What is the definition of financial planning?

Financial planning means to prepare the financial plan

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

There is no single perfect definition of financial planning. Broadly the definitions are in use are:

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.

Financial planning denotes the process of determining whether and how an individual can meet life goals through the proper managment of financial resources. Personal financial planning process or financial planning process denotes the process which typically includes but is not limited to these six elements: Establishing and difining the client-planner relationship, gathering client data including goals, analysing and evaluating the client's financial status, developing and presenting financial planning recommendations adn/or alternatives, implementing the financial planning recommendations, and monitoring the financial planning recommendations.

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 timeframes involved.

The Financial Planning activity involves the following tasks;----

• Assess the business environment
• Confirm the business vision and objectives
• Identify the types of resources needed to achieve these objectives
• Quantify the amount of resource (labor, equipment, materials)
• Calculate the total cost of each type of resource
• Summarize the costs to create a budget
• Identify any risks and issues with the budget set

Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set.

Financial Planning mean how we use our finance in better way that we get maximum profit to invest by minimum level of investment.

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.