Fiscal Planning Flashcards
also known as financial planning is an important part of financial management. It is the process of determining the objectives,
policies, procedures, programmes and budgets to deal with financial
activities of an organization?
Fiscal planning
relating to relating to finance, which is the commercial activity of
providing funds and capitals or to put it the other way, the ways in which individuals
and organization raise money?
Financial
planning is the process of thinking about the activities required to achieve
a desired goal?
Planning
relating to financial matters, especiallygovernment taxrevenue and
expenditure and debt government?
Fiscal
chief concerned with maximizing the wealth of owners through
wise and rational investment of funds. It involves the application of general management
principles to a particular financial operation?
Financial management
Objectives of Fiscal Planning?
To determine capital requirement, To determine capital structure, To frame financial policies and To utilize financial resources adequately
Factors affecting Fiscal Planning?
Objectives, Requirement of organization, Economy and Flexibility
An investment plan is a tool in the process of financial planning
designed to develop an investing strategy to achieve your
financial goals?
Investment Planning
Benefits of Investment Planning?
Family Security, Efficiently Manage Income, Financial understanding, Savings, and Standard of Living
Objectives of Investment Planning?
Safety, Income, Growth of Capital, Tax Minimization, and Liquidity
the analysis of a financial situation or plan to
ensure that all elements work together to allow you to pay the
lowest taxes possible. A plan that minimizes how much you pay in
taxes is referred to as tax efficient.
Tax planning
Takes last year’s actual figures and adds or
subtracts a percentage to obtain the current year’s budget. It is the
most common type of budget because it is simple and easy to
understand.
Incremental budgeting
A top-down type of budget that
determines the amount of inputs required to support the targets or
outputs set by the company.
Activity-based budgeting
A mindset about making sure that
everything that is included in the budget delivers value for the business.
Value Proposition Budgeting
A good to use when there is an urgent need
for cost containment, for example, in a situation where a company is
going through a financial restructuring or a major economic or market
downturn that requires it to reduce the budget dramatically.
Zero - based Budgeting
