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    Financial Plan

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    Paavni Sharma
    The document discusses the definition and context of a financial plan. It notes that a financial plan can refer to budgeting goals for an individual or business projections like income statements. However, there is no standard industry definition. Textbooks on financial planning also do not formally define the term. Due to this lack of consensus, the meaning of a financial plan is inferred from the process of financial planning rather than a set definition.

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    Financial Plan

    Uploaded by

    Paavni Sharma
    132 views3 pages
    The document discusses the definition and context of a financial plan. It notes that a financial plan can refer to budgeting goals for an individual or business projections like income statements. However, there is no standard industry definition. Textbooks on financial planning also do not formally define the term. Due to this lack of consensus, the meaning of a financial plan is inferred from the process of financial planning rather than a set definition.

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    The document discusses the definition and context of a financial plan. It notes that a financial plan can refer to budgeting goals for an individual or business projections like income statements. However, there is no standard industry definition. Textbooks on financial planning also do not formally define the term. Due to this lack of consensus, the meaning of a financial plan is inferred from the process of financial planning rather than a set definition.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    132 views3 pages

    Financial Plan

    Uploaded by

    Paavni Sharma
    The document discusses the definition and context of a financial plan. It notes that a financial plan can refer to budgeting goals for an individual or business projections like income statements. However, there is no standard industry definition. Textbooks on financial planning also do not formally define the term. Due to this lack of consensus, the meaning of a financial plan is inferred from the process of financial planning rather than a set definition.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Financial plan

    1
    Financial plan
    Accounting
    Historical cost accounting
    Constant purchasing power
    accounting
    Management accounting
    Tax accounting
    Business portal
    v
    t
    e
    [1]
    In general usage, a financial plan
    [2]
    is a series of steps or goals used by an individual or business, the progressive
    and cumulative attainment of which is designed to accomplish a financial goal or set of circumstances, e.g.
    elimination of debt, retirement preparedness, etc. This often includes a budget which organizes an individual's
    finances and sometimes includes a series of steps or specific goals for spending and saving future . This plan
    allocates future income to various types of expenses, 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 investment plan, but in personal
    finance a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.
    Context of Business
    In business, a financial plan can refer to the three primary financial statements (balance sheet, income statement, and
    cash flow statement) created within a business plan. Financial forecast or financial plan can also refer to an annual
    projection of income and expenses for a company, division or department.
    [3]
    A financial plan can also be an
    estimation of cash needs and a decision on how to raise the cash, such as through borrowing or issuing additional
    shares in a company.
    [4]
    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 Certified Financial Planner Board of Standards, lacks
    any definition for the term "financial plan" in its Standards of Professional Conduct 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.
    [5]
    Financial plan
    2
    Issues of Definition
    Textbooks used in colleges 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 Practicing Financial Planning for
    Professionals
    [6]
    do not define what a financial plan is, but merely defer to the Certified Financial Planner Board of
    Standards' definition of 'financial planning'.
    Because of the lack of a formal definition in industry literature, and in major textbooks on the subject, the term
    'financial plan' is merely inferred from the defined process of 'financial planning'.
    References
    Wikimedia Commons has media related to Financial Planning.
    [1] http:/ / en. wikipedia. org/ w/ index. php?title=Template:Accounting& action=edit
    [2] https:/ / www. moneysmart.gov. au/ tools-and-resources/ calculators-and-tools/ budget-planner
    [3] Meigs, Walter B. and Robert F. Financial Accounting, 4th ed. (McGraw-Hill Book Company, 1970) pp. 187-188.
    [4] Barron's Finance, 4th ed, 2000, p.578.
    [5] "Standards Of Professional Conduct". (http:/ / www.cfp. net/ Downloads/ 2010Standards. pdf) Certified Financial Planner Board of
    Standards. Rev. January 2010. Retrieved 2011-09-24.
    [6] [6] 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.
    Article Sources and Contributors
    3
    Article Sources and Contributors
    Financial plan Source: http://en.wikipedia.org/w/index.php?oldid=622521563 Contributors: A. B., AbsolutDan, Arjayay, Babyboomer57, Bender235, Booyabazooka, C hammervold10, Caltas,
    CharlotteWebb, CouchSurfer222, Denisarona, Doulos Christos, Edward, Efe, ElissaBuie, Engi08, Financ37, Finplanwiki, Grafen, Hu12, Indiagirl, Jojalozzo, Jwestland, Kinu, Kuru, Lateg,
    LeaveSleaves, Lerdthenerd, Lorraine Benjamin, Lotje, McGeddon, Mookie37, Mrgalerte1, Mrh30, Ohnoitsjamie, Peterwaldron4200, Piano non troppo, Piratejosh85, Ppjs57, RJN, Reach Out to
    the Truth, Rgedwards, Rwil02, SVCherry, Sagetele1, Sgrowthfp, Simon123, Snow Blizzard, SueHay, SummerPhD, Surajrameshsharma, Thom2002, Wealthadvise, Wgpkeyser, Whatasite, Widr,
    77 anonymous edits
    Image Sources, Licenses and Contributors
    File:Hauptbuch Hochstetter vor 1828.jpg Source: http://en.wikipedia.org/w/index.php?title=File:Hauptbuch_Hochstetter_vor_1828.jpg License: Public Domain Contributors: Photo: Andreas
    Praefcke
    File:Portal-puzzle.svg Source: http://en.wikipedia.org/w/index.php?title=File:Portal-puzzle.svg License: Public Domain Contributors: Anomie
    Image:Commons-logo.svg Source: http://en.wikipedia.org/w/index.php?title=File:Commons-logo.svg License: logo Contributors: Anomie
    License
    Creative Commons Attribution-Share Alike 3.0
    //creativecommons.org/licenses/by-sa/3.0/

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