Difference Between Financial Plan And A Budget

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Introduction
Financial management is one of the important function in any operational process, its main goal is achieving profit for the owners, in order to do so, the business must appropriately operated to insure the most efficient way to achieve the aims of the business . From this point the importance of the role of managers appear in which it's responsible for providing advice and support for business deferent decisions. This essay will explain the duties of financial manager in a retail setting; furthermore it's going to explain the difference between a financial plan and a budget. Evaluating budget contribution in achieving the aims of the business and it will also discuss the qualities and skills the commercial managers should have …show more content…

A financial plan is an evaluation of the business current and future financial state by using known variables and assets to forecast future cash flows, which also include the budget in order to organizes the business finances and it's often include some steps and future goals for spending and future savings. Financial plan allocates rent and utilities and reserve some of the income for short term savings and long term as well. A financial plan is an investment plan. Budget and financial plan complete each other, yet there is a difference between them, such as: financial plan tells you where are you going in the future setting the goals of the business for years to come, on the other hand a budget show where are you today and help the business to map out the expenses for the next weeks or months' to come.
Financial plan is a kind of strategic approach which requires creating a long-term plan to insure the business to reach its goals and aims, while budgeting managing the day-to-day issues. Yet they also complete each other in this point as the budget provides you information on how much money you can invest to the future …show more content…

Also an important quality in commercial manager, at the time of creating marketing or financial plans commercial manager try to generate the highest profits to the minimum risk regarding the business position and actions. (Mccready.J(2013))

Dealing with the changes.
Commercial manager must be able to deal with the whole working process managing them almost automatically. Commercial manager should react flexibly with any accord changes and adapt with them, he must react quickly when facing obstacles in order to take the right decision.(Mumford.MD.Zaccarro.SJ (2012))
In conclusion, a good financial manager always have a great role in making sure that the business is stable, he is a guideline for the financial issues to be followed well and being prepared for changes, "any business that sells well but have a poor financial management can fail" (Johnston.K (1999)). Commercial manager as well, plays a crucial role in implementing sales and marketing and developing the business brand. Co-ordination between all management together is important for the business in order to have a clear financial planning for the future which in turn creat a balance to meet these

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