Financial Planning

Financial planning is a weapon of great importance among organizations in decision-making processes. For this reason companies take very seriously this tool and devoted abundant resources. Obtain this financial strategy is one of the final objectives of planning; but this does not occur with comments lightly, only occurs after an extensive analysis of all the effects, positive and negative, which are presented for each decision taken. These decisions should be taken as a whole and not separately already that this could cause problems to not take into account decisions that bring with them implications for other sectors of the company. Optimising: There is no one perfect plan. To achieve a close to the optimal plan carried out processes of trial and error.

Good planning should lead to the directors to take into account developments that can give to the fret with the good performance of the company or at least leads to hinder it, this in order to take measures that counteract these effects. All analyses and observations lead us to think that planning isn’t only foresight, because anticipating is to take into account the likely future leaving aside how unlikely or surprises (desirable or undesirable). THE requirements for planning effective are: 1. forecast: must be the probable and improbable, is of benefit or detriment to the company. 2. Optimum financing: There is an optimal plan. Financial planners have to face matters without resolve and cope the best thing which can, based on your criteria.

Balance debt, income, costs, cost of capital, rate of return, etc., is not easy but is the task of the Chief Financial Officer of a firm. 3 Look at the development of the PLAN: observe if the path that has been taken has been viable and if it does not try to make any changes which are necessary. long term plans serve as points of reference for judging subsequent behavior. Another point that the financial planner should be careful, is not engage too much in details because they can overlooked items of great importance within the strategy. There is a theory that leads to the optimal financial plan, planning is done through a process of trial and error before you opt for a plan definitely, varied strategies based on different future events can be formulated. When projected good amount of plans used planning models that can predict the future consequences, although they do not give the optimal plan, do make the task simpler and more abbreviated and we can get close to him.