We explain what financial planning and what its objectives are. In addition, how it is classified, why it is important and examples.
In the field of administration and finance , financial planning or financial planning is known as the process of determining how an organization, company or person will manage its capital resources to achieve its established objectives. In simpler terms, it is developing a financial plan, ie a budget and / or a scheme of expenses that allows to organize managing money effectively and conveniently.
Its process must contemplate deadlines, costs and objectives in a detailed, personalized and organized manner, for which it usually uses the following stages:
In this way, it is usually exercised in advance, as a way of organizing the financial future of the organization , usually at the hands of financial advisors and expense planners, either own or outsourced.
Its fundamental objective is the elaboration of a finance plan , that is, a road map towards the business objectives set, in terms of the management of finance and capital resources. That is, a financial horizon, a money management strategy to get the most out of it in favor of the fundamental guidelines of the organization .
For this, any financial planning exercise must draw up a rigorous and detailed examination of the current financial statement and the consequences, positive and negative, that its determined management would entail in the short, medium and long term.
Of course, as there is no perfect or infallible plan
, this also involves forecasts and projections, in order to anticipate unforeseen events and to be as close as possible to the final objective.In conclusion, these objectives can be summarized in:
Based on its temporal scope, we can quickly distinguish two types of it, which are:
It is a vital tool for companies and organizations, especially when making decisions . Like people, companies have a budget and certain economic limitations within whose margins they must be managed to achieve their objectives, so a thorough plan on how to invest money is always a good idea . This is the reason why you invest so much in this sector of business administration.
It is extensive and complex, since it involves numerous variables and environmental studies . Recall that in these disciplines the boundaries between knowledge are mobile, they touch. It is possible, however, to appreciate the dimensions of it on this page and also on this page .
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