Financial Operating Plan - FOP

A financial operating plan, or FOP, includes all of the ins-and-outs of revenues and costs over a specific time period for running a business or organization.

A well-rounded financial operating plan will include a cash flow projection, a budget, sales projections, and payroll costs at minimum. FOPs use the past to help project the future, combining historical revenues and costs with expected changes and trends.

Financial operating plans that are kept up-to-date can be used by management as a tool for...well...managing things for a business. By sticking to the plan (the budget) and keeping an eye on actual cash flow compared to projected cash flow, a FOP can be the ultimate business plan.