financial decision

Financial decision is a process which is responsible for all the decisions related with liabilities and stockholder’s equity of the company as well as the issuance of bonds.

                    

To make a good Financial Planning Process you have to follow these six steps:
  1. Determine current financial situation: To join all the information about the financial situation of the company, such as bank accounts, loans, taxes, utility bills, investments, insurance… Finally, with all this information analyzed, you can evaluate how the financial situation is.
  2. Establish your financial goals: Setting the goals you want to achieve and the risk that you would be able to suffer.
  3. Identify different courses of action:Once you have established the objectives, you must fix the actions to be carried out.
  4. Evaluate alternatives: There isn`t a unique action to carry out the project. You should know that there are different ways to reach the same goals.
  5. Elaborate and implement the actions of the financial plan: When you have already fixed your objectives and you know the actions to carry out, you only need to launch the project. You should keep in mind that not always makes more money in less time is synonymous of a better financial plan. You must prioritize the objectives.
  6. Review and revise the financial plan: Evaluate how the project is operating relative to a forecast which was made previously. If you aren`t performing according to expectations, you should propose a strategy to correct the mistakes.

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Financial Decision Making

Financial Decision Making

How to make the best financial decisions

How to make the best financial decisions