explain financial planning and various stages
Answers
financial planning means deciding in advance how much to send , on what to spend according to the funds at your disposal.
various stages of financial planning are :-
I) The financial planning begins with determination of total capital requirement . for this finance manager do the sales forcast .
ii) after estimating the requirement of funds the next step of financial planning is deciding how to raise the finance . finance may be internally generated by the business or capital may have to be raised from external sources.
III) financial planning is broader in scope as it does not end by raising estimated finance . It includes long term investment decision . in financial planning finance manager analyses various investment plans and selects the most appropriate. finance manager make short term financial plan called budgets.