820:. Financial plans are the entire financial accounting overview of a company. Complete financial plans contain all periods and transaction types. It's a combination of the financial statements which independently only reflect a past, present, or future state of the company. Financial plans are the collection of the historical, present, and future financial statements; for example, a (historical & present) costly expense from an operational issue is normally presented prior to the issuance of the prospective financial statements which propose a solution to said operational issue.
47:
872:
accountants. Normally, finance personnel study the data results - meaning what has happened or what might happen - and propose a solution to an inefficiency. Investors and financial institutions must see both the issue and the solution to make an informed decision. Accountants and financial planners are both involved with presenting issues and resolving inefficiencies, so together, the results and explanation are provided in a
164:
897:
When drafting a financial plan, the company should establish the planning horizon, which is the time period of the plan, whether it be on a short-term (usually 12 months) or long-term (two to five years) basis. Also, the individual projects and investment proposals of each operational unit within the
823:
The confusion surrounding the term "financial plans" might stem from the fact that there are many types of financial statement reports. Individually, financial statements show either the past, present, or future financial results. More specifically, financial statements also only reflect the specific
871:
The accounting and finance industries have distinct responsibilities and roles. When the products of their work are combined, it produces a complete picture, a financial plan. A financial analyst studies the data and facts (regulations/standards), which are processed, recorded, and presented by
863:
While the common usage of the term "financial plan" often refers to a formal and defined series of steps or goals, there is some technical confusion about what the term "financial plan" actually means in the industry. For example, one of the industry's leading professional organizations, the
824:
categories which are relevant. For instance, investing activities are not adequately displayed in a balance sheet. A financial plan is a combination of the individual financial statements and reflect all categories of transactions (operations & expenses & investing) over time.
860:. Forecasts are based on management's expected financial position, results of operations, and cash flows." Pro Forma statements take previously recorded results, the historical financial data, and present a "what-if": "what-if" a transaction had happened sooner.
835:(current and future period). Compilations are a type of service which involves "presenting, in the form of financial statements, information that is the representation of management". There are two types of "prospective financial statements":
847:
are a time period-type of financial statement which may reflect the current/future financial status of a company using three main reports/financial statements: cash flow statement, income statement, and balance sheet.
744:
is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans. This often includes a
884:
Textbooks used in universities offering financial planning-related courses also generally do not define the term 'financial plan'. For example, Sid Mittra, Anandi P. Sahu, and Robert A Crane, authors of
868:
publication. This publication outlines the professional financial planner's job, and explains the process of financial planning, but the term "financial plan" never appears in the publication's text.
1039:
Sid Mittra, Anandi P. Sahu, Robert A Crane. "Practicing
Financial Planning for Professionals" (Practitioners' Edition), 10th Edition. (Rochester Hills Publishing, Inc., 2007) sec. 1-3.
957:
A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans
889:
do not define what a financial plan is, but merely defer to the
Certified Financial Planner Board of Standards' definition of 'financial planning'.
1097:
757:, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an
428:
777:" or "financial plan" can also refer to an projection across a time horizon, typically an annual one, of income and expenses for a
413:
418:
111:
727:
578:
282:
179:
83:
433:
423:
189:
485:
17:
90:
1121:
To Plug or Not to Plug, that is the
Question: No Plugs, No Circularity: A Better Way to Forecast Financial Statements
1081:
749:
which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and
613:
490:
130:
438:
381:
522:
64:
1127:
A Step by Step Guide to
Construct a Financial Model Without Plugs and Without Circularity for Valuation Purposes
97:
765:, a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.
475:
68:
809:
and a decision on how to raise the cash, such as through borrowing or issuing additional shares in a company.
1159:
1138:
912:
79:
864:
Certified
Financial Planner Board of Standards, lacks any definition for the term "financial plan" in its
932:
1154:
1027:
720:
527:
163:
1126:
1120:
361:
237:
57:
1050:
898:
company should be totaled and treated as one large project. This process is called aggregation.
653:
588:
312:
806:
638:
376:
242:
184:
104:
786:
688:
227:
8:
952:
798:
713:
678:
673:
648:
643:
583:
512:
470:
452:
405:
386:
317:
222:
147:
1030:
Certified
Financial Planner Board of Standards. Rev. January 2010. Retrieved 2011-09-24.
