Summary of Financial Planning and Management▲ Financial planning connects the goals a company wants to achieve in the future and the resources it will need to achieve them. It also deals with evaluating the financial resources of a company. Strategic financial management involves setting the company's objectives and deciding what resources will be needed to achieve them. The primary goal of financial management is to adequately account for a business's income and expenses in order to maximize the value of that business to its owners. To achieve this goal, the manager must balance the following objectives: Liquidity Profitability Efficiency Growth Return on Capital The financial planning cycle will be part of the business plan or derive from the business plan. The financial planning cycle is a continuous cycle of activities that take place in the financial area as the business plan is implemented. These activities include: Addressing the current financial situation Determining the financial elements of the business plan Developing budgets Estimating cash flows preparing financial reports interpreting financial reports maintaining record systems planning financial controls Minimizing financial risks and losses.▲ Financial markets are important for businesses because these markets provide access to funds needed for growth and to finance aspects of operations. There are two main financial markets: the money market and the capital market. The main participants in the financial markets are: banks, which are the largest investment banks, finance and insurance companies, pension/mutual funds...... half of paper...... Inventory: it is any stored resource such as work in progress, finished goods, or raw materials that a company has. Operating cycle: Describes the transaction of a firm's working capital from cash to inventory, to receivables, and back to cash. Accounts payable - are company debts, arising from the purchase of goods from suppliers, which have not yet been paid. Just-in-time- [JIT] describes an inventory control system in which the materials needed for production arrive just before use and do not require storage. Cost Center: is a unit within a company held responsible for costs in its area. Audit: is an official examination of accounts to establish their truth and fairness. Ethics: is a system of moral principles that involves high standards and socially accepted standards of conduct. ▲ ▲