Financial Planning and Budgeting in UAE
We at JAXA know how important at the same time difficult it is to plan and budget your business. We work with top-class methods to efficiently plan to make budgeting much easier.
What is Financial Planning and Budgeting in Businesses?
It is a framework, comprehensive evaluation that explains the proper utilization and implementation of finance in different business domains for its future growth and development is referred to as financial planning. Financial planning is a definite task determining how a business entity will achieve its strategic goals. It is essential to start at an initial stage because established companies, over time, might have to undergo financial restructuring. Let’s have a glance at the benefits that you will be able to derive by implementing a financial plan. A financial plan helps in the following:
- Better management of finance
- It gives a holistic view of the business.
- Create integrated strategies and interconnect them with financial growth
When it comes to financial budgeting, it looks into allocating funds for a shorter duration. A financial budget is a plan for a specific period, generally a year. It generally focuses on the budget surplus or deficit at the end of the period.
Types of Financial Planning
Cash Flow Management
Cash-Flow gives insight into the inflow and outflow of cash while carrying out business activities. This helps to keep track of the cash-flow activities and change them accordingly if required.
Investment Management
This is another type of financial planning. Investments are meant to grow your money over some time. This includes investment in various domains like bonds, mutual funds, forex, etc. Investment management can help you uplift your financial scenario.
Insurance Planning
Insurance is another type of financial planning that is meant to cover unforeseen situations. Failing to plan for insurance can affect your financial planning to a great extent.
Tax Planning
Tax is one domain that businesses must avoid. It becomes a mandate to pay corporate and individual taxes depending on the profits earned. Tax planning is another area you need to look into when it comes to financial planning.
Real Estate Planning
Wealth creation can increase your financial position. Asset creation is a significant option with low risk and high investment return.
Types of Financial Budgeting
1. Zero-Based Budgeting
In this type, the baseline is considered zero instead of the previous year’s budget. The benefit of zero-based budgeting is that it is cost-friendly but involves a vast documentation process.
2. Top-Down Budgeting
Here, the top officials prepare the budget plan, which needs to be followed by the lower level of management.
3. Bottom-Up Budgeting
This is the exact reverse of the earlier one. Here, the inputs are fetched from the lower management and considered while the top management prepares the budget.
4. Activity-Based Budgeting
Here, the budget is prepared according to the organizational activities. Now, let’s get down to the process.
Avail best quality Auditing and Accounting services from JAXA
The expert will help to tackle business issues by following proper Accounting and Auditing guidelines will also assist you to scale up your business. JAXA also provides various other services such as Tax Services, Payroll Services, Cash flow forecasting and many more.
Advantages of Financial Planning and Budgeting in UAE
Widens Business Scope
Business experts are well-versed in the market scenario and can provide industry insights to contribute to your business growth. New ideas can be fetched from the information provided and you can work on improvising your business from several aspects.
Minimize Errors
The experts handle business professionally, which demands their reports to be error-free. Your helping hand can help you to prepare financial plans error-free which eases the implementation process to a great extent.
Streamline the Plans
While dealing with financial planning, one has to deal with many plans that might be implemented in the present and future. These plans need to be prioritized so that the immediate tasks can be completed on an urgent basis, followed by the later ones to carry out the business functions effectively and increase the business growth.
Better Risk Management
Professionals are experts when it comes to analyzing business risk. By availing of the service from business experts, you will reduce the business risk and at the same time, the existing trouble will be solved efficiently.
Saves Training Cost
Financial planning and budgeting decisions help you to analyze the routes for savings. Availing of the financial planning service from a professional would save the training cost you need to incur if you want to carry out the process in-house by training your available resources.
Address Budget
A financial plan helps you address the budget that needs to be fixed on different business aspects. The business budget needs to be distributed effectively so that each department of your organization can work efficiently and carry out the business operations smoothly.
Routes of Savings
The financial planning process helps pave out more savings and revenue generation pathways, focusing on the best possible ways to minimize unwanted expenses. Availing the financial planning services helps your business to identify new routes of profit generation. In -return, the business savings get leveled up, which can be used for future expansion.
What we provide
● We ensure that all the records are compliant with the International Financial Reporting Standards (IFRS)
● We are registered and approved auditors in major free zones in Dubai, making it easy to conduct audits in the free zone.
● JAXA has over 15 years of experience and a knowledgeable team of 75+ employees.
● Over a decade of quality service has made us one of Dubai’s most preferred auditing and accounting firms.
Process
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FAQs
What are financial planning and budgeting in businesses?
It is the framework that involves best practices to conduct and manage finance in an organization effectively.
Is financial planning necessary for businesses?
Yes, for any business, financial planning is necessary as it keeps your business in track and improves efficiency.
Who can help in financial planning for businesses?
It is better to outsource financial planning as such organizations work efficiently and dedicatedly for business services.
What are the types of financial budgeting?
The types of financial budgeting are
- Zero-Based Budgeting
- Top-Down Budgeting
- Bottom-Up Budgeting
- Activity-Based Budgeting