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Financial plan: what is it?
Financial plan: what is it?

Define financial goals based on your income and expense accounts, and project cash flow objectives based on these goals

Héctor Emperador avatar
Written by Héctor Emperador
Updated over a week ago

The Financial Plan in Holded is a functionality that allows you to establish and manage your financial goals by defining income and expense goals and monitoring their compliance in detail. In addition, it helps you to generate cash goals automatically.

The feature is divided into two views: Goals and Cashflow, which work together to give you a complete view of your company's financial health and facilitate strategic decision-making.

You can easily exchange views and see how the objectives entered in a Goals scenario automatically generate forecasts in Cashflow, obtaining a comprehensive view and simplifying the budgeting process.

This means that, without having to make two budgets, you will be able to make informed strategic decisions and optimize your analysis and planning process by having all the financial tools in one place.

In summary, with the Holded Financial plan, you will be able to:

  1. Define income and expense objectives.

  2. Project those objectives in the Cashflow view.

  3. Monitor and analyze those objectives, identifying deviations in order to take timely corrective actions.

All companies should have a financial plan, as it will allow them to make better financial decisions, as well as to continuously review the company's strategy and objectives.

It is advisable for all companies to have a financial plan, as it will allow them to make better financial decisions, as well as to review the company's strategy and objectives continuously.

Go to Analytics > Goals, or Treasury > Cashflow, to start using the tool. Learn how it works here.


Goals

This is the view, within the financial plan, that allows you to define, visualize and track revenue and expense goals (expected turnover, costs, etc.).

This shows you how your business is performing in terms of profitability, identifying areas of opportunity, or applying corrective measures if necessary.

From here you can define specific growth objectives and create different analysis scenarios to evaluate your decisions' impact on your company's profitability.

Continue learning about the Goals view here.

☝🏼 This personalized view of Goals should not be confused with the standardized accounting report, profit and loss account, from the Reports area. In it you can consult different results such as operating results, financial results, results before taxes, and results for the year.


Cashflow

Cashflow, within the Treasury Plan, is the view that allows you to define, visualize, and closely monitor payment and collection goals, that is your cashflow.

From this view, you can see projected targets based on those set in the Targets view and forecasts automatically generated from documents, such as invoices or payroll. This gives you a complete view of your business' cash flow and financial health.

In addition to setting specific goals and creating various analysis scenarios (cross-sectional to Goals view), this tool helps you anticipate liquidity needs and effectively manage your financial resources to make informed decisions.

Focusing on the actual movement of money, Cashflow is essential to ensure the sustainable growth of your company in the long term.

Check out this article to learn more about the Cashflow view.

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