Financial planning is essentially the preparation of blueprint of an organisation’s future operations. It is a process of estimating the fund requirement of a business and specifying the source of such funds.
See Also
Define 'Planning'. State any four points of importance of planning.Strategic Planning’s 4 Elements – Don’t Lose Sight of the Future - CFO SimplifiedThe following points highlight the importance of financial planning:
(a) It forecast the future under different business situations. It helps in preparing alternative financial plans to meet different situations.
(b) It helps in smooth running of business by eliminating shocks and surprise.
(c) It coordinates the various business functions.
(d) The detailed plan of action made under financial planning reduces wastage, duplication of efforts and gaps in planning.
