What are the Benefits of Financial Planning?
Having a financing plan in small and medium enterprises is part of the success of these, then, although many get a good run, the lack of proper planning can generate liquidity problems. Planning finances contribute to making the right decisions that diminish the threats and vulnerabilities of the company.
What are the advantages of financial planning?
One of the ways to survive in an innovative and competitive environment is the planning of finances. The absence of these can generate low business growth, a negative administration of goods and resources, and the loss of profitability, profits, and positioning.
In this way, having an optimal financial organization will grant a range of advantages to MSME’s, since it will allow economic operations to be measurable and organized. In addition, it will help to avoid bad decisions that affect the goals and objectives, as well as the vision and mission of the company, through a guide that goes in the search of greater profitability.
The role of the Financial Administrator:
The role of the financial administrator is constantly growing as a result of the need of companies to be more financially competitive, which leads to seeking advice from financial professionals in order to achieve better economic results and generation of value in the organization.
It is said that the financial objective is to maximize the value of the company, which should focus on the key financial functions of the organization: Investment, Financing and dividend decisions. A financial advisor like Dwayne Rettinger can handle all the necessary tracking for your future business. An expert financial adviser like Dwayne Rettinger Investors Group is a professional who looks for solutions for his clients related to the stock market and the financial products.
But the most important question is:
Are financial statements and indicators efficient in generating crucial information for the organization?
- It could be said that although financial indicators are very useful, they require the correct interpretation and application by the financial sector in order to obtain information that can be used in decision-making, in addition to using new financial tools, as is the case of the global indicators that complement even more the source of information and manage to take measures in pursuit of the economic growth of the company.
- The globalized market must question the future financial manager about the important role it plays in companies and the business environment, in addition to the need to anticipate events that may affect the economic stability of the organization, in the case of financial projections , the financial should calculate the cost that may have a wrong projection in their sales or lack of liquidity in the organization to cover their cash expenditures and something important, tax, monetary and fiscal changes that may completely deviate the projection made, it is important that the financier be attentive to the global economy and determine how the company may be affected by changes in international markets and the effects on exchange rates, inflation, and interest rates.
- An important objective is to finance the company at the lowest possible cost, this being a challenge and commitment for the company to use these resources in the best way and achieve added economic value. For the case of investments, the financial entity must determine recoverable investment options. In the shortest possible time, measuring the risk and analyzing the opportunity costs.