This section is often carefully considered by potential investors. It helps investors to determine the financial solvency of your company. You will not just discuss your current financial state. In this section you will cover your financial past, your current state and your goals for the future. Include income statements over the last several years, balance sheets (both prior and projected), projections and available collateral.
A financial tool in a good business plan enables one understand his business financial position, develops his budget and determine how his finances will be allocated. It also calculates one's return on return on investment, analyzes his income statement, cash-flow, balance sheet, break-even point i.e. the analysis that tells one how much sales needed in order to cover expenses, which gives the basis for pricing his products and services, and at the same time calculates how much that is needed to finance one's business which helps in making his financial needs clear.