To plan means charting your future course of action in advance and organizing activities and individual and group efforts to work towards the achievement of goals. Financial planning involves the managing of financial affairs of a business or an individual.
Financial planning means creating and employing plans to meet defined financial objectives. The firm must decide in advance how it will arrange funds for its working capital requirements and for investment in long term assets. This process of estimating the fund requirements of a business and determining the sources of funds are an important part of financial planning. Financial planning takes into consideration the growth, performance, investments, and requirements of funds for the business for a given period of time. It provides a detailed plan of action for reducing uncertainty and for the proper direction of individual and group efforts. » Read more: Financial Planning