Importance of Financial Planning
Financial Planning is a critical process in a business. It is one of the factors that may lead the entity to a
huge success if done effectively. Such importance of financial planning are the following.
1. Sufficient fund is secured for future transactions.
2. Help maintains a good balance between cash inflows and outflows to ensure stability of funds.
3. Help ensures the company that investors will continuously invest in the company considering the
relevance of the entity's financial plan.
4. A reliable financial plan contributes to the long-run survival of the company through growth and
expansion programs supported by adequate capital.
5. Minimize uncertainties in connection to market trends alteration which can be prevented through
sufficient funds.
6. Minimize uncertainties that may affect the company's growth. Financial planning helps in securing the
stabilization and profitability of the company.
Exercise: One paragraph essay
1. Aside from the importance of financial planning that was mentioned, what do you think are the other
significance of financial plans to business operating companies? Expound your answer.
Reference: https://www.studocu.com/ph/document/west-visayas-stateuniversity/bsis/technopreneurship-goods/45019734