The Advantage Of Financial Planning

Every business needs to think about future developments unless those thoughts are structured in the first phase and elaborated to the last detail. These as yet vague ideas are characterized as visions. Visions are later given the correct ideas – the goals of the companies that the founders want to achieve. Visions are made concrete by translating into the company goals and in written form are entered into a financial plan. The financial plan covers all areas of the company: product, marketing, sales of goods, staff, finance, etc. It helps to identify relationships and problems on time. In the absence of a carefully designed financing plan, there is a danger that decisions will be made based on the current situation and not in the light of long-term goals – we are very aware of this at Lavi CPA.

Financial planning translates the long-term goals formulated in the business plan into figures and forecasts revenue, expenses, and profits. It also deals with future assets and liquidity. Furthermore, financial planning obliges business management to pursue the future of the firm.

Financial planning aims to develop and present activities and sources of financing, which is shown in a monetary unit. “The index of total business activity are revenues, expenses, and financial results that are summarized in the periodic income statement,” says Malcolm from Lavi CPA. Planning for expenses and incomes is not enough on its own. The company must plan the total and additional needs for its business assets without which the financial result cannot be realized.

The annual Lavi CPA financial plans will include all of the necessary planning that is needed.

Lavi CPA Financial Planning Offers The Following Benefits:

  • Only with the financial planning done in advance, the planned tasks can be compared continuously with the business reality (real-planned comparison).
  • The problems are recognized on time, and countermeasures can be taken immediately.
  • The planning period provides an opportunity to check the current situation in the company well in terms of “self-control.”

Without strict control, financial planning can make little sense, and without the use of financial planning, your business can make no sense. Only through constant checking of real values ​​and all planned tasks can certain deviations be recognized in time, and corrective measures to be taken. If deviations from the planned conditions occur, it is necessary to speak with certain advisers to find possible causes of deviations and to work on their correction. Lavi CPA deals with comprehensive financial planning.

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