FINANCIAL

OPERATIONS
 Business Plan
 A business plan is a formal written document containing
business goals, the methods on how these goals can be
attained, and the time frame within which these goals
need to be achieved.
 It also describes the nature of the business, background
information on the organization, the organization's
financial projections, and the strategies it intends to
implement to achieve the stated targets.
 In its entirety, this document serves as a road map that
provides direction to the business.
 FINANCIAL MANAGEMENT

 Financial Management means planning, organizing,

directing and controlling the financial activities such as
procurement and utilization of funds of the enterprise.
Objectives of Financial Management
 The financial management is generally concerned with
procurement, allocation and control of financial resources
of a concern. The objectives can be-
 To ensure regular and adequate supply of funds to the
concern.
 OBJECTIVES OF FINANCIAL
MANAGEMENT CONT.
 To ensure adequate returns to the shareholders which will depend
upon the earning capacity, market price of the share, expectations of
the shareholders.
 To ensure optimum funds utilization. Once the funds are procured,
they should be utilized in maximum possible way at least cost.
 To ensure safety on investment, i.e, funds should be invested in safe
ventures so that adequate rate of return can be achieved.
 To plan a sound capital structure-There should be sound and fair
composition of capital so that a balance is maintained between debt
and equity capital.
 FINANCIAL ACCOUNTABILITY

 Financial Accountability means of keeping citizens informed

about the city’s financial position, financial performance,
service effort and accomplishment
 Financial Accountability tells you what policies your board
should adopt or has adopted to meet their responsibility for
ensuring that the organization they govern is financially
sound.
 They would then hold those who manage the organization
accountable for implementing these policies. Policy areas
covered: Finances, Budgets, Asset Protection and Major Risks.
 FINANCIAL PROCEDURES

 Financial Procedure is a set of instructions that any

stakeholder, including new members of the committee
or staff, can use to find out exactly: what tasks need to
be done; who will do these tasks; and who will ensure
the tasks are done properly.
 It is important that the agreed financial procedures are
written down so that there is clarity.
 WHAT IS BUDGET?

 A budget is a financial plan for a defined period, often one

year. It may also include planned sales volumes and revenues,
resource quantities, costs and expenses, assets, liabilities and 
cash flows. Companies, governments, families and other
organizations use it to express strategic plans of activities or
events in measurable terms.
 A budget is the sum of money allocated for a particular
purpose and the summary of intended expenditures
along with proposals for how to meet them. It may
include a budget surplus, providing money for use at a 
future time, or a deficit in which expenses exceed 
income
 5 STEP PROCESS IN BUDGET
DEVELOPMENT

1. Assemble a budget team

2. Create a budget calendar
3. Prepare for budget process
4. Build the budget
5. Monitor the budget
ASSEMBLE A BUDGET TEAM
2. CREATE A BUDGET CALENDAR
3. Prepare for budget process
Set financial goals
Gather data and build budget template
Forecast current year results
Conduct team kickoff meeting
4. Build the budget
Budget expenses
Budget revenues and plan alternate scenarios
Forecast cash flow
Secure board approval
5. MONITOR THE BUDGET
END OF
SLIDES