Financial planning

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).

Basic elements

• P&L planning
• Balance planning
• Investment planning
• Interest and amortisation planning
• Liquidity planning

Goals

• Determining of a balanced, optimal liquidity
• Achieving financial security
• Appraising and accounting for the level of productivity

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