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Financial Planning

In: Business and Management

Submitted By Terene04
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Financial Planning

Lacardo Scott

Grantham University

Financial Planning

Financial planning is defined as planning or the future of your company to make sure you have positve cash income in upcoming years. Financial planning is very important when it comes to planning a business because if not done properly, your business is sure to fail. Financial planning is a process to help you make smart decisions about money that you business makes so your company can reach its goals. Smart financial planning determines the course of action the company will take, the tasks that need to be accomplished, as well as who is responsible for completing the tasks in the proper time and manner.
The success of any business is based on financial planning. Financial planning includes three categories: Strategic role of financial management, objectives of financial management and the planning cycle. When thinking of a financial plan, the company should come up with what is called a planning horizon, which is the time period of the plan.
A business’s main goal while financial planning is to make sure they have accurate cash management. By correctly guessing how much cash they are going to bring in and have available, leaves room for the company to invest and receive a higher return on their investments. Accurate cash management also allows a company to foresee any type of cash shortage that could likely come about anytime during the year. When a company is able to make these types of predictions, management is able to secure extra financing to help get the business thru the hard time it may be about to experience without further taking the company under. You can say that proper financial planning gives managers the ability to make better decisions for their business and also it allows them to do their job a lot better by seeing before hand the cash issues that may

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