Financial Planning of Demo

Financial Statements

Definition of Financial Planning

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.

Objectives of Financial Planning

Financial Planning has got many objectives to look forward to:

  1. Determining capital requirements- This will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements.

Cash Flow Statement

Importance of Financial Planning

Financial Planning is process of framing objectives, policies, procedures, programmes and budgets regarding the financial activities of a concern. This ensures effective and adequate financial and investment policies. The importance can be outlined as-

  1. Adequate funds have to be ensured.
  2. Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.
  3. Financial Planning ensures that the suppliers of funds are easily investing in companies which exercise financial planning.
  4. Financial Planning helps in making growth and expansion programmes which helps in long-run survival of the company.
  5. Financial Planning reduces uncertainties with regards to changing market trends which can be faced easily through enough funds.
  6. Financial Planning helps in reducing the uncertainties which can be a hindrance to growth of the company. This helps in ensuring stability an d profitability in concern.
OPPORTUNITY
SAVE TIME
INCOME

Balance Sheet

  1. composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term.
  2. Framing financial policies with regards to cash control, lending, borrowings, etc.
  3. A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment.

Income Statement

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Brainstorming is the name given to a situation when a group of people meet to generate new ideas around a specific area of interest. Using rules which remove inhibitions, people are able to think more freely and move into new areas of thought and so create numerous new ideas and solutions

The management of resources according to a plan of economic or political development.

We’ve all heard the advice, and for most of our lives: you can do anything, as long as you work hard to get there. Hard work pays off. and I’d tend to agree with most of them. Hard work is important, and it separates you from the majority of the population who aren’t motivated enough to work hard for anything.

A big vision will take you far. I put this tip first because when things go wrong on the path to your success, and they will, keeping the big vision in mind will enable you to steer your way back to a successful course. It may not always be the course you imagined, but your big vision becomes your north star, which in turn helps you navigate and orient yourself through the darkness

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