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Financial planning plays a vital role in the success of every organization and an organization does not exist without a proper financial planning. This is the next task of an organization after setting their objectives and vision. A proper financial planning determines if the set objectives are achievable or not. This is a not a small task but it involves different set of activities which include assessing of the business environment, identifying the resource required to achieve set goals, analyzing the cost of resources, and finally identifying if any risk is associated with the set budget and objectives. Every financial planning should have a proper planning horizon. This is the time frame of the plan. Some financial plan can be short term while some are set for long time frame. It completely depends on the organization but without a proper financial planning a company will never be able to achieve success.
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