1091:
774:
517:
352:
307:
1077:
907:
698:
693:
272:
247:
794:
762:
480:
366:
927:
568:
532:
322:
302:
287:
232:
217:
174:
782:
573:
541:
252:
1148:
922:
802:
790:
683:
546:
465:
460:
297:
618:
357:
785:. More specifically, a financial plan can also refer to the three primary
1133:
Long-Term
Financial Statements Forecasting: Reinvesting Retained Earnings
504:
758:
608:
292:
155:
1072:
Jordan, Stephen A. Ross, Randolph W. Westerfield, Bradford D. (2010).
1115:
Prospective
Analysis: Guidelines for Forecasting Financial Statements
1076:(9th ed., Standard ed.). Boston: McGraw-Hill Irwin. p. 89.
753:
in the future. This plan allocates future income to various types of
1132:
1114:
46:
778:
754:
391:
371:
277:
35:
917:
746:
537:
212:
560:
342:
207:
347:
973:, fourth ed. (McGraw-Hill Book Company, 1970) pp. 187-188.
827:
Some period-specific financial statement examples include
1009:"Auditing A Business Risk Approach", 8ed, 2010, p.892.
30:"Financial Planning" redirects here. For the magazine
843:and both relate to the current/future time period.
71:. Unsourced material may be challenged and removed.
816:, which are similar, but different, to those of a
1146:
887:Practicing Financial Planning for Professionals
812:Note that the financial plan may then contain
1018:"Auditing A Business Risk Approach", 8ed, 2010
1000:"Auditing A Business Risk Approach", 8ed, 2010
721:
1096:: CS1 maint: multiple names: authors list (
429:International Financial Reporting Standards
1048:
728:
714:
1117:, Ignacio Velez-Pareja, Joseph Tham, 2008
131:Learn how and when to remove this message
879:
14:
1147:
1071:
768:
419:Generally-accepted auditing standards
1028:"Standards Of Professional Conduct".
69:adding citations to reliable sources
40:
1141:, Phronesis Wealth Management, 2023
831:statements (historical period) and
434:International Standards on Auditing
27:Evaluation of one's financial state
24:
805:. A financial plan can also be an
25:
1171:
1108:
1074:Fundamentals of corporate finance
866:Standards of Professional Conduct
491:Notes to the financial statements
850:Prospective financial statements
845:Prospective financial statements
814:prospective financial statements
781:, division, or department; see
439:Management Accounting Principles
162:
45:
1065:
1042:
969:Meigs, Walter B. and Robert F.
56:needs additional citations for
1139:The Plan for Financial Comfort
1033:
1021:
1012:
1003:
994:
988:
976:
963:
945:
783:Budget § Corporate budget
13:
1:
938:
913:Financial planning (business)
414:Generally-accepted principles
1129:, Ignacio Velez-Pareja, 2008
1123:, Ignacio Velez-Pareja, 2008
7:
1135:, Sergei Cheremushkin, 2008
1053:. Asset Insights, 2000-2013
953:"Financial Plan Definition"
933:Reference class forecasting
901:
892:
10:
1176:
29:
985:, fourth ed, 2000, p.578.
283:Constant purchasing power
180:Constant purchasing power
807:estimation of cash needs
614:Accounting organizations
602:People and organizations
918:Financial plan (budget)
362:Amortization (business)
833:prospective statements
841:financial projections
486:Management discussion
1160:Financial management
971:Financial Accounting
880:Issues of definition
837:financial forecasts
787:financial statements
740:In general usage, a
453:Financial statements
406:Accounting standards
65:improve this article
801:) created within a
799:cash flow statement
769:Context of business
679:Earnings management
649:Positive accounting
523:Double-entry system
513:Bank reconciliation
318:Revenue recognition
1051:"Planning Horizon"
852:are of two types-
775:financial forecast
654:Sarbanes–Oxley Act
589:Sarbanes–Oxley Act
518:Debits and credits
353:Cost of goods sold
308:Matching principle
32:Financial Planning
18:Financial planning
908:Capital budgeting
738:
737:
699:Two sets of books
694:Off-balance-sheet
336:Selected accounts
273:Accounting period
141:
140:
133:
115:
16:(Redirected from
1167:
1155:Personal finance
1102:
1101:
1095:
1087:
1069:
1063:
1062:
1060:
1058:
1049:Asset Insights.
