Business – A Profit And Loss Statement
Loss and insolvency is the last thing a business would want to fall for. However, the number of companies going up is increasing and so is the number of firms closing down. Besides money, planning is one of some important ingredients it takes to survive and thrive in the competitive market. It is the very first step to consider in business besides setting goals. Business management needs plans to determine proper actions and activities that would enable the organization to succeed and fulfill its aims. Equally important is the management of finances upon which the company runs economically. The point of significance is financial planning which is an integral part of the management process of every corporation.
This implies the preplanning of organization’s future operations by preparation of financial blueprints. The chief criterion behind this process is to safeguard funds, to be available all time. Lack of funds will disable the organization from continuing its plans, further, which it would be unable to survive in the challenging market. However, if excess resources are flooding into the business, it might lead to wasteful expenses. The ultimate aim is to smoothen the process of maintaining the flow of funds.
Further functions of financial planning are:
- It prepares the business from future shocks or surprises. The company is eventually able to tackle ambiguous aspect of accessibility of funds and resources. By organizing a plan beforehand, the management is able to take steps and find solutions for probable outcomes be it favorable or not.
- It plays a prominent role in coordinating various tasks of business like sales, production functions and others.
- Detailed schemes of activities reduce wastage of surplus resources, duplication of efforts and breaks in planning.
- Financial planning is the bridge between investment and financing decisions.
All these varied functions are under constant supervision by the manager. Jay Blackmore, a corporate finance management specialist agrees with the utility of financial planning as necessary for successful business. He has observed many companies that realize the planning’s importance when it is too late to recover from grave losses. Jay Blackmore as a professional has worked with varied patrons from Canada and United States, and his years of experience state that scheming is the basic of future foundations and success.
Professionals like him are also vital for the system as they direct, manage and supervise all the activities and functions. There is the mind behind the schemes, ideas that take shape by the coordinated work of many hands in the firm. Together they all make the business develop. Every worker has its own value in the organization. However, a manager is the driving force that determines how to develop ideas into actions, protect the interests of shareholders, decisions of where and how much to invest, supervise employees ad keep track of the activities, examination of market trends for further expansion of the organization. Financial professionals like Jay Blackmore make economic decisions for the overall development of the business.