Corporate Financial Planning is determining Company’s Financial Goals and needs and ways to achieve them while Personal Financial Planning is determining the Personal Financial Goals and plans to meet the desired goals.
A corporate financial plan is built by experts with a lot of discipline and teamwork. Similar resources may not be available for a personal financial plan but the same concepts can be used to make one’s personal financial plan more robust and effective.
Just like a corporate financial plan, your personal financial plan can also help analyse the cash flows, monitor the finances and track the progress. It assists you preparing the forecast, take advantage of good investment opportunities at right times warns for signs of trouble and take cautious steps.
You need to prepare a strategic plan which lays down your desired accomplishments over a certain time frame. Also determine the financial impact in next two to three years.
Forecast income and expenditure, merge it with the current financial statement to identify the effect on the present finances and establish funding needs of the company.
Financial projections and current financial statements will help the lenders to analyse the funding they can provide based upon various future financial ratios.
Economic downturns and business turmoils cannot be overlooked. A good corporate financial plan ensures building up a cash reserve to face the tough times.
Corporate Financial Plan assists you in monitoring the progress by comparing the actual with projections and making timely changes if required.