Financial Planning

Overview

It is a financial plan of all the upcoming cash flow and for the recognition of the financial needs of the organization. This planning is done to get prepared for the upcoming events and it acts as a guide in future. Its helps the organization by letting them know when they have to control their income and expenses so that the organization money gets saved and the goal is achieved.

Benefits

1. Bring out the financial goals so that we get to know that how much money we require to achieve goals.
2. Prepare the company for all the emergency which can be occurred by keeping aside financial funds.
3. Provide financial security to the organization and help the people to get secure family finances.
4. It helps to control the finances and it also helps to be independent and pay off loans.
5. It helps to get the early retirement which is the need for all and by the financial plan we can safe a lot of money.

Ways to create financial planning

1. Review the organizations strategic plan like what all do we need to have and what all we don’t want.
2. Create the estimations like preparation of estimated income of the organization.
3. Arrange the financing of the organization with the help of financial estimation.
4. Plan for emergency source of money.
5. Monitor the actual performance with the estimate.
6. At last get help from the expert incase of any problem.

Types of financial planning

1. Cash flow planning- This type of planning look at all the assets and the income of the organization and balance them to the liability.
2. Insurance planning- This type of planning plays a very important role in protecting a family, business, home and unexpected events.
3. Tax planning- This type of planning helps the organization and the people to boost their financial saving by reducing the amount of taxes.
4. Real estate planning- This type of planning reduce the uncertainties of the organization which can be occur in future by boosting the value of estate and reducing expenses.

Uses of financial planning

1. It helps us to know where our business stands and help us to make better decision in future.
2. It provide us necessary questions and help us track our path of goal.
3. It helps us to make all the decisions properly.