...Chapter 1: The Financial Planning Process According to the lecture, there are five steps in the Personal Financial Planning Process. Applied to reality, I can use the article Get Smart about College to demonstrate five necessary steps that people choose to go colleges to achieve their goal. As first, parents and students have to go through first step which is analyzing their current financial position. Moreover, they need to think about what school to attend and how to pay the bills. Families should be sure to include good estimates of the non tuition costs also such as housing, food, books, transportation and more. They also shouldn’t rely too much on the budgets the schools provide. As moving toward to second step which are developing short-term and long-term financial goals, many families fail to focus on the short term thinking only. People tend to overvalue current consumption relative to future opportunities. Some wonder: “it’s always difficult to pay now or soon for benefits we won’t enjoy until years in the future” or “monthly payments are precise while the numbers attached to a better career in the future are vague and uncertain”. College is an investment and students are investing in themselves, so families should look at choosing and paying for a college like starting a small business. Families should also think carefully about situation when they are making estimates of future earnings. Therefore, families should think long term about all earnings such as estimating...
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...STRATEGIC & FINANCIAL PLANNING OF FROEDERT HOSPITAL Strategic & Financial Planning of Froedert Hospital [Name of the writer] [Name of the institution] [Page Break]Strategic & Financial Planning of Froedert Hospital Thesis Statement The purpose of this assignment is to analyze the financial & business administration of Froedert Hospital to develop a draft action plan to improve the business of the organization. (Suzanne, 1993) Introduction Produce regular performance & financial plans is an essential component of planning & analytical work of the companies. Operational planning can reduce irrational use of funds of the company by the timely planning of business operations, inventory, financial flows & monitoring their actual implementation. Operational planning is still a weak point of business management of the U.S. health care organizations. About the Organization Froedtert Hospital is a 500-bed academic medical center containing workforce being provided by the staff of The Medical College of Wisconsin. The hospital has been honored with the prestigious Magnet title given by the U.S. Nurses. It works as an eastern Wisconsin recommendation center for higher remedial practice care consisting of thirty seven areas of expertise & subspecialties. (Suzanne, 1993) Objectives of Strategic & Financial Planning The...
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...FINAL 1. Financial Planning What are the three most valuable concepts you learned about the financial planning process? What actions will you take in your personal life based on what you have learned? Financial planning is a systematic process that considers the important Elements of an individual’s financial affairs in order to fulfill financial goals (Pg.5). The financial planning process involves six steps translating Personal financial goals into specific plans and strategies, and implements them and then uses budgets and financial statements to monitor and evaluate and revise plans and strategies as needed. The three most valuable concepts that I learned about the financial planning process include defining goals, creating a plan, implementing plan through action, and evaluation. They that time that it is impossible to an actively manage your Financial Resources without financial goals. Defining goals is Crucial after defining these goals you must formulate and develop plans and strategies in order to reach these goals. These plans goals strategies all need to remain realistic and attainable. It’s important to consider priorities and can raise them into long-term and short-term goals. Ann’s and strategies which to me is the most difficult because it requires control and monitoring. Spending money wisely and would be an example of implementing financial plans and strategies in order to reach financial goals. 2. Credit In what ways do you use credit...
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...Relationship between Strategic Planning and Financial Planning Abstract: A major part of a company's success is planning. It is a process that at best helps the firms avoid uncertainty into the future backward. The companies use two types of planning-- strategic and financial planning. Strategic planning is important for strategic management of companies. Top-level managers plan not just in the context of the current competitive environment but also in the future competitive environment. What future will look like? To try to anticipate this, managers can use scenario planning techniques to plan for different possible futures (Hill, C.W.L. and Jones, G.R. 2009). Lack of effective financial planning demonstrates financial distress and failure for the firm. Financial planning establishes course of action for change and growth in firm (Ross, A.S. et al. 2011). Introduction: Strategic planning is the process of determining the path a company takes, the goals for the business and how to achieve successfully what the company wants. It also encompasses a broader concept of a business plan where projections to be made go beyond financial planning and current market forecasts (Cantoria, s.c, 2011). Whereas financial planning manages the finances over time in such a way that one can meet his/her business needs. The purpose of strategic planning is to give a road-map for the progression of the business. With a good business road map, it is possible to eliminate areas of inefficiency. Ultimately...
