Knowledge

1. Financial Planning
Khin Yee Mon Thant

2. List to do for Financial Planning
Investment Planning
Cash flow Planning
Tax Planning
Budgeting
Financial Statement

3. Investment Planning
 Purpose: to get $1,000,000 income.
 Amount to invest: $100,000
 Time-frame: within 1year
 Risk level: each month you will get $10,000 to safe
investments.
 What to invest in - fit the objective you have outlined.

4. Cash Flow Statement
Cash Inflow & Outflow
 Cash flow from operating activities is the amount of money
the company receives (inflows) from its core business of
manufacturing and selling finished products or providing
services along with outflows such as payments for
expenses.
Items included in cash inflows from operations are:
 Cash receipts from sales
 Cash received from earnings on investments
 Received for interest
 Increases accounts receivable, inventory and prepaid
expenses
 decreases in accounts payable

5. Cash outflows from financing are related to changes
in debt and stockholder equity.
Increases in debt, bonds and notes payable
Increases in capital from stockholders
Payments for stock buybacks
Payments on loan principals
Payments of dividends.

7. Types Of Tax
 Income Tax - income taxes on personal and business revenue and
interest income.
 Property tax - is imposed on the value of real estate or other
personal property.
 Sales tax - is most often used as a method for states and local
governments to raise revenue

8. Tax Planning
 it is an arrangement of an assesses business or
financial dealings, in such a way that complete tax
benefit can be availed by legitimate means, i.e. making
use of all beneficial provisions and relaxations
provided in the tax law, so that the incidence of the tax
is minimum.

9. Types of Tax Planning
1. Short-range and long-range Tax
Planning: The tax planning which is made
every year to arrive at specific or limited
objectives, is called short-range tax
planning. Conversely, long-range tax
planning alludes to such practices
undertaken by the assesse which are not
paid off immediately.
2. Permissive Tax Planning: Tax planning,
wherein the planning is made as per
expressed provision of the taxation laws is
termed as permissive tax planning.
3. Purposive Tax Planning: Purposive tax
planning refers to the tax planning method
which misleads the law.

10. Budgeting
 Budgeting is the process of creating a plan to spend
your money. This spending plan is called a budget.
 Creating this spending plan allows you to determine in
advance whether you will have enough money to do
the things you need to do or would like to do.

11. Budget Forecasting & Planning
 spending plan or budget for 6 months to a year down
the road
 forecast which months your finances may be tight and
which ones you'll have extra money
 Short-term budgets typically only cover a one-year
span of time or less.
 Long-term budgets cover time periods of one-year or
more and are usually are quite general
 cash budget tracks the amount of cash spent and taken
in during a period and compares it with the goals for
that time frame.