Financial planning is a core to the main planning. It is an inseparable part of overall planning of enterprise. It plays important roles in an enterprise as it fixed financial objectives, formulates capital structure, raise funds and ensure proper utilization of funds. It is equally important for all types of organization whether it is small, big and medium size. Main benefits of financial planning are as follow:- The success of entire firm: - Every function of enterprise i.e. production, marketing, purchasing etc. all depends upon the financial function. The firm can avoid the possibilities of inadequate or excess capitalization which leads to wastage of resources. Economy and coordination: - financial planning minimizes the wastage in the complex operative process. Coordination is needed due to technological developments. Increased rate of interest, dividend is possible only through effective financial planning. The optimum capital structure at minimum cost: - financial plann...
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