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

1. The legal forms of business

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

2. 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
   

3. 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
   

4. 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
   

5. Bankruptcy and insolvency

• Legal and financial implications
   

6. 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
     

7. Business continuity

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

8. 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