1046:
1040:
1037:
1031:
1025:
1019:
1016:
1010:
1007:
1001:
998:
992:
986:
983:Barron's Finance
980:
974:
967:
961:
960:
949:
795:income statement
763:personal finance
730:
723:
716:
166:
143:
142:
136:
129:
125:
122:
116:
114:
80:"Financial plan"
73:
49:
41:
21:
1175:
1174:
1170:
1169:
1168:
1166:
1165:
1164:
1145:
1144:
1111:
1106:
1105:
1089:
1088:
1084:
1070:
1066:
1056:
1054:
1047:
1043:
1038:
1034:
1026:
1022:
1017:
1013:
1008:
1004:
999:
995:
989:
981:
977:
968:
964:
951:
950:
946:
941:
928:Personal budget
904:
895:
882:
771:
734:
705:
704:
703:
668:
660:
659:
658:
633:
625:
624:
623:
603:
595:
594:
593:
563:
553:
552:
551:
507:
497:
496:
495:
455:
445:
444:
443:
408:
398:
397:
396:
337:
329:
328:
327:
323:Unit of account
303:Historical cost
288:Economic entity
267:
259:
258:
257:
202:
194:
175:Historical cost
137:
126:
120:
117:
74:
72:
62:
50:
39:
28:
23:
22:
15:
12:
11:
5:
1173:
1163:
1162:
1157:
1143:
1142:
1136:
1130:
1124:
1118:
1110:
1109:External links
1107:
1104:
1103:
1082:
1064:
1041:
1032:
1020:
1011:
1002:
993:
987:
975:
962:
943:
942:
940:
937:
936:
935:
930:
925:
920:
915:
910:
903:
900:
894:
891:
881:
878:
874:financial plan
773:In business, "
770:
767:
742:financial plan
736:
735:
733:
732:
725:
718:
710:
707:
706:
702:
701:
696:
691:
686:
681:
676:
670:
669:
666:
665:
662:
661:
657:
656:
651:
646:
641:
635:
634:
631:
630:
627:
626:
622:
621:
616:
611:
605:
604:
601:
600:
597:
596:
592:
591:
586:
581:
576:
571:
565:
564:
559:
558:
555:
554:
550:
549:
544:
542:General ledger
535:
530:
525:
520:
515:
509:
508:
503:
502:
499:
498:
494:
493:
488:
483:
478:
473:
468:
463:
457:
456:
451:
450:
447:
446:
442:
441:
436:
431:
426:
421:
416:
410:
409:
404:
403:
400:
399:
395:
394:
389:
384:
379:
374:
369:
364:
355:
350:
345:
339:
338:
335:
334:
331:
330:
326:
325:
320:
315:
310:
305:
300:
295:
290:
285:
280:
275:
269:
268:
265:
264:
261:
260:
256:
255:
250:
245:
240:
235:
230:
225:
220:
215:
210:
204:
203:
200:
199:
196:
195:
193:
192:
187:
182:
177:
171:
168:
167:
159:
158:
152:
151:
139:
138:
53:
51:
44:
26:
9:
6:
4:
3:
2:
1172:
1161:
1158:
1156:
1153:
1152:
1150:
1140:
1137:
1134:
1131:
1128:
1125:
1122:
1119:
1116:
1113:
1112:
1099:
1093:
1085:
1083:9780073382395
1079:
1075:
1068:
1052:
1045:
1036:
1029:
1024:
1015:
1006:
997:
991:
984:
979:
972:
966:
958:
954:
948:
944:
934:
931:
929:
926:
924:
923:Optimism bias
921:
919:
916:
914:
911:
909:
906:
905:
899:
890:
888:
877:
875:
869:
867:
861:
859:
855:
851:
846:
842:
838:
834:
830:
825:
821:
819:
815:
810:
808:
804:
803:business plan
800:
796:
792:
791:balance sheet
788:
784:
780:
776:
766:
764:
761:plan, but in
760:
756:
752:
748:
743:
731:
726:
724:
719:
717:
712:
711:
709:
708:
700:
697:
695:
692:
690:
687:
