What is Financial Operating Plan (FOP)?
Financial operating plan is a working strategy describing the earnings and costs over a time period.
A Financial operating plan uses previous activities, earnings and costs to prediction what to expect in the following years. It then features previous and recent styles into the planning so as to most perfectly prediction what is to come. It will determine objectives for areas such as cost management, sales, pay-roll, etc, as well as create an income projector screen. An excellent financial working strategy will need to be revised and modified due to any outstanding events with regards to financial situation, as well as to see if it is still based on the unique circumstances. If prepared and revised accordingly, an FOP can be a useful tool in developing and handling the budget, enhancing control of management functions and ultimately developing productivity. An excellent working strategy can aware a trader to changes that must be made to ensure a simple conversion through life’s financial stages, such as reducing spending or changing resource allowance.