Planning for businesses provides several crucial benefits, such as financial planning, setting goals and objectives, and identifying areas of strength and weaknesses. Business plans help all companies plan for the future by taking into consideration short-term and long-term goals, such as projected revenue and ideal sales volumes. Planning also allows companies to examine the resources they have, including personnel and finances, and how to use those resources to meet certain goals.
Business plans are written documents and spreadsheets that allow managers and executives to look at their companies from a distance. They examine the daily and long-term operations of their organizations to identify areas that need improvement, as well as departments or segments that are doing well. While information about improving operations internally are made during individual conversations with employees and through meetings, plans allow managers to clarify and specify the roles and expected duties of employees.
Companies can also present written plans to external partners, such as banks and corporate partners, to enlist their help for acquiring and overseeing loans. A well-drawn business plan gives the lenders a good idea on where the company's future is headed, and that the company can pay back the borrowed money without any issues.Learn More
There is no such thing as a 401(b) plan, but according to the official website of the Internal Revenue Service, a 403(b) plan is a retirement plan similar to a 401(k) plan that allows employees to contribute a portion of their salaries into individual retirement accounts. Employers eligible for this plan include public schools, churches and other tax-exempt organizations.Full Answer >
According to Savingforcollege.com, a 529 plan is a type of savings plan intended to help families save money for the cost of a higher education. The plan was named after Section 529 of the Internal Revenue Code and is operated by educational and state institutions.Full Answer >
Although details of 529 plans vary from state to state, basic rules are that each plan has a single custodian and beneficiary, the funds in the plan are administered by the custodian until they are disbursed, the funds can be used only for education-related expenses and total contributions cannot be greater than qualified educational expenses. These expenses include tuition, room and board, books, fees, supplies, and computer software and hardware.Full Answer >
The U.S. Internal Revenue Service describes 403(b) retirement plans as plans that allow an employee to defer a percentage of his pre-tax income into an account where taxes remain deferred until distribution. These plans work similarly to the 401(k) plans offered by for-profit organizations, but 403(b) plans are only available to employees of public education systems, churches and tax-exempt charities and non-profits.Full Answer >