MANAGEMENT

Detailed explanation-1: -Financial planning is needed by a small business only until it begins to make a profit. A cash budget is an estimate of the actual money received and paid out for a specific period. The two most common and important financial records for businesses are the income statement and the balance sheet.

Detailed explanation-2: -Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set.

Detailed explanation-3: -Statement of owner’s investments is not one of the financial statements.

Detailed explanation-4: -You can write a financial plan yourself or enlist the help of a professional financial planner. The first step is to calculate your net worth and identify your spending habits. Once this has been documented, you need to consider longer-term objectives and decide on the ways to achieve them.