Do you know how many expenses you have in the company and how much you have to sell in order not to end the month with a red balance sheet? If the answer is no, it’s time to make one Economic and Financial Plan This allows your organization to anticipate problems and set appropriate goals and strategies for your financial reality.
João Carlos Natal, a consultant with the Brazilian Support Service for Micro and Small Businesses (Sebrae), explains that the economic and financial plan helps the company to see its financial operations in a clear way yearly and build on that Countingnot on guesswork.
The economic and financial plan helps to set goals
Prepare a business budget all inputs and outputs that the company will have in the coming months allows the manager to know exactly how much to sell to cover all his expenses, making it easier plan actions and set business goals.
“By becoming aware of the challenges in your company, you can establish yourself business goals to achieve the necessary level of accounting, to cover expenses and to generate profits. take action Based on numbers and planning, it makes life easier for the company as there is time to make the necessary corrections to achieve the goals,” says Natal.
Over the weeks, the company can monitor the budget reevaluate Constantly on the way to goals, actions and strategies when necessary.
«If I spend more on an item than I had planned, I have to look where I should get these values from to cover that. If I don’t reach the goal, what efforts and actions do I need to make to reach it? you must have one foresight of things,” he says. «The businessman stops being the firefighter who only reacts and becomes active».
The economic and financial plan helps to overcome the scarcity of resources
The preparation of an adequate financial and economic plan begins with the Separation of the natural person from the legal person. “It often happens that the employer mixes the two accounts and the company uses personal checks indefinitely. That makes the life of the company extremely difficult,” says Natal.
The next step is to determine if the plan provides for this Lack or excess of resources. In the first case, it is necessary to review the company’s strategies so that your goals are met. For example renegotiating appointments with suppliers.
“Many entrepreneurs assume that a Financing from banks without drawing up an appropriate economic and financial plan. If the ability to pay today does not cover what was previously agreed, this will damage your cash flow,” explains the consultant.
With planning it is possible to a correct stock valuation, which directly affects the distribution of the sales price of the company’s products. “For those who are just buying, the stock takes longer to sell and the money mobilizes the stock instead of being in cash flow,” he says.
A well-done planning allows the company to know its capital handling capacity, Among other things, this leads to better planning of purchases, a reduction in sales receipt times and better negotiation of supplier payments.