Answer: Meaning & Definition of financial planning.
Meaning: The term ‘financial planning’ refers to assessment of financial requirements and arranging the sources of capital. It is required not only to increase profit but also for survival of the firm. It can be implemented with an effective ‘financial plan’.
The financial plan includes information about the economic environment in which the business operates. It establishes targets of sales and profits and promotes co‐ordination of resources and efforts to reach these targets. To sum up, financial planning is ‘an advance programming of all plans of financial management’.
Definition of Financial Planning: According to J.H. Boneville, “The financial plan has two fold aspects, it refers not only to capital structure of the corporation but also to the financial policies which corporation has adopted or intends to adopt”.