Mr Muyibi
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AC 2.2 FINANCIAL PLANING ‘’is the process of estimating the capital required and determining it’s competition, it is a process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise’’ according to (www.managementstudyguide.com/financial-planing), financial planning is very important for good management, good financial plan has to consider all company’s strength and weaknesses.
IMPORTANCE OF FINANCIAL PLANING
A) It helps to maintain a reasonable balance between outflow and inflow of funds so that stability is maintain, this is because the organisation can keep a record of all their financial transactions.
B) It helps to maintain adequate level of funds in the business as financial stability is very important.
C) It helps suppliers of funds to invest in organisations that exercise financial planning
D) It helps organisation plan for future uncertainty by adjusting to market trends as they have enough funds for future uncertainty.
E) It helps organisation to undergo expansion and growth as this is very vital to the future of the organisation.
F) It helps organisations to plan, monitor and achieve its profit target
G) It helps an organisation to maintain a sound level of financial stability and liquidity, this make the organisation to be credit worthy to lenders.
H) It helps an organisation to run a smooth and efficient operation as operational demands are catered for and raw materials are made available in the production line to meet deadline.
2.3 INFORMATION NEED FOR DECISION MAKERS
Financial planning and financial information is very important to different decision makers as it enable them to make very important decisions about the company regarding their financial interest.
LENDERS, are fully responsible for assessing whether the customer can afford the loan, and they have to verify the customer's income ‘’ The UK residential mortgage market has grown to the point where there...
IMPORTANCE OF FINANCIAL PLANING
A) It helps to maintain a reasonable balance between outflow and inflow of funds so that stability is maintain, this is because the organisation can keep a record of all their financial transactions.
B) It helps to maintain adequate level of funds in the business as financial stability is very important.
C) It helps suppliers of funds to invest in organisations that exercise financial planning
D) It helps organisation plan for future uncertainty by adjusting to market trends as they have enough funds for future uncertainty.
E) It helps organisation to undergo expansion and growth as this is very vital to the future of the organisation.
F) It helps organisations to plan, monitor and achieve its profit target
G) It helps an organisation to maintain a sound level of financial stability and liquidity, this make the organisation to be credit worthy to lenders.
H) It helps an organisation to run a smooth and efficient operation as operational demands are catered for and raw materials are made available in the production line to meet deadline.
2.3 INFORMATION NEED FOR DECISION MAKERS
Financial planning and financial information is very important to different decision makers as it enable them to make very important decisions about the company regarding their financial interest.
LENDERS, are fully responsible for assessing whether the customer can afford the loan, and they have to verify the customer's income ‘’ The UK residential mortgage market has grown to the point where there...