Question

How do you write a financial summary?

Answer 1

For every organaisation financial data is the pillers of bussiness plan, so that financial summary provides organisationn's accurate current possition.

Following points should be consider for drafting of financial summary

(i) Financial Statement:- For any organisation,financial summary should be start with financial statement of that organisation. financial statement provides data of organisation's financial position such as income, expenses, cash flow statement. financial statement consider mainly three statement i.e income statement, balance sheet, cash flow statement.

(ii) Types of financing:- organisation must determine what type of financing is most suitable for that organisation and organisation's fund requirements.

(iii) Use of funds:- organisation explains that how they use invester's money.

(iv) Sales and Income Forcast:- organisation is required to mention their expected sales in a month and in year. and how much they earn in a year. because objectives of organisation is to maximization of sahreholders wealth.

(v) Breakeven Analysis:- The breakeven point is that point when your business expenses match your sales. this is a very important for an organisation to analys breakeven point.