Why You May Want To Consider Hiring A CPA

Why You May Want To Consider Hiring A CPA

Effective management and rational business decisions making in the company is difficult to accomplish without planning. The most complex area of business planning is financial planning, and that’s what we are doing at Lavi CPA. That’s because the financial plan encompasses the activities of all functions in the enterprise as well as planning the overall business activity.

Financial planning is the specification of financial policy businesses through financial plans expressed in financial indicators for a specific period. The financial plan is an instrument of fiscal policy in which we synthesize the planning of the total financial resources of the company.

Financial planning in the company includes:

  1. A profit and loss plan that plans the financial result that arises as to the difference between revenue, and expense, that is expected rentability.
  2. Balance sheet plan to plan the volume and structure of assets and sources of funds needed to achieve financial results.
  3. A cash flow plan to maintain liquidity in the plan period, that is, all inflows and outflows of funds, as well as the possibility of financing liquidity during the planning period.
  4. The long-term investment plan envisages volume, structure, and time duration of investment, as well as the structure of financing of long-term investments.

With the help of Lavi CPA planning is the primary stage of the management process that involves a kind of mental process in terms of thinking about what is desirable to do and how it should be accomplished. The plan represents the concrete result of the planning and, therefore, understandable as tangible proof of thinking, detailing specifically the basic goals of the company. The financial plan is the final product of the financial process of planning that can be greatly influenced by its shape and content on the degree of success of financial management in the company.

That’s why Lavi CPA is a good choice for you.

The operational financial plan includes the forecasting of individual amounts of all financial transactions (inflows/payments / and outflows/payments/financial resources) whose execution is foreseen during the planned period.

The short-term (annual) financial plan is for determining the necessary financial means for the settlement of liabilities, and it includes one year (calendar or business).

A long-term (prospective or strategic) financial plan refers to projections of the long-term funding needed and the provisions of models long-term constructions.

A regular (current) financial plan (cash flow plan) refers to planning (projections) of cash flows over some time to provide the necessary financial liquidity of companies.

Extraordinary (specific) financial plans (investment plans) they are made irregularly, ie. on special occasions and with special tasks. Most often, these are specific financial plans that are mainly related to the establishment, integration, or rehabilitation of the company.

Special financial plans are one-off plans that are only assembled once during the “life” of the enterprise (for example, start-ups plan, ownership transformation plan for the company…).