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.
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.
What the Seller needs to start the work
If Client wants to invest in stock Market , Mutual fund , Equity, Derivative. So He has to tell me How much Money he Wants to invest, For how much Time And What return he Except.
If he has a Manufacturing Firm , He wants to know How much Working Capital Required For the production,, and Business Type Product , All financial data and Manufacturing Related data , Finally First he has to tell me what he wants to know in financial planning and finance related work.