The financial plan of a company includes the timing and
the amounts of funds, as well as the inflow and outflow of
money. Financial managers also forecast the economic
conditions, the company’s revenues, expenses and profits.
The plan starts and ends with the company’s objectives.
Managers review them and determine the funding they require.
Managers also compare the expenses involved and the revenues
expected. It helps them predict cash flow. Management plans a
strategy to make the ending cash positive, and accordingly
works out the way the resources should be allocated.
Resources are invested according to the strategic plan of a
company into materials and inventory, personnel and
advertising, etc. Managers are responsible for carrying out this
strategy, the whole process being supervised by the General
Executive and the Board of Directors of the company.
