IFC Finance – Financial Planning Experts
Whether you are a business or an individual, there are numerous benefits to putting together an effective financial plan. Even if you are a profitable business, without a sound financial plan in place your company could run in to trouble due to lack of cashflow at certain periods throughout the financial year which may lead to interest penalties, late payments to suppliers and even legal costs. We have listed below some of the ways Financial Planning can maximise your profit potential as a business but also to spend/save wisely as an Individual:
One of the principal benefits of effective Financial Planning is being able to forecast any shortfall in your income to cover your expenses. There may be certain times throughout the year where you are likely to be hit with more bills, for example in September if you have children and have a lot of back-to-school costs. Having a clear financial plan that maps out your expenses in advance will certainly help a lot. Creating a plan and having a budget in place may not be enough. You will need to monitor your plan and budget each month and adjust accordingly as there is always a chance that there will be other expenses that arise which you had not foreseen.
Managing Your Cashflow
You may be in a well-paying job or own a business that makes a healthy profit at year-end.
However, there may be times throughout the year that cashflow is a bit tighter.
For example; if you own a business that sells to schools you may find the summer months tighter in terms of revenue generated and therefore need to be certain that you have cash in the bank to pay for any expenses that arise during that time period. If you are an employee of a company and only do seasonal work, you will need to save some of your salary for times when you are not working and so forth. Creating a cashflow budget that shows your income/revenue generated and expenses each month is always a good idea.
Reduce Interest Payments
From time-to-time, an individual or a business may need to purchase items with their credit cards or indeed take out a loan to finance something such as a holiday, a new car or piece of equipment for the office. Having a strong financial plan in place and factoring in any interest payments on loans taken out will not only help your cashflow but help avoid paying additional penalties or extra interest payments should you miss any repayments.
Staying Tax Compliant
Whether you are a sole-trader or a big business you will have to pay tax on your earnings. Make sure to work with your accountant and factor this into your financial plan. Paying the correct amount of tax and on time will save you facing fines and penalties thus saving your business time, hassle and money in the long run. Financial Planning will help safeguard against this.
How to set up a Financial Plan
IFC Finance are experts in helping individuals and businesses with their Financial Planning.
IFC Finance are a long-established firm of Financial Advisors operating in Dublin and are regulated by the Financial Regulator.
All we ask is for one hour of your time in any one year!
Contact IFC Finance today for advice on how to set up a Financial Plan that works for you or your business.
- Tel: 01-6601 016
- E: firstname.lastname@example.org