In any financial project or company, it is essential to perform a suitable economic and financial planning, allowing predicting the possible difficulties in order to take the corrective measures in time.
Besides, if it is a budding enterprise project, the economic-financial analysis, together with the market research carried out, will allow checking the feasibility of our business idea.
Any planning should include two kinds of analysis; the economic and the financial:
- Economic analysis: it measures the profitability and the influence of costs and incomes on it
- Financial analysis: it measures the company ability to pay; one of its main tools is the control of the cash flows, that is, the evolution of collections and payments.
The economic-financial plan might include several elements, but at least, it should have the next ones: