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Financial Planning and Control

Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Financial planning and control
is a key process of Corporate Performance Management. Its functions include:

  • providing internal guidance in planning, steering and monitoring value creation through the control of income-statement, cash-flow and balance-sheet value drivers;
  • providing external guidance in supplying stakeholders (shareholders, banks, customers, suppliers, government) with key corporate information to enable them to assess economic and financial performance appropriately and rate the company’s creditworthiness accordingly; and enhancing statutory compliance and control capabilities.

Objectives of Financial Planning:

  • Determining capital requirements- This will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements.
  • Determining capital structure- The capital structure is the composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term.
  • Framing financial policies with regards to cash control, lending, borrowings, etc.
  • A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment.

cash flow planning

About Tagetik Software

Tagetik understands the complex challenges that face the Office of Finance and translates that knowledge into intuitive, enterprise-scale performance management software solutions that drive business results.We’ve built-in the financial intelligence so CFOs, finance and operations executives can orchestrate some or all processes in one place. More than 850 customers across 35 countries count on Tagetik to improve efficiency, reduce risk, save money and deliver results.We get Finance.You get results.

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