FINANCIAL STATEMENTS

Juneja (2016) defines Financial Planing as a process of estimating the capital required and determining
it’s competition. It is the process of framing financial policies in relation to procurement, investment and
administration of funds of an enterprise.

THE FINANCIAL PLANNING PROCESS

The following are the PROCESS in the financial planning. The process starts with the client
information gathering. Remember that as a future Financial Manager, without information, you cannot
decide or make accurate decision. Next in line is to establish Goal and Objectives. This sought to answer:
“What is the company’s goal?” Do they want to become the most expensive and prestige company or
they want to become a more relatable company by the poor and middle class? The third one is the
analysis of the financial situation. Does your objective meets your client demand and wants? Does you
client information and goals are aligned? If no, adjust. If yes proceed. And that how analyzing financial
situation happens. Weighing the facts and the goals from procedure 01 and 02.
Next process is to present it to the Board for approval followed by implementing a plan.
Afterwards, monitoring process must be implemented to ensure that the plan was still being practiced.
Example:
Assume selling price is Php 100/unit sales for each month that has expected to be collected
as follows:
Month of sales: 20%
A month after sales: 50%
2 months after sales: 30

GIVEN ITO

UNITS X UNIT SALES

SALES X MONTH OF SALES

SALES X MONTH AFTER SALES

SALES X 2 MONTH AFTER SALES

That in all things God may be Glorified”