Financial planning means a process of creating a financial plan for a company. The primary element of financial planning is the capital requirements planning and liquidity planning. This involves expected revenue, which is to be balanced against the corresponding expenses within a specific time period. Two types of financial planning exist: strategic (long-term) and operative (short-term).
- Determining of a balanced, optimal liquidity
- Achieving financial security
- Appraising and accounting for the level of productivity