Integrated financial planning is key for the business to achieve strategic objectives. This requires efficient organizational coordination to establish operational tasks that lead to an economic equilibrium in a determined period. If you recognize that this is the ideal path for your business, you need to know the steps to implement it in an efficient manner.
Key steps to execute integrated financial planning
Beyond cash flow, budgeting, and a balance sheet, integrated financial planning promotes generating favorable and concrete results. The efficient implementation of this strategy is aimed at influencing decision making to improve future forecasts related to cash flow and profitability of the business.
Because it is a custom, detailed, and organized process, a solution like Prophix serves as support for your CFO/comptrollers. and personnel. When you promote more participation, you can focus on the steps to reach your goals, that start by:
1. Strategic Planning
Based on the mission, vision, and values, you must establish a strategic plan of at least 5 years. This implies organizing decisions in the function of purposes and the efforts required and establish figures for their correct execution.
This phase requires a detailed evaluation of the historical and present results of the business. We recommend that you visit financial statements for the past 3 years to review KTNO, levels of debt, surpluses or deficits, income statements, and other indicators (EBITDA).
3. Medium term goals and plans
Here you proceed to define the administrative plans for 1 year, which requires a budget framework for the same period. With integrated financial planning, this referential process makes administration more agile and includes fundamental processes, commercial and financial aspects.
Elaborating this financial plan articulates monthly resources and operations to achieve more immediate objectives. Similar to the budget framework, it includes forecasts of sales and purchases, manpower, indirect costs, taxes, financial expenses, and investment evaluation.
5. Execution and Control
Budget execution helps to validate that the strategic and financial goals comply with what was established. Through a monthly analysis of differences, you can quickly correct and apply actions to follow the route that was traced out.
If your business requires the adoption of integrated financial planning with the support of Prophix, contact us. Our specialists will guide you about this process in order to deepen your implementation and discover the wide range of functionality of this tool.