685:
684:Error account
682:
680:
677:
675:
672:
671:
664:
663:
655:
652:
650:
647:
645:
642:
640:
637:
636:
629:
628:
620:
617:
615:
612:
610:
607:
606:
599:
598:
590:
587:
585:
582:
580:
577:
575:
572:
570:
567:
566:
562:
557:
556:
548:
547:Trial balance
545:
543:
539:
536:
534:
531:
529:
528:FIFO and LIFO
526:
524:
521:
519:
516:
514:
511:
510:
506:
501:
500:
492:
489:
487:
484:
482:
479:
477:
474:
472:
469:
467:
466:Balance sheet
464:
462:
461:Annual report
459:
458:
454:
449:
448:
440:
437:
435:
432:
430:
427:
425:
422:
420:
417:
415:
412:
411:
407:
402:
401:
393:
390:
388:
385:
383:
380:
378:
375:
373:
370:
368:
365:
363:
359:
356:
354:
351:
349:
346:
344:
341:
340:
333:
332:
324:
321:
319:
316:
314:
311:
309:
306:
304:
301:
299:
298:Going concern
296:
294:
291:
289:
286:
284:
281:
279:
276:
274:
271:
270:
263:
262:
254:
251:
249:
246:
244:
241:
239:
236:
234:
231:
229:
226:
224:
221:
219:
216:
214:
211:
209:
206:
205:
198:
197:
191:
188:
186:
183:
181:
178:
176:
173:
172:
170:
169:
165:
161:
160:
157:
154:
153:
149:
145:
144:
135:
132:
124:
113:
110:
106:
103:
99:
96:
92:
89:
85:
82: –
81:
77:
76:Find sources:
70:
66:
60:
59:
54:This article
52:
48:
43:
42:
37:
33:
19:
1073:
1067:
1055:. Retrieved
1044:
1035:
1023:
1014:
1005:
996:
990:
982:
978:
970:
965:
956:
947:
896:
886:
883:
873:
870:
865:
862:
857:
853:
849:
844:
840:
836:
832:
828:
826:
822:
817:
813:
811:
772:
750:
741:
739:
619:Luca Pacioli
540: /
360: /
358:Depreciation
266:Key concepts
238:Governmental
127:
118:
108:
101:
94:
87:
75:
63:Please help
58:verification
55:
31:
858:projections
632:Development
609:Accountants
505:Bookkeeping
424:Convergence
382:Liabilities
313:Materiality
201:Major types
1149:Categories
939:References
759:investment
667:Misconduct
293:Fair value
243:Management
185:Management
156:Accounting
91:newspapers
1092:cite book
854:forecasts
829:pro forma
689:Hollywood
569:Financial
471:Cash-flow
228:Financial
902:See also
893:Planning
755:expenses
674:Creative
644:Research
574:Internal
561:Auditing
377:Goodwill
372:Expenses
223:Forensic
148:a series
146:Part of
121:May 2012
1057:3 March
779:company
639:History
533:Journal
392:Revenue
278:Accrual
105:scholar
36:Arizent
1080:
839:&
818:budget
797:, and
751:saving
747:budget
584:Report
538:Ledger
481:Income
476:Equity
387:Profit
367:Equity
343:Assets
248:Social
213:Budget
107:
100:
93:
86:
78:
34:, see
579:Firms
208:Audit
112:JSTOR
98:books
1098:link
1078:ISBN
1059:2014
856:and
348:Cash
233:Fund
218:Cost
84:news
253:Tax
190:Tax
67:by
1151::
1094:}}
1090:{{
955:.
876:.
793:,
150:on
1100:)
1086:.
1061:.
959:.
848:"
789:(
729:e
722:t
715:v
134:)
128:(
123:)
119:(
109:·
102:·
95:·
88:·
61:.
38:.
20:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.