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...Personal Financial Planning “Personal financial planning is only applicable to those nearing retirement”. How true is this statement? For instance, personal financial planning is only suitable for those who are nearing retirement and not for other age groups of people. We do not really agree with that statement. Because people in different lifecycle are indeed requiring different kind of needs and wants in their life, thus, financial planning is important for everyone who wishes to achieve their financial goals. In addition, when there are existence of needs and wants in our life, everything would cost us money because money is the medium of exchange in this era. Due to this matter, meeting the rising cost of living and improving the standard of living would be a problem when we do not plan our financial side carefully. Everyone wants to have a luxury life, good car, delicious meal and many mores but without a proper planning, it is impossible for anyone to achieve these goals. Therefore, a personal financial planning is vital especially for those who started to join the work force and also those who are retiring. What is personal financial planning mean to you? Personal financial planning can be defined as a systematic process that considers important elements of an individual's financial affairs in order to fulfill the financial goals. Basically it also includes the well preparation of the cash flow movements, priority allocations on the needs and wants, and many more. ...
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...Abstract Financial planning and budgeting has become a powerful tool of any company’s financial management. Planning and budgeting is an issue that should be solved in a complex. Therefore, this final English research paper highlights three main approaches absorbed: theoretical, practical, and analytical. Theoretical knowledge cannot be applied to practice without clear understanding of business, a feeling about the actual circumstances. Practical knowledge cannot be applied to professional tasks without analytical approach. This skills and approaches are presented and proven in this research. Having faced planning and budgeting process of middle-sized company, it has been noted that some issues of this important activity absence clarity, confidence, and flexibility. In order to optimize planning and budgeting process a thorough examination has been prepared in this research paper. The Company where experience has taken place is Levi’s XX that stands for Levi’s Vintage Clothing. Therefore, the industry examined is apparel, and as a market is taken the whole Globe. Table of Contents Abstract 2 Introduction 4 • The purpose of the study 4 • The main conceptual problem 5 Methodology 6 1. Essence and role of financial planning and budgeting 7 1.1 Planning and budgeting role in company’s structure 7 1.2 Purpose of budgeting 7 2. Company profile, industry and market description 10 2.1 Levi’s XX story 10 2.2 Company’s structure 10 3. Principles and objectives...
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...a profit; accounting is an important part in helping understand how profits and expense amounts are derived. One form of accounting I will focus on is managerial accounting or also known as management accounting. Managerial accounting is the process of identifying, analyzing, recording and presenting financial information that is used for internally by the management for planning, decision making, and control. Managerial accounting provides economic and financial information for managers and other internal users (Managerial, 2005). When you tell people about managerial accounting, the first thing they ask is “What’s the difference between managerial and financial accounting?” There are both similarities and differences between managerial and financial accounting. The major similarity each field shares, is that they both deal with the economic events of a business. As an example, determining the unit cost of manufacturing a product is part of managerial accounting. Reporting the total cost of goods manufactured and sold is part of financial accounting (Managerial, 2005). Managerial accounting provides the information to people with an organization while financial accounting is mainly for the outsiders, like shareholders. Also financial accounting is required by law, managerial accounting is not. To sum up the popular question, managerial accounting is...
