Fail to plan? Then plan to fail!

We can help with your financial planning needs.

Your financial plan should consist of a set of financial statements that forecast the resource implications of making your business decisions. For example, if you are deciding to expand by buying a new printing press, you will need to create a financial plan which considers the resources required and the financial performance that will justify its use. The financial plan will need to take into account sources of finance, costs of finance, costs of developing the project, as well as the revenues and likely profits to justify the investment.

Planning models can consist of thousands of calculations. Typically these plans will be constructed with the aid of forecasting models and spreadsheets that can calculate and recalculate figures such as profit, cash flows and balance sheets simply by changing the assumptions. For example, you may want to do one set of calculations for low, medium, and high demand figures for your printed products.

Long and short term plans

Financial plans are typically made out for a given time period, e.g. one, three or five years. The length of the time considered depends on the importance of projecting into the future and the reliability of estimates the further you consider the future. Long-term plans are created for major strategic decisions made by a business such as:

• take over and merger activity
• expansion of capacity
• development of new products
• overseas expansion

In addition financial planning can be carried out for shorter time spans. For example, annual budgets will be created that can be analysed by month and by cost centre. Short term financial plans provide targets for middle management and a measure against which actual performance can be monitored and controlled. In addition it is normal practice for a business to prepare a three- or five-year plan in less detail, which is updated annually.

A budget is a short term financial plan. It is sometimes referred to as a plan expressed in money - but it is more accurately described as a plan involving numbers. A cost centre is defined by CIMA as 'a production or service location, function, activity or item of equipment whose costs may be attributed to cost units'. For a printer, this is where the importance of your hourly cost rates fit in.

At Haybrooke Associates we have the experience to help you plan your business finances for optimum effect and with absolute transparency. Call us today for a free, no-nonsense, confidential discussion.

Head office:
Haybrooke Associates Limited
15b Stoughton Road
Oadby
Leicester
United Kingdom
LE2 4DS

Telephone:
+44(0)116 2711000

Email:
postmaster@haybrooke.com

Website:
www.haybrooke.com

Main contact:
John Roche CEO
email or telephone 0116 2711000.