Importance of financial planning, budgeting as a tool
Not what you're looking for?
The need to identify shortages and surpluses e.g. cash budgeting; implications of failure to finance adequately; overtrading.
Purchase this Solution
Solution Summary
The 613 word solution includes a comprehensive discussion of planning and budgeting in a business including a 7 point list of major reasons for financial planning.
Solution Preview
One of the more important reasons for a large percentage of new small business failures relates to the lack of cash, the lack of cash flow planning and the lack of cash budgeting. So often individuals with an idea or a talent start a business but they neglect to plan or consider the necessity of planning. It's been said that to fail to plan is a plan to fail.
Following are short discussions and definitions of each topic in the unit content:
Shortages could relate to insufficient product to sell, or insufficient cash to buy the product to sell. Shortages could mean lack of cash to pay bills or debt or lack of cash or resources for expansion.
Surpluses could mean too much inventory that is costly to hold, or cash surpluses which require investment to produce a return on assets.
Cash budgeting is a systematic method to plan for the sources and uses of cash usually on a ...
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.