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...1 The Financial Planning Process 1.1 Facing Financial Challenges 1) Once a sound financial plan is in place, there should be no need to ever change it. Answer: FALSE Diff: 1 Topic: The Financial Planning Process AACSB: 3. Analytical skills 2) When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid. Answer: FALSE Diff: 2 Topic: Minimization of Taxes AACSB: 3. Analytical skills 3) Being financially secure involves balancing what you earn with A) your investments. B) what you spend. C) your retirement plans. D) your current level of debt. Answer: B Diff: 1 Topic: Financial Planning AACSB: 3. Analytical skills 4) In order for your financial plan to be realistic and attainable it needs to be based upon your A) budget. B) income level. C) number of tax deductions, exemption, exclusions, and credits. D) balance sheet. E) none of the above Answer: B Diff: 2 Topic: Financial Planning AACSB: 3. Analytical skills 5) Personal financial planning can help you to A) deal with unplanned health issues. B) minimize your tax payments to Uncle Sam. C) minimize your chances of personal bankruptcy. D) have enough money for a comfortable retirement. E) all of the above. Answer: E Diff: 2 Topic: Financial Planning AACSB: 3. Analytical skills 6) What are common factors found in an effective financial plan? A) Effective financial plans should...
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...Assignment Evaluation of the Planning function of Union Assurance PLC MBA 12/3103 P. Rajan Group B Course : MBA 501: Managing Organisations Instructor : Dr. A. Dharmasiri Term : January - March 2012 Postgraduate Institute of Management University of Sri Jayewardenepura Declaration I am fully aware of the content under plagiarism stated in Chapter VII of the PIM Student’s Handbook, and I hereby declare and affirm that I have strictly observed the law relating to intellectual property, copyright and plagiarism in this exercise. Pratap Rajan Name Signature Date INTRODUCTION The purpose of this report is to document and critically evaluate the planning function of an organisation and to recommend improvements in the process. The organisation selected for the purpose of this assignment is Union Assurance PLC. Union Assurance PLC is a composite insurance company transacting both General and Life Insurance business and is currently the fourth largest insurer in Sri Lanka in terms Gross Written Premium. Union Assurance PLC (UA) is a subsidiary of John Keells Holdings PLC (JKH), one of the largest conglomerates in Sri Lanka. THE PLANNING FRAMEWORK OF UA The Vision and Mission statements of UA are as follows: Vision: To be the most sought after provider of insurance solutions Mission: To provide protection, financial security and create wealth for our...
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...Financial planning Process • Step 1: Determine Your Current Financial Situation • In this first step of the financial planning process, you will determine your current financial situation with regard to income, savings, living expenses, and debts. Preparing a list of current asset and debt balances and amounts spent for various items gives you a foundation for financial planning activities. • Step 2: Develop Financial Goals • You should periodically analyze your financial values and goals. This involves identifying how you feel about money and why you feel that way. The purpose of this analysis is to differentiate your needs from your wants. • Specific financial goals are vital to financial planning. Others can suggest financial goals for you; however, you must decide which goals to pursue. Your financial goals can range from spending all of your current income to developing an extensive savings and investment program for your future financial security. • Step 3: Identify Alternative Courses of Action • Developing alternatives is crucial for making good decisions. Although many factors will influence the available alternatives, possible courses of action usually fall into these categories: • Continue the same course of action. • Expand the current situation. • Change the current situation. • Take a new course of action. • Not all of these categories will apply to every decision situation; however, they do represent possible courses...
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...Axia College Material Appendix B Personal Financial Planning Worksheet Directions: Based on your readings and discussions in class this week, answer the following questions completely. 1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called: a. Developing goals. b. Personal financial planning. c. Collecting financial information. d. Personal finance. The answer is B, It prepares you for the future and your financial needs. This includes in it developing goals, and more so the answer is B. 2. Which of the following is not one of the five major steps of the financial planning process? a. Analyze your current finances. b. Establish and implement your plan. c. Collect and organize your financial information. d. Reevaluate and revise your plan as needed. The answer is C, this is not a major step of the financial planning process. 3. Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development? a. Teenage years b. Between your 50s and 60s c. Late 20s through your 40s d. During retirement The answer is C, This is where everything most of the time begins. At this age more things start to happen in our lives and we start to think about or focus on all of these things. 4. Which of the following are some benefits of having...
