Financial Planning is a process to define the goals, policies, programs, objectives, budgets, and procedures for managing the financial decisions of an organization. It is one of the significant steps in financial management. With the help of adequate financial planning, organizations can experience a stable and strong financial position. It includes the decisions or measures that should be taken so that the funds are utilized more effectively and efficiently. We, at BookMyEssay strike to make the topic easier for students to understand and also offer research paper topics guidance on financial planning subject.
Objectives of Financial Planning
The objectives of Financial Planning are stated in our Financial Planning assignment help in Australia as follows:
Deciding the capital needs: It depends on factors such as the cost of fixed and current assets, long-term planning, and promotional expenses. The capital needs should be looked at with short-term as well as long-term needs.
- Framing the financial policies regarding cash control, borrowings, lending, etc.
- Deciding the capital structure. It is the composition of capital; the capital proportion needed in a business. It includes decisions related to debt-equity ratio- short-term as well as long-term.
- The scarce financial resources are utilized in the best possible way to receive maximum returns.
The Significant Areas of Financial Planning
The major areas are discussed in our online help for homework on Financial Planning topics as follows:
- Cash Flow Management: Cash Flow Management is concerned with cash inflows and cash outflows. By considering both, you can decide whether the revenue generated by the company can meet the monthly expenses of a company. Cash flow analysis considers whether an organization is spending more than what it is earning.
- Investment Planning: Investment Planning is the collection or accumulation of funds to make huge investments for production. Examples of asset accumulation are the purchase of luxury items, cars, and a house. Life events such as marriages are a component of financial planning.
- Risk Management: Risk Management considers the unforeseen activities that might happen in the future. The primary risks include death, disability, health, loss of property, etc. A proper and complete financial planning can assist you include the potential areas of risks.
- Estate Planning: It involves planning the selling of the assets after the death of an individual. When a person dies, he has due tax to the federal or state government. This needs careful liquidation of a property that may not include the income of a person.
- Tax Planning: To use the taxation policies optimally and to derive the benefits of tax discounts and rebates offered by the government, you need to plan for tax. Tax management is important for people to receive maximum benefits. It is an important aspect, which requires finance management.
- Retirement planning: To enjoy a comfortable and happy retired life, you should plan at a very early stage that can secure your future against monetary uncertainties. Invest lesser amount if the beginning and build a huge corpus within 25-30 years’ period.