................................................................................................18Estate plan.................................................................................................................................................19References.............................................................................................................................................20Appendix...................................................................................................................................................21Personal Finance Questionnaire.................................................................................................................21

4IntroductionLike any strategy, this planning of the financial aspects requires following a method, with these general steps: Establish the goals of the organization, in general or by areas, and define in what order they should be achieved.Define dates for the achievement of the proposed objectives.Prepare a budget that identifies the financial instruments to be used, for what period and for what purpose to obtain the results sought.Manage the budget and measure the results to follow the route plan and make adjustments when necessary.Main Benefits of Financial PlanningThis planning is the basis of business growth, as it guides how resources will be used to achieve expansion, the development of new products or services, or increased sales.With optimal financial planning, the organization will anticipate many anticipated risks by using tools that allow it to prepare for the changes, and seek funding when needed(Billingsley, Gitman and Joehnk, n.d.).It is also a way of predicting the future performance of the company through sales and income projections, valuation of assets and liabilities, and to develop strategies to improve cash flow in times that are expected to be difficult.Risk Assessment and Insurance TableRiskProbability of lossSize of Loss( wks)Risk ExposureAddition of Unknown features35%82.8Overly optimistic schedule15%52.25New programming tools and savings25%152.5Additional requirements20%202.5Project approval18%150.75Facilities not ready on time20-25%50.2-0.4Project approval 10%100.5

5Insurance risk10%151.5General risk5%50.75Medium- and long-term planning should be a guide for purchasing equipment and inputs based on expected demand, but it will also serve as a valuable document when looking for investors or financing, as it details the real prospects of the business.Evaluate the efficiency of financial planningEvaluate the efficiency of planningIt is always necessary, rigorously, to evaluate the results of planning.This implies the constant formulation of projections that take as basis the norms, the performance of a process of feedback and its later adjustment.It is necessary to use several types of budgets per area of an organization. In order for a good financial plan to exist, there needs to be a strategy(Ho and Robinson, 2012).The quality of the plans, programs and financial budgets will always be conditioned to the form and elements used in such planning.Elements to Consider in Financial PlanningFinancial plans cannot be perfect, since they are based on projections of the behavior of the organization to various variables, so it is necessary to constantly evaluate and adjust them when necessary.

6Clients Need AnalysisThe important thing is to consider all aspects that can influence business performance, both positively and negatively, as the company must be prepared to face, either a pick-up in demand and good management of additional revenues, sales and their impact on cash flow(Ho and Robinson, 2012).Planning how the organization's operations will be financed during a difficult time will be the key to its survival, hence the importance of having the finances in order to access funding sources.A notable factor is not losing sight of the company's overall financial landscape, getting too involved in small setbacks.Precisely from general planning must come the solution for the small stumbles that can representa bad sales season or a shake-up of the general economy or the financial markets.Do not leave out of the forecast any variable and develop strategies for all kinds of circumstanceswill also better prepare the organization to face them, giving you greater chances of success in the goals that have been established.The forecasting, management and control of the resources are the objectives of the financial planning in the company, that will guide the decision making.This will ensure that all such decisions, in all areas, lead to a common purpose and have the necessary financial backing to bring them to fruition(Swart, n.d.).

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Report on Sources of Finance in Firm
|28
|4817
|35

Retirement and Estate Planning - Assignment
|12
|2423
|16

Personal Wealth Management
|23
|4051
|133

Managing Finances and Budgets: Tips and Techniques for Effective Financial Management
|27
|3966
|350

(solved) Managing Financial Resources and Decision Making
|25
|5255
|266

MANAGING FINANCIAL RESOURCES AND DECISIONS TABLE OF CONTENTS INTRODUCTION
|27
|5899
|331