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...Health Care Budget Effective financial management is the basis of thriving health care organizations. Organizations must make good investment decisions based on objective analysis (Healthcare Financial Management Association [HFMA], 2005). Integration of financial management principles provides decision makers with guidance to make capital decisions maximize mission-based benefits at effective costs (HFMA, 2005). An operating budget is the statement of profit and loss for the entire organization. Various health care entities prepare operating budget for the following year for discussion and approval by top management (Academic Writing Tips, 2011). At the end of the year, departmental managers provide an account for the previous year’s financial performance (Academic Writing Tips, 2011). Effective Financial Management Practices in Creating and Monitoring a Budget Effective financial management is useful when creating and monitoring a budget. The budget must include data relevant to the organization. An operating budget is a profit and loss statement of projection. The budget must include estimates of revenues and future expenses. Financial managers should present the operating budget with the correct schedule. Leaders must present financial statements such as the Statement of Cash Flow, Statement of Revenue and Expense, and Balance Sheet with the operating budget as supporting documentation explaining the financial practices of a company (Academic Writing Tips, 2011)...
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...Axia College Material Appendix B Personal Financial Planning Worksheet Directions: Based on your readings and discussions in class this week, answer the following questions completely. 1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called: a. Developing goals. b. Personal financial planning. c. Collecting financial information. d. Personal finance. 2. Which of the following is not one of the five major steps of the financial planning process? a. Analyze your current finances. b. Establish and implement your plan. c. Collect and organize your financial information. d. Reevaluate and revise your plan as needed. 3. Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development? a. Teenage years b. Between your 50s and 60s c. Late 20s through your 40s d. During retirement 4. Which of the following are some benefits of having a college degree that can affect your financial planning? a. The potential to make a higher salary b. Jobs with retirement plans and benefits c. The ability to receive promotions and wage increases d. All of the above 5. Which of the follows elements of a comprehensive financial plan discuss analyzing future needs, such as saving for retirement or college funding for dependants? a. Building wealth b. Securing basic needs c. Establishing a firm foundation d. Protecting wealth and dependants 6. People...
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...UNIT-I Unit I: Nature of Financial Management: Meaning – Nature – Objectives – Scope- Functions of Financial Management – Financial forecasting – Financial Planning – Time Value of Money (NP) Nature of Financial Management: Meaning: Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Nature Scope/Elements 1. Investment decisions includes investment in fixed assets (called as capital budgeting).Investment in current assets are also a part of investment decisions called as working capital decisions. 2. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. 3. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two: a. Dividend for shareholders- Dividend and the rate of it has to be decided. b. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise. Get MBA study materials, articles, order business templates and stock market updates from or http://www.easymbaguide.in/ or www.easymbaguide.jimdo.com or www.easymbaguide.blogspot.com. Give your valuable feedback...
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...Excellence in Financial Management Course 2: Financial Planning and Forecasting Prepared by: Matt H. Evans, CPA, CMA, CFM This course provides a basic understanding of how to prepare a financial plan (budgeted financial statements). This course will also discuss some of the problems associated with budgeting along with "best practices" in budgeting. This course is recommended for 2 hours of Continuing Professional Education. In order to receive credit, you will need to pass a multiple choice exam which is administered over the internet at www.exinfm.com/training Revised March 2000 Chapter 1 The First Steps Introduction Financial planning is a continuous process of directing and allocating financial resources to meet strategic goals and objectives. The output from financial planning takes the form of budgets. The most widely used form of budgets is Pro Forma or Budgeted Financial Statements. The foundation for Budgeted Financial Statements is Detail Budgets. Detail Budgets include sales forecasts, production forecasts, and other estimates in support of the Financial Plan. Collectively, all of these budgets are referred to as the Master Budget. We can also break financial planning down into planning for operations and planning for financing. Operating people focus on sales and production while financial planners are interested in how to finance the operations. Therefore, we can have an Operating Plan and a Financial Plan. However...
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