1. 5.1d Financial Management
5.1 Business
5.1d Financial Management
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2. Financial Spreadsheet
Financial plans can act as a benchmark for measuring actual performance. Well prepared plans contribute to achieving short and long term goals, making decisions, growth in profit, directing finances in the correct direction, minimising risk and financial security.
A financial plan can be very comprehensive and intricate because different types of budgets and plans are used to create them:-
operational plans
short term plans/budgets
long term plans/budgets
cash flow projection
key performance indicators (KPI’s)
spreadsheet financial projections
KPI’s used in financial planning act as indicators for income, expenditure, productivity, waste and production, these are discussed further in later sections of the workbook.
Financial plans also help determine the financial management approaches used. The size and structure of a business can determine who performs what activity in financial management which will involve working with the business’s financial information (reconciling, analysing, reporting) and processing transactions.

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