Importance of Financial Planning:
(i) It helps in forecasting future happenings under different situations.
(ii) It helps in avoiding business shocks and surprises and volatilities and helps the company in preparing for the future.
(ii) If helps in coordinating various business fúnctions, e.g, sales, marketing, production etc.
(iv) Proper Utilisation of funds can be done by detailed plans of action prepared under financial planning reduce waste, duplication of efforts, and gaps in planning.
(v) It provides a link between investment and financing decisions on a continuous basis.
(vi) By spelling out detailed objectives for various business segments, it makes the evaluation of actual performance easier.