What is the Meaning of: Financial planning | Concept and Definition of: Financial planning
With their objectives, organizations and businesses are plans in which they detail the actions needed to achieve their ends. It is this process of developing, marketing and monitoring of the plans given the designation of planning.
Financial planning, which aims at maintaining the economic balance at all levels of the company, is present both in the operational field in the strategic. The operational structure develops on the basis of its commitment to the strategy.
The strategic area is formed by the (marketing) marketing and finance. It belongs to the marketing to formulate strategic trade alternatives, while the finance sector quantifies the strategies proposed by the marketing.
On the other hand, the operational division consists of sectors such as the production, administration, logistics and trade agency. All these divisions shall carry out the policies of the strategic plan.
That said, financial planning is designed to provide a structure following the commercial basis of the enterprise, through the implementation of a cost accounting and execution of financial statements.
Through financial planning, managers can quantify the proposals through the marketing and evaluate their costs.
In other words, it is financial planning which decides the course that the Organization must follow to achieve its strategic objectives in perfect harmony with all its members and its functions. Its location is important as well internment as the Party needing to make decisions related to the company (as the concession of credits, and the issuance or subscription of shares).