What is Financial
Planning?
Financial planning for a business is simply that – planning
the finances of the business. It is where the financial statements
of the business will reflect its financial condition and thus help
it to identify its strengths and weaknesses.
Financial planning will enable the owner of the business to use
projections and other financial performance criteria to plan for
the capital, assets and personnel requirements of the business in
order to maximise its return.
Financial planning is central to the business plan. It is the
basis on which business decisions are made in order to secure the
financial future of the operation.
Basics of Financial
Planning
Financial planning is the foundation of every successful business.
The planning should be carried out once a year and revised monthly.
This planning will include comparing financial projections with
actual results.
Financial planning has 2 main objectives.
- It helps the business owner make business decisions about the
fi
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