Question

I need answer for this question:

Short-Term Financial Planning

Although one can argue that much of our corporate and governmental leaders are too focused on the short-term timeframe; a lot can happen within the span of the next year and it needs to be planned for accordingly. Many factors such as new regulations, taxes, competitor actions, industrial espionage, management shake-ups, etc., can happen within a year or less so these eventualities need to be considered and planned for. Experience will be your guide and even the most seasoned planners are still constantly learning!


-Forecasting is a large part of Short-Term Financial Planning. You are now an economist at a local Connecticut aerospace manufacturing firm. How do you see the Connecticut, U.S., and global economies performing over the next year? 5 years? Why?

-What are some implications of your forecast on your firm’s projections for sales, inventory, staffing, etc.?
-What are some tools you would use to perform your short-term financial planning?

Answer 1

Generally any organisation will have short term financial planning and also long term financial planning, short term financial planning are within done within a time frame of less than 1year and long term financial planning are taken for a a period of more than 1 year

An organisation can focus on short term financial planning by taking the below steps

1)plan and seta budget

2) make a saving goal

3)pay off debts

4) keep tabs on current affairs

5) use a financial planner

The short term goals must be smart in nature

S specific

M measurable

A achievable

R realistic

T timely

The colonial Connecticut was based on timber products, the fur trade, maple syrup, copper, livestock products ,horses, rum whiskey and beer

As we know the corona is already major economic compact on Connecticut and its likely to geta lot worse in the weeks and potentially months ahead

Implications on firm’s projection for

Sales : turnover must be increased make the things globalised using ecommerce and thus by our product can get more sale and thereby we can increase our turn over

Inventory:

Inventory can also be increased   maintaining the inventory turnover ratio

Staffing

Staffing also plays a very key role into the organisation as the size of the organisation increase .there by generating more turnover and creation more employment and thus automatically reduces the unemployment

Key tools of financial planning

Business plan and budget and cost projection

Break even analysis and financial statements