Financial Planning

What is Financial Planning?

Discover the definition and importance of financial planning on this page. It involves estimating the capital required and determining competition, as well as framing financial policies related to procurement, investment, and administration of funds for a business.

It also has several objectives, such as determining capital requirements, capital structure, and financial policies regarding cash control, lending, borrowings, and more. The finance manager ensures that scarce financial resources are maximally utilised, considering the least cost to get maximum returns on investment.

Its importance:

• Ensuring adequate funds are available
• Maintaining a reasonable balance between outflow and inflow of funds for stability
• Attracting suppliers of funds to invest
• Developing growth and expansion programs for long-term survival
• Reducing uncertainties related to changing market trends through sufficient funds
• Ensuring stability and profitability for the concern by reducing uncertainties that can hinder growth.

Explore our financial planning page to gain more insights on how it can help you achieve your financial goals.