Long Term Financial Plan Homework Help
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Long term financial plan forms an integral part of an overall strategic plan. It is a forecasting method for projecting revenues and expenditures over a long term period, using assumptions about economic conditions, future spending scenarios, and other salient variables.Every project which an organization takes up highly depends upon the extent of financial investment made into it.Not only the extent of financial investment but also the correct use or expenditure of finance is important while setting the success of the goal. In this scenario the role of long term financial plan comes into play. Many organizations and government have long term financial planning process which helps them sketch out the future agenda related to various projects and goals which they aim to achieve. Details about the long term financial plan have been discussed in the Long Term Financial Plan Homework Help.Long term financial planning is also needed to ensure a secured financial status of a project or work. Financial planning strategy has to be formulated before the beginning of any project or work to meet any financial challenges that may occur in the way. Also there are greater chances of financial crisis that may arise due to improper resource allocation, over expenditure, stocking of resources, hike in prices of resources, increase in labor prices etc.
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Elements of Long Term Financial Plan
The essentials of long term financial plan have been discussed in Long Term Financial Plan Homework Help. These elements are
• Time Horizon- A financial plan should be such that it should peep into a minimum of ten to fifteen years into the future. Further it should be flexible enough so that the time horizon can be extended further if conditions permit.
• Scope- A plan should consider all appropriated funds, but especially those funds that are used to account for the issues of top concern to elected officials and the community.
• Frequency-Though a long term financial plan is directed towards a minimum of ten to fifteen years into the future however it must have the scope of increasing the tenure if the need arises and the conditions support.
• Content- A financial plan should include a detail analysis of all the financial transactions taking place, debts, future financial goals, investments, allocation of finances, expenditure, etc.
• Visibility- A long term financial plan should be such formulated that the general public as well as the elected officials should be able to easily learn about the long term financial prospects of the government and strategies of financial balance. An elaborate discussion on it has been mentioned in Long Term Financial Plan Homework Help.
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