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organize your finance for 2020
Post By: admin March 20 2020

How To Organize Your Finance For 2020

In this burgeoning business world, a better way to start 2020 is by organizing your finance. Planning, the stepping stone to organizing, create a clear picture of a fiscally sound future. The efficiency of any business is portrayed in its smooth functioning without running out of cash and in securing funds for long-term. Sufficiency of funds helps in making prudent decisions on cash flow. Organizing finance is an indispensable tool for a standardized working environment.

Financial Planning involves estimation of capital, developing financial policies with regards to investments and dividends. Financial planning helps you determine your short and long-term financial goals and objectives. And it creates a balanced plan to meet those goals such as Tax planning, prudent spending along with careful budgeting to help you to keep more of your hard-earned cash. 

Types of Financial Plans

Financial plans consider future fund requirements. There are three major types of financial planning. They are:

  • Short-term Financial Plan

The short-term financial plan determines that the financial goals and the investments needed for one year or less than one year. Short term financial plan is less uncertain than a long-term plan and it is mainly concerned with creating an emergency fund. The main reason behind generating emergency funds are helpful in meeting medical emergencies and temporary income loss.

  • Medium-term financial plan

The financial plan for a period of five to seven-year or more than one year and up to seven-year comes under medium-term plans. 

  • Long-term financial plan

The long-term financial plan is for periods over seven years and beyond. Planning for the long-term is essential to enjoy financial assistance for the long run of the business. The long-run financial asset helped to achieve the desired goal & profit for the organization.

Importance Of Organizing Your Finances For Your Business

To allocate the funds, we must maintain a reasonable balance between inflow & outflow of funds. It can be done through scrutinized analysis with supporting documents. Ensuring adequacy of supplier’s funds, investments along with implementing growth and expansion programmes helps in long-run survival of the company. Since the market is dynamic in nature a well-organized plan can reduce the uncertainties regarding the trends. To ensure stability and profitability the following steps to be followed in financial planning:

  • Assess the Situation

During the financial planning process, you can assess your current financial position with regard to revenue and expenses. Preparing a list of current asset and debt balances and amounts spent for various items gives you a foundation for financial planning activities. 

  • Setup Your Bank Feeds

A bank feed is an accounting software which records the bank account transactions. It is fully automated. By setting up the bank feeds for businesses, you can match a transaction in a bank feed with a sales invoice awaiting collection or a bill awaiting payment. This cuts out hours of manual data entry required to reconcile accounts. It helps to produce error free documentation and accuracy in accounting information.

  • Reach Out For Help

Reaching out to a financial advisor prior to making financial planning to your company is a best choice. A financial planner is a professional who helps you to organize your finance and projects the results of your savings and investments.

  • Know Your Financial Goals

The owner should periodically analyze the company's financial values and goals. It involves identifying how the company feels about money and why company feels that way. The purpose of this analysis is to differentiate company’s needs from their wants. Financial goals are vital for planning. These goals vary from spending income to investing in extensive business plans for maintaining financial security of the firm.

Collect And Write Down Your Assets And Liability

Liability is an obligation owed to somebody. Liabilities are companies’ financial debts that arise out of business operations. They can be limited, or unlimited liability. 

Asset is something that an entity has acquired or purchased, and that has money value. An asset can be (1) something physical, such as cash, machinery, inventory, land, and building, (2) an enforceable claim against others, such as accounts receivable, (3) right, such as copyright, patent, trademark, or (4) an assumption, such as goodwill. Assets shown on their owner's balance sheet are usually classified according to the ease with which they can be converted into cash.

  • Calculate Your Monthly Budget: Income Vs Expenditure

Making a budget is the most important step you can take to get out of credit and debt faster, yet the high percentage of people with high debt shows but few seem to realize that. What exactly is budgeting? Its the ledger detailing of spending, investment of fund, Estimation, and allocation of money to cover the expenses related to housing, transportation, etc.

  • Calculate Your Overall Cash Flow

To calculate cash flow, create a spreadsheet where you can track all revenue, like income and investments, and keep track of all expenses. Add up all the incoming revenue and then add up all expenses. After your columns are totaled, subtract your costs from your revenue to get your cash flow. A cash flow statement used with the other financial statements provides information that enables users to evaluate the changes in net assets of an enterprise. The financial structure includes the liquidity, solvency, and adaptability of the organization to this dynamic environment.

  • Get A Hold Of Your Credit Scores and Reports

A credit report is a detailed breakdown of an individual's or company’s credit history prepared by a credit bureau. Credit bureaus collect financial information about individuals and create credit reports based on that information, and lenders use the reports along with other details to determine the loan applicant’s creditworthiness.

  • Evaluate Your Personal Finance

At the end of every month, many individuals look at their bank and credit statements for analyzing their financial position. For evaluating their personal finance, they maintain accounting for income and expenditures and have personal financial statements. It is also used by corporations; financial statements provide you with an indication of your financial condition and can help with budget planning. 


The purpose of financial planning is to provide you with two things: an in-depth analysis of your current financial position, and... a general plan to help you to pursue your future goals and objectives. There are so many software developed for helping the companies for financial planning and assistance one of the greatest innovations in accounting, bank feeds have heavily reduced the amount of data entry in a business. 

CDA being a fortunate group among the firms in Dubai. We offer financial assistance by providing financial services such as Internal Auditing, Tax Auditing, Management Accounting and Bookkeeping, and VAT Consultancy and we take a strategic approach for providing services to our customers. We provide a wide portfolio of accounting and bookkeeping services and mainly focused on workmanship and professionalism. The key success of our building network is the hands of specialized experts and affluent clients. We focus on creating quality workspace and to build a new culture of compliance.