MANAGEMENT

Detailed explanation-1: -1) Identify your Financial Situation The first stage of the financial planning process constitutes assessment on what is happening in your life right now and how you can change your financial situation.

Detailed explanation-2: -Establish a budget. Review your income, savings and spending along with your financial goals. Your budget doesn’t need to be restrictive, but it can lead to eye-opening moments that help you realize what you’re spending on non-value-add expenses.

Detailed explanation-3: -A financial planning process begins with short-term, or operating, plans and budgets that in turn guide the formulation of long-term, or strategic, financial plans.

Detailed explanation-4: -Long-term financial planning involves projecting revenues, expenses, and key factors that have a financial impact on the organization. Understanding long-term trends and potential risk factors that may impact overall financial sustainability allows the finance officer to proactively address these issues.