With a view to its objectives, the organizations and Business They draw up plans detailing the actions required to meet their goals. This process of preparation, implementation and monitoring of the plans is known as planning or planning .
The financial planning , which seeks to maintain economic balance at all levels of the company, is present in both the operational and strategic areas. The operational structure is developed based on its involvement with the strategy.
The strategic area is formed by the marketing (marketing ) and for finance . Marketing is responsible for formulating the strategic alternatives of the deal , while the finance sector quantifies the strategies proposed by marketing.
On the other hand, the operational division is formed by sectors such as production , the administration , the Logistics and the commercial office . All these divisions are responsible for specifying the policies of the strategic plan.
Financial planning, therefore, is responsible for providing a structure consistent with the company's business base, through the implementation of a Analytical accounting and of the design of the financial statements .
Thanks to financial planning, managers can quantify the proposals made by marketing and evaluate your costs .
In other words, financial planning defines the direction that an organization has to follow to achieve its strategic objectives through a harmonious action of all its members and functions. Its implementation is important both internally and for third parties that need to take decisions related to the company (such as the granting of credits, and the issuance or subscription of shares).
It is necessary to clarify that the financial planning can not only refer to certain financial projections that yields the financial statements of results and balances of a given indicator, but also includes a series of activities carried out at various levels: strategic level, functional level and operational level of a company.
Development of financial planning
In a planning process, actions are carried out that aim to improve or solve any problem that the company may be going through; for this it is necessary that the work of the different parts that conform it is reunited. Financial planning is responsible for moving to economic terms, the strategic and operational plans of a company, taking into account a time and a space in which they will be developed.
Through this type of planning the strategy of entrepreneurship can be visualized taking into account three extremely decisive issues: investments (know how to take advantage of the resources available), capital or loans (have a total knowledge of the structure of capital that is owned) and shareholders (Know what can be offered to those who wish to be part of the company, knowing what to expect in case of financial difficulties).
Within the financial planning process there are several branches, where each one is responsible for developing a certain task. For example, the process of budget planning He is in charge of addressing the issues that have to do with the money he owns and knowing how to choose where and when to invest it correctly over a long period of time. For its part, the administration process It is the cash flow that is responsible for the investment of money in the very short term, in a purely operational and immediate sense.
The development of the financial program begins with long-term planning where attempts are made realize the company's objectives, what you want to achieve and the vision you have in view of the future.