PDI - Business Financial Planning

Learning Outcomes

On completion of the module, students are expected to be able to:

• outline and assess the principal factors involved in the main legal form of business and the consequences of bankruptcy of insolvency;
• define and analyze the scope and the main features of business accounts and financial controls, taxation of business entities, and measurement and management of risks and return; and under different factors of the client’s consideration according to different business activities; and
• advise on adjustments to be made on risk management plans according to clients’ portfolio and needs.

Learning Contents

The legal forms of business

• Formation issues and practical consequences of the different legal forms
• Sole trader
• Partnership
• Unincorporated association
• Limited company
• The corporation

Business accounting

• Profit and loss accounts, balance sheets, cash flows and budgets
• Record keeping:- sales and cash receipts; cash disbursement; other journals
• Investment decision making

Taxation and Wealth planning

• Income tax
• Corporation tax issues including tax planning including extraction of funds, basis of assessment of gifts, benefits in kind, cars, living accommodation etc.
• How capital allowances are used
• Wealth, Asset and Estate planning, process and tools

Corporate finance, financial analysis and budgeting

• Corporate finance, financial analysis and budgeting
• Methods of raising finance business capital (types & sources), security, bank practice
• Sale and purchase of businesses and business assets
• Balance sheet analysis; income statement ratios
• Financial budgeting:- sales budget, cash budgets -budgetary considerations

Bankruptcy and insolvency

• Legal and financial implications

Risk management

• Introduction to risk management
• Objectives of risk management
• Steps in the risk management process
• Risk and general business insurance
• Personal risk
• Property risk
• Liability risk
• Pecuniary risk
• Business insurance coverage: auto insurance, office insurance, crime insurance; commercial liability insurance; workers’ compensation insurance; interruption insurance
• Employee Benefits
• Group life and health insurance
• Retirement plans: Qualified retirement plans; defined contribution plans; defined benefits plans; non-qualified retirement plans
• Pension Planning
• Use of individual personal pensions including self-invested personal pensions
• Use of MPF, group personal pensions, stakeholder pensions, and share incentive plans
• Protection insurance
• Share and partnership protection arrangements
• Trusts

Business continuity

• Keyman insurance
• Buy-sell agreement, share and partnership protection
• Disability buyout

Business practical financial planning application process

• Business practical financial planning application process
• Understand business financial objectives
• Collecting and analysing data
• Developing the business financial plan and presenting reasoned recommendations
• Implementation of the plan
• Monitoring of the plan
• Self insurance, retention and captive
• Corporate Governance