Capital Plan Template
The Capital Plan Template should align with the business plan to ensure adequate financial resources are available, and to identify best sources of capital considering the cost of capital (and/or other relevant analysis) and ideal capital structure.
The CFO should create a five-year Capital Plan that identifies the following, at a minimum:
- Working Capital Requirements (overall operating aspects such as working capital, available cash reserves, and credit ratings
- Dividend Policy
- Financial Forecasts
- Accounting and Control Plan (actions and milestones required to carry out the capital plan)
The CFO should present the RC1010-3 CAPITAL PLAN to Top Management and the Board of Directors for review and approval. The CFO should regularly (e.g., monthly, quarterly) review the results of executing the Capital Plan and verify that:
- Financial resources are available in a timely manner to execute the business plan;
- Key analysis goals are being met (i.e. cost of capital, debt/equity, shareholder value, payback period); and
- Overall capital structure and financial position of the company remain healthy and are improving.
The CFO should also present recommendations for improving the Capital Plan Template, as well as required corrective actions to Top Management and the Board of Directors.
Capital Plan Template Details