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    Financial planning is a critical process for ensuring long-term financial security. It involves determining capital requirements and structure, framing financial policies, and achieving life's financial goals. The objectives of financial planning are to determine capital needs, debt-equity ratios, and maximize returns through efficient use of resources. An important benefit is that it provides stability, growth, and reduces uncertainties through adequate and effective financial management.

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    Rough

    Uploaded by

    rajivrvd
    14 views4 pages
    Financial planning is a critical process for ensuring long-term financial security. It involves determining capital requirements and structure, framing financial policies, and achieving life's financial goals. The objectives of financial planning are to determine capital needs, debt-equity ratios, and maximize returns through efficient use of resources. An important benefit is that it provides stability, growth, and reduces uncertainties through adequate and effective financial management.

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    Financial planning is a critical process for ensuring long-term financial security. It involves determining capital requirements and structure, framing financial policies, and achieving life's financial goals. The objectives of financial planning are to determine capital needs, debt-equity ratios, and maximize returns through efficient use of resources. An important benefit is that it provides stability, growth, and reduces uncertainties through adequate and effective financial management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    14 views4 pages

    Rough

    Uploaded by

    rajivrvd
    Financial planning is a critical process for ensuring long-term financial security. It involves determining capital requirements and structure, framing financial policies, and achieving life's financial goals. The objectives of financial planning are to determine capital needs, debt-equity ratios, and maximize returns through efficient use of resources. An important benefit is that it provides stability, growth, and reduces uncertainties through adequate and effective financial management.

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    Download as ppt, pdf, or txt
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    FINANCIAL PLANNING

    • Financial planning is a critical exercise in ensuring


    long-term financial security.

    • A financial plan is a road map to help you achieve


    your life’s financial goals
    • Definition of Financial Planning
    • Financial Planning is the process of estimating the
    capital required and determining it’s
    competition. It is the process of framing financial
    policies in relation to procurement, investment
    and administration of funds of an enterprise.
    Objectives of Financial Planning

    • Financial Planning has got many objectives to look forward to:


    • Determining capital requirements- This will depend upon factors
    like cost of current and fixed assets, promotional expenses and
    long- range planning. Capital requirements have to be looked with
    both aspects: short- term and long- term requirements.
    • Determining capital structure- The capital structure is the
    composition of capital, i.e., the relative kind and proportion of
    capital required in the business. This includes decisions of debt-
    equity ratio- both short-term and long- term.
    • Framing financial policies with regards to cash control, lending,
    borrowings, etc.
    • A finance manager ensures that the scarce financial resources are
    maximally utilized in the best possible manner at least cost in order
    to get maximum returns on investment.
    Importance of Financial Planning

    • Financial Planning is process of framing objectives, policies, procedures,


    programmes and budgets regarding the financial activities of a concern.
    This ensures effective and adequate financial and investment policies. The
    importance can be outlined as-
    • Adequate funds have to be ensured.
    • Financial Planning helps in ensuring a reasonable balance between
    outflow and inflow of funds so that stability is maintained.
    • Financial Planning ensures that the suppliers of funds are easily investing
    in companies which exercise financial planning.
    • Financial Planning helps in making growth and expansion programmes
    which helps in long-run survival of the company.
    • Financial Planning reduces uncertainties with regards to changing market
    trends which can be faced easily through enough funds.
    • Financial Planning helps in reducing the uncertainties which can be a
    hindrance to growth of the company. This helps in ensuring stability an d
    profitability in concern.
    financial planning process
    • 1) determining your current financial situation
    • (2) developing financial goals
    • (3) identifying alternative courses of action
    • (4) evaluating alternatives
    • (5) creating and implementing a financial
    action plan, and
    • (6) reevaluating and revising the plan.

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