What is financial planning explain with examples tools of financial planning and forecasting?

Financial Planning and Forecasting is the estimation of value of a variable or set of variables at some future point. This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings.

What is ERP in budgeting?

Enterprise Resource Planning systems or ERP systems have been around since the 1960s. They are systems used to gather, store, and analyze data arising from several activities within the organization.

What are the capabilities of ERP?

Here are a dozen capabilities to consider when evaluating ERP systems.

• Integration. Data silos lead to inefficiency, missed opportunities and departments working at cross-purposes.
• Automation.
• Data analysis.
• Reporting.
• Tracking and visibility.
• Accounting.
• Financial management.
• Customer relationship management (CRM)

What is ERP in strategic management?

Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll.

What are the different methods used in financial planning and forecasting?

While there are a wide range of frequently used quantitative budget forecasting tools, in this article we focus on the top four methods: (1) straight-line, (2) moving average, (3) simple linear regression, and (4) multiple linear regression.

What is the difference between financial planning and budgeting?

Budgeting looks at what’s happening with your financial picture now and helps you prioritize how you’re spending and saving your money on a regular basis. Financial planning, on the other hand, is a broader look at your entire financial picture over time.

What is planning in ERP?

Definition of enterprise resource planning (ERP) Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

What are the different quantitative approaches to forecasting?

Quantitative methods of forecasting exclude expert opinions and utilize statistical data based on quantitative information. Quantitative forecasting models include time series methods, discounting, analysis of leading or lagging indicators, and econometric modeling.

What is the difference between financial planning and financial forecasting?

A financial forecast is an estimation, or projection, of likely future income or revenue and expenses, while a financial plan lays out the necessary steps to generate future income and cover future expenses.