When one talks about the way financial planning is supposed to be carried out in the organization, there are many considerations that have to be put together. The first one is to make sure that the relevant costs and the expenditures are going to be controlled, then comes the fact that how the record keeping requirements are supposed to be followed. The core idea though is to make sure that the support of all the stakeholders must be there in order to make sure that the financial planning is being done in the right manner (Osadchy and Akhmetshin, 2015, p.390).
Controlling Costs and Improving Controls
One of the key things is to make sure that how the purchases are needed to be controlled. If purchases are managed in the appropriate manner, there is going to be consolidation in terms of the way pricing is supposed to be carried out (Osadchy and Akhmetshin, 2015, p.390). At the same time, vendor management is also an important part of the business management. In order to control costs in that regard, it has to be made sure that the vendors must be competing for carrying out business with one’s organization (Osadchy and Akhmetshin, 2015, p.390). At the same time, by changing the nature of the expenses from variable to fixed, the organization can save itself lot of cost. For instance, the performance based compensation system can be used rather than opting for the guaranteed payment cycles (Alviniussen and Jankensgard, 2015. p.32). The other thing that is very important is to make sure that some sort of fiscal discipline is being inculcated in the team members.
Financial Contingency Plans
The financial contingency plans are the plans that are needed to be implemented if there is a sudden financial emergency that is being faced by the business. The idea in such plan is to make sure that the resource allocation is carried out in the manner that make sure that all the relevant financial resources that are at the disposal of the organization are being managed in an appropriate manner (Alviniussen and Jankensgard, 2015. p.32).
Meeting Record Keeping Requirements
One of the key things that are needed to be done when it comes to the proper financial planning is to make sure that the development of the record keeping mechanism has to be there (Osadchy and Akhmetshin, 2015, p.390). What it means is that the effort must be carried out to make sure that the record keeping is done in the manner that all the financial transactions that are carried out by the entity are needed to be recorded. Not only that, effort has to be made to make sure that the reporting periods and the financial transactions are being taken care off in the appropriate manner (Alviniussen and Jankensgard, 2015. p.32)
Support of All the Stakeholders
Needless to say, in order to improve the financial record keeping mechanism as well as making sure that the relevant controls are developed in terms of the expenses is being recorded. What it means that each of the stakeholder in the organization have to make sure that they play their part in cutting down the relevant expenses but to also ensure that the record keeping is brought into financial consideration (Alviniussen and Jankensgard, 2015. p.32).
Improvement in the Budget and Financial Plan
With the advent of the better controls and better financial planning, the important thing that happened was that how the overall controls in the organization were improved. Not only that, there was also significant improvement in the way financial conditions such as liquidity was improved due to contingency planning (Osadchy and Akhmetshin, 2015, p.390).
Alviniussen, A. and Jankensgard, H., 2015. Enterprise risk budgeting: bringing risk management into the financial planning process.
Osadchy, E.A. and Akhmetshin, E.M., 2015. Development of the financial control system in the company in crisis. Mediterranean Journal of Social Sciences, 6(5), p.390.