Planning and implanting Essay

Submitted By sshaimeen
Words: 715
Pages: 3

Planning and implanting

1. Explain how each of the above points can influence the financial needs of a business.
First of all the size of the business, is a crucial impact to the state of the financial side of the business. A small business, would obviously mean less costs , whereas a huge business would mean more due to the size. Future plans for growth and development , strongly contribute to the financial needs of a business as to grow you need to expand and in order to expand you need to spend money.

2. Outline why financial statements are necessary for
a) the business itself:
Because they keep track on how much money is being spent on what on. It reveals how well the money is being used and well it isn’t being used.
b) potential investors: financial statement will prove to potential investors how well money is used in the business and overall how well the business is going in terms of earning profits , what theyre loosing etc.

3. outline the three types of budgets that are used.
Three types of budgets that are used include operating budgets, project budgets and financial budgets.

4. analyse the importance of budgets in the planning process.
A budget is an important part of the planning process and various factors need to be considered in preparing it such as: review of past figures and trends, and estimates gathered from relevant departments in the business; potential market or market share, and trends and seasonal fluctuations in the market; proposals to alter price or quality of products; current orders and plant capacity.

5. explain why it is important to ensure that data recorded is accurate and reliable.
It is important to ensure that data is recorded and accurate and reliable because it comes in use in the future , for accounting, general information , etc.

6. outline how the double entry system of accounting can be used to minimize errors.
Because of you re add it , and its not the same as the one you added before its obvious that someone has made a mistake.

7. Explain why each of the above points need to be considered when assessing the financial risk for a business.
The points all must be considered in order to minimize the financial risk.

8. List the financial problems and losses that can occur for a business.
Financial problems can be caused by both management and employees. Financial controls ensure that the plans that have been determined will lead to the achievement of the business goals in the most efficient way.

9.list the methods that can be used to control or minimize financial losses.
Clear authorization and responsibility for tasks in the business, separation of duties- for example one person is responsible for ordering and another for receiving inventories; one person writes the cheques and another