Financial Planing And Budgeting Control
What is Financial Planing ?
Financial Planing is the process of meeting the organization goals through the proper management of the firm finances.
Financial Planing
It is the process of estimating the capital required and determinning it's competition.
It is the process of framing policies in relation to procurement,investment and administration of funds of an enterprise.
objectives of Financial Planing
1.Determining capital requirements with both aspects short-term and long-term requirements.
2.Depend on factors such as cost of current and fixed assets, promotional expenses and long-range planning.
3.Determining capital structure i.e., the composition of capital, the relative kind and proportion of capital required in the business. Includes decisions of debt/equity ratio both short-term and long-term.
4.Farming financial policies with regards to cash control, lending, borrowings, etc.
5.Finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximam returns on investment.