Financial planning connects the goals a business wants to achieve in the future and the resources it will need to achieve those goals. It is also about evaluating the financial resources of a company. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Financial management involves setting goals across the business and deciding what resources will be needed to achieve those goals. The primary goal of financial management is to properly account for a business's revenues and expenses in order to maximize the value of that business to its owners. To achieve this, managers must balance the following objectives: addressing the current financial situation, determining the financial elements of the business plan, developing budgets estimating cash flows, preparing financial reports, interpreting financial reports, maintaining systems registration, plan financial controls and minimize financial risks. and losses. By having a financial plan and analysis, large businesses improve their financial position and become less likely to go bankrupt. Funds are the money a business uses to finance its operations. There are two sources of funds: Internal, which includes equity and retained earnings. External, which includes short-term borrowings, mainly overdrafts and bank bills, and long-term borrowings, such as mortgages and debentures. Leasing, which includes operating leases, and leasingFactoring Venture Capital GrantsIn managing funds, a company will use a combination of debt financing and equity financing (Heer, R). There are costs, benefits and risks associated with both types of financing. Gearing is the proportion of debt financing to equity financing. The success of the debt level will depend on circumstances, including the economic cycle. “The accounting framework is necessary for a business to accurately record its income and expense streams” (Murphy, D). Financial reports published by Australian companies are general purpose reports that respond to user interests. The two basic financial reports are: The income statement, which shows income and expenses and can be used to calculate profits. The balance sheet, which shows details of a company's assets, liabilities, and equity at a given point in time. A fundamental part of the accounting framework is the accounting equation, which shows the relationship between the company's assets and liabilities. In this equation, the amount of assets must equal the sum of total liabilities and shareholders' equity. “Assets = Liabilities + Equity Assets are the element of value owned by a business.” (Murphy, D.). There are two groups of assets: current assets (in the short term, less than 12 months will be transformed into cash) non-current assets (in the long term, more than 12 months will be transformed into cash) equity is the property of a business. There are two main types of equity. Equity, that is to say the money invested by the owner. Equity, that is to say the money invested by shareholders. Financial ratio analysis is one of the most common methods of analyzing and interpreting financial statements. The objectives of financial planning are to determine capital requirements, as this will help determine the cost of.