FINANCIAL PLANNING AND FORECASTING

NEW HORIZON COLLEGE OF ENGINEERING

28-07-2022
ADITYA
 FINANCE
PLANNING & FORECASTING

INTRODUCTION TO FINANCIAL
PLANNING

It refers to the planning or predetermining of future financial activities for

the achievement of the goals of the firms.it is an intellectual process, which
decides in advance the goals, policies, procedures, programs to deal with
the financial activities of the enterprise. It aims is to estimate the capital
requirement and determine its composition. It starts from sales forecasting.
Financial planning takes into consideration for the various purpose that is
for growth, survival, performance, funds requirement etc of the enterprise.
Financial planning involves the short term planning as well as long term
planning.it indicates the capital structure of the organization. mostly
financial planning is helpful for the achieving of co-ordination between
various function. There is hardly any aspect of a business which does
not have both financial consequences and financial requirements.
Financial planning mainly deals with the uses of funds and sources of
funds.

Financial planning includes the following:

 It includes the financial resources that are required to meet the

operating program of the company .

 To work out as to how much of these requirements are to be met by

generating funds internally by the company and how much is to be
obtained from outside the company.

 To develop the best possible plans for obtaining the funds needed
from the external sources.

 To establish and maintain a system of financial controls for

governing the allocation and the use of funds.

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 FINANCE
PLANNING & FORECASTING

 To formulate a programed for the provision of the most effective

relationships between product-cost-profit.

 To report these analyzed facts to the top management of the

enterprise.

 To make recommendations relating to future operations.

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