Guide to Business Financial Planning

Create the right business financial plan for your company

By Kendra Dahlstrom

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Business financial planning is an essential element of a business plan. A well organized financial plan attracts potential business investors and gives your company economic focus. It allows you to assess the current financial situation while forecasting where you will be in the future. If the forecast is appealing, maintain current goals. If the company's future monetary situation looks daunting, however, make adjustments before it becomes a problem.

There are three elements of business financial plans:

1. An income statement

2. Cash flow projections

3. A balance sheet, which financial consultancy services can prepare for you

It is up to your company to decide if it makes more sense to draft the financial plan yourself or hire a financial services consulting firm to do it for you. While performing your own business finance planning is economically more feasible, it takes time and energy. Usually, smaller companies can get by organizing their own financial plans. Larger companies and corporations find it more beneficial to seek outside financial management consulting services.

Action Steps
The best contacts and resources to help you get it done

Utilize free business financial planning software

Small companies who wish to do their own financial consulting should take advantage of online software. While you can usually purchase similar software at the store, it is quicker and easier to download directly from the Internet. Many times you can find free software or free trials for your business needs.

I recommend: PlanWare by Invest-Tech Limited has free financial projection, cash flow forecast and business plan software. They have easy-to-use templates that save time and energy. Microfin, another free business financial planning software program, allows you to develop finance strategies and analyze financial projections.

Explore low price business financial planning software

While there are free financial planning software sites online, sometimes you get more when you pay a bit of money. Some have low-cost downloads that have customized financial plans tailored to your line of business.

I recommend: Acoll Software's Omega Enterprise Manager provides software which can create sales summaries, cost summaries and profit margin sheets. PlanMagic Corporation, another software source, offers financial planning software tailored to various types of businesses from construction to coffee houses.

Hire a professional financial consulting company

Large companies and corporations should seriously consider hiring an outside consulting firm to handle financial planning. There is simply a larger volume of information and data necessary to run a sizeable company. Rather than sort through your own financial information, you may find it a better investment to hire a professional.

I recommend: Ameriprise Financial, Inc. prepares your business financial plan and assists your employees with personal financial goals. Wachovia Corporation, another highly esteemed financial management consulting firm, also provides business and personal financial needs.

Tips & Tactics
Helpful advice for making the most of this Guide

Corporate financial experts agree that if your business credit score is lower than 70, adjust your business financial plan to take your score above 75.

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