Financial planning

Financial planning

Financial planning means to prepare the financial plan. OR Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives.

A financial plan is an estimate of the total capital requirements of the company. It selects the most economical sources of finance. It also tells us how to use this finance profitably. Financial plan gives a total picture of the future financial activities of the company.

A financial plan is also called as capital plan.

Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the time-frames involved.

Financial Planning  mathematical Equation

Financial Planning=  Financial Resources (FR) + Financial Techniques (FT)

Types of Financial Plans