Business Finance

Quarter 3 Week 3
Day 1 – 5
Prepared by: Gwen A. Galvez
Balugo NHS-SHS

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Learning Competency:
The learner …
•identify the steps in the
financial planning process.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Objectives :

• Knowledge : identify the planning process;

• Skills: enumerate the steps in financial planning
process; and
• Attitude: appreciate the importance of financial
planning process.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Review Question/s:

•What is the flow of funds?

•Give at least three examples
of financial institutions.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Pre-assessment:
Answer the following. Use √ is the statement is True
and X if otherwise.
• 1. Contingencies are also considered in planning.
• 2. Top management are responsible for tactical
planning.
• 3. Short-term plans will translate into long-term plans.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Activity:
list down at least three long term goals and its
Direction:
corresponding short-term goals.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Discussion:
What is Financial Planning?
• Planning is a systematic way of deciding about
and doing things in a purposeful manner.
• It is not merely looking up for things to happen
next, but it deals with many factors that an
organization must foresee in order to meet its
short-term or long-term goals.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Discussion:
What is Financial Planning?
• One of the most important planning methods that
an organization must look into is financial
planning.
• Financial planning is the process of assessing the
capital required, defining its composition and the
process of setting up financial policies regarding
purchasing, administration, and investment of funds
of any business.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Why is There a Need to Plan?
The following are the objectives of financial planning:
• 1. Determining capital requirements.
• 2. Determining capital structure.
• 3. Framing financial policies with regards to cash control,
lending, borrowings, and the like.
• 4. Ensures that the scarce financial resources are maximally
utilized in the best possible manner at least cost in order to get
maximum returns on investments.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Determining capital requirements.
• In a business organization, it is very important
to determine how much capital is required,
whether to start or to introduce new projects
in the organization. This will depend on the
costs of the
assets, expenses and
long-range planning.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Determining capital structure.

•This is the composition of

capital. This can be the relative
proportion of capital
required in the business.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
3. Framing financial policies with regards to
cash control, lending, borrowings, and the like.

• These are the rules set especially in terms of

borrowing money from financial institutions
so that the company can control and monitor
the liquidity of cash.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
5. Ensures that the scarce
financial resources are maximally
utilized in the best possible
manner at least cost in order to
get maximum returns on
investments.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Why is Financial Planning Important?
Financial planning is important because:
• 1. Adequate funds have to be ensured.
• 2. Financial planning helps in ensuring a reasonable balance
between outflow and inflow of funds so that stability is
maintained.
• 3. Financial planning ensures that the suppliers of funds are
easily investing in companies which exercise financial
planning.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Why is Financial Planning Important?
Financial planning is important because:
• 4. Financial planning helps in making growth and expansion
programs which helps in long-run survival of the company.
• 5. Financial planning reduces uncertainties with regards to
changing market trends which can be faced easily through
enough funds.
• 6. Financial planning helps in reducing the uncertainties which
can be a hindrance to growth of the company. This helps
ensuring stability and profitability in concern.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
How to Do Financial Planning?
• The financial planning process do have the subsequent steps:
• 1. Set goals or objectives. This is often vital in planning.
during this step you wish to line what's your dream goal or
what are the items that you simply wanted to realize within
the future.
• 2. Identify resources. Identifying resources means, you
would like to search out what are the available assets that you
just can use as your standing capital..
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
• 3. Identify goal-related tasks. These are the items that
you just have to waste order to attain your goals.
• 4. Establish responsibility centers for accountability
and timelines. You need to line deadlines and you
would like to be responsible along with your own
actions. you must take every action seriously, you wish
to be accountable to things that you just do, ensure that
this may lead you in achieving your long-term goal or
plan.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
• 5. Establish the evaluation system for monitoring and
controlling. Do forecasting or predicting the results of your
actions. You'll be able to use a chart and monitor your actions
and objectives. Set priorities and proper timeline to be
properly organized in achieving your goals.
• 6. Determine contingency plans. Contingency plans are
alternate plans. These are vital because not all the time plans
are successful. There are times that you simply fail in your
first plan, this can be the instant when your contingency plan
enters.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Developing Mastery:
Direction: Do the activity below. Accomplish this using a
clean sheet of paper.
• 1. Your sister is about to celebrate her 18th birthday next
month. You are tasked by your mother to be the events
coordinator of your sister’s birthday party.
• Required: Create a financial plan for your sister’s 18th
birthday using the steps of the financial planning
process.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Activity:
Direction:
• Using the steps in financial planning process, create
a personal financial plan for a young student like
you.
• Use a diagram representing the process.
• Write your financial plan in a clean sheet of paper.

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Application: Group Activity
Direction:
• 1. Using the steps in financial planning process,
create a personal financial plan for a young
student like you.
• Consolidate the individual output.
• 2. Use a diagram representing the process.
• 3. Assign somebody to report in front of the class.
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
 Rubrics:

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Summary Questions:

1.What are the objectives of financial

planning?
2.What is the importance of financial
planning?
3.Enumerate the financial planning process?
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Evaluation:

Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS
Department of Education
Schools Division of NEGROS ORIENTAL
MATHEMATICS