- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 07 Jan 2016
Financial management tools
Financial planning develops from strategic plans and business plans to identify the financial resources that are needed by a business and to obtain and develop those resources to achieve the business' goals. Typically, financial planning generates relevant and realistic budgets.
One of the most important financial statements for a business is the cash flow statement. The overall purpose of managing cash flow is to make sure that a business has enough cash to pay current bills. Businesses can manage cash flow by examining a cash flow statement and cash flow projection (or cash flow forecast). In essence, the cash flow statement presents total cash received minus total cash spent.
A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, and so on.
Budget deviation analysis regularly compares what the business expected, or planned to earn and spend with what it actually spent and earned. A budget deviation analysis can help assess how closely a business is following its plans, how much to budget in the future, where there may be upcoming problems in spending, and so on.
 Find out more
 Related articles on Designing Buildings Wiki
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- Construction loan.
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- Fair payment practices for construction.
- Housing Grants, Construction and Regeneration Act.
- Remedies for late payment.
- Scheme for Construction Contracts.
- The Late Payment of Commercial Debts Regulations 2013.
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