Financial Planning
Financial Planning A successful company has to have skilled workers in each level of the organization from top management to regular employees. A successful company must have good working relationship with suppliers and customers outside the organization as well. A successful company has to have enough funding to be able to execute the company’s plans and operations. Financial planning is a process that estimates the capital required and determining the company competition. It is important for a company to have financial policies in place for the organization to be successful. The objectives of financial planning are to figure out capital requirements because this will help determine cost of fixed and current assets. In the capital requirement process long and short term requirement has to be evaluated. A company must determine the capital structure of their organization, such as composition of capital and what capital needed for the business (Heer, 2012). In a business it is important to have a system in place to protect the lending and cash control situations. One of the positions that can help with financial planning is a financial manager, which is a manager that can make sure the resources of the company is being utilize to their best of the company ability. Financial planning is an important process that each company needs to use created objectives, implement policies and procedures. It is important to have adequate funds for the organization. Financial planning helps companies keep track of outflow and inflow of funds, which can create stability for the company (Ehrhardt & Brigham, 2011). It is vital for the company to make sure the suppliers investments are put back into the company. Financial planning is a process that can continue to help the company grow and expansion at the rate necessary for the company success. There is a lot of uncertainty with companies’ financial abilities but with the proper financial planning the uncertainty can be
References: Ehrhardt, M. C., & Brigham, E. F. (2011). Corporate Finance: A Focused Approach. South- Western Cengage Learing. Heer, R. (2012). How agile is your planning? Find out by measuring the ROI of your planning Software. Strategic Finance, 45. Murphy, D.S., Yetmar, S. (2010). Personal financing attitudes. Management Research Review, 33, (8). 811-817. Vietz, O. (n.d.). Financial Forecasting Tools. Retrieved from http://smallbusiness.chron.com /financial-forecasting-tools-4583.html