Importance of Financial Planning | Primassure LLP

What is Financial Planning?

Financial planning is the practice of putting together a plan for your future, specifically around how you will manage your finances and prepare for all of the potential costs and issues that may arise. The process involves evaluating your current financial situation, identifying your goals, and then developing and implementing relevant recommendations.


Financial planning


Importance of Financial Planning


Availability of funds Anytime

The main objective of financial planning is that sufficient fund should be available in the company for different purposes such as for purchase of long-term assets, to meet day-to- day expenses, etc. It ensures timely availability of finance. Along with availability financial planning also tries to specify the sources of finance.

Financial Control

Financial planning acts as basis for checking the financial activities by comparing the actual revenue with estimated revenue and actual cost with estimated cost.

Proper Finance Utilisation

Finance is the life blood of business. So financial planning is an integral part of the corporate planning of business. All business plans depend upon the soundness of financial planning.

Investing in Right Projects

Financial plan suggests how the funds are to be allocated for various purposes by comparing various investment proposals.

Future financial requirement

Financial planning relates present financial requirement with future requirement by anticipating the sales and growth plans of the company.


Conclusion

Always seek for investment opportunities that harness the power of compounding and provide long-term advantages. Starting early is usually advantageous. As you grow as an investor, you should also examine your investing objectives in a business on a frequent basis.


Website: Primassure LLP

Blog: Best Investment Plans


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