1.
OBJECTIVES
The learners should be able to:
a. define financial planning;
b. explain the importance of financial
planning; and
c. illustrate the financial planning process.

2.
FINANCIAL
PLANNING

3.
How will you define the
word planning?

4.
Planning is very important
because it provides directions to
achieve the organization’s
objectives.
Planning is useless without
a strategy.

5.
Planning is very much related
to another management function,
controlling. These two management
functions reinforce each other, and both
are very important for the success of an
organization. Management planning is
about setting the goals of the organization
and identifying ways to achieve them.

6.
This maybe be broken down into
long-term plans and short-term plans. Long-
term plans reflected in a company’s
business strategy. In the process of
planning, resources have be identified.
These resources include work force
resources, production capacity, and financial
resources.

7.
STRATEGIC PLANNING
- helps in achieving the company’s
objectives. It is designed to guide the company
in operational and financial decisions.
- A strategic plan includes the vision,
mission, and goals set by the top level of
management. This plan will be the basis of
long-term decisions.

8.
TACTICAL PLANNING
- helps the company by
translating the strategic plans
into specific plans or actions carried
out by the middle level of
management.

9.
OPERATIONAL PLANNING
- involves day-to-day
operations carried by the lower-level
management. This plan transforms
the tactical plan into specific and
detailed objectives.

10.
Financial planning is the process of deciding
how an organization can accomplish its
financial goals and objectives. It is divided
into:
1. the long-term financial plan, also known as
strategic financial plan and
2. the short-term financial plan, also known
as the operating financial plan

11.
FINANCIAL PLANNING
WHERE YOU’RE
GOING VS. WHERE
YOU ARE TODAY:

12.
While a budget helps you map out
your key expenses and plan for the weeks and
months to come, a financial plan allows you to
set a course toward funding financial goals
that are 5, 10, or 20 years down the road.
A good financial plan may address
your income and expenses, taxes, insurance,
estate planning, retirement, education needs,
and other topics.

13.
WHY IS FINANCIAL
PLANNING
IMPORTANT?

14.
IMPORTANCE OF
FINANCIAL PLANNING

15.
1. Financial planning helps
managers assess the impact of the
strategy or actions on their company’s
financial position, cash flows, and
earnings and if there is a need for
additional financing.

16.
2. It helps the company in the
survival when uncertainties come along.
Risks are calculated and alternatives can
be done. Through financial plans, the
firm can adapt to the changes happening
in their environment.

17.
3. It gives directions to
the organization. Since plans are
made, the firm can make
necessary actions.

18.
IS IT IMPORTANT TO
HAVE A PERSONAL
FINANCIAL PLAN?

19.
For most people it is easier to
spend than save.
To track your expenses, so you
don’t spend more than you think you’re
spending.
You would like to achieve financial
independence or retire someday.

20.
WHY SHOULD YOU
DEVELOP A PERSONAL
FINANCIAL PLAN?

21.
• To help you achieve your financial
goals.
• To help you achieve financial
independence.
• To help you understand where all your
money is spent.
• To help you support those that have
supported you.

22.
STEPS IN
FINANCIAL
PLANNING PROCESS

23.
1. Set goals or objectives. The goals of a company
can be divided into:
• short-term goals (1 year)
• mid-term goals (3-5 years)
• long-term goals (5-10 years or even longer)
Long-term goals set the company's direction.
Short-term goals are the specific steps or actions that
will ultimately achieve the company's long-term goals.
Vision describes what a company wants to become
and mission is how the company will achieve its vision.

24.
2. Identify the resources
needed. Resources comprise
production capacity, human
resources, and financial resource

25.
3. Identify a goal that is related to
the tasks. The management must find out
how to achieve the goal.
For example, if they want to increase
sales, they can train their sales agent to
become more skilled in dealing with clients.
They can also make sales promotions as a
marketing strategy.

26.
4. Assign the task to an
accountable and responsible individual
or team and have a timeline. After
identifying the task to achieve the goal,
the company must identify who will be
accountable for the activity. There should
be a specific timeline for it.

27.
5. Establish an evaluation
system for monitoring and controlling.
The management must establish a process
that allows them to supervise the plan.
This can be done by comparing
the budgets and projecting financial
statements with the actual results.

28.
6. Determine contingency
plans. The management has
alternative plans to minimize the risk
or bad effect to the company.

29.
A contingency plan is an
alternative plan of an organization to
respond efficiently to a future event or
situation that may or may not happen.
Budgets and projected financial
statements are also considered in
contingency planning.

30.
ACTIVITY

31.
Directions: Match column A with
column B. Write your answers
on a separate sheet of paper.

32.
COLUMN A
____1. It is about setting the goals of the
organization and identifying ways on how to achieve
them.
____2. It is the process of deciding how an
organization can accomplish its financial goals and
objectives.
____3. It describes what a company wants to
become.
____4. It describes how the company will achieve its
goal.

33.
____5. It is a plan designed to take a
possible future event or circumstance into
account.
____6. These goals can be achieved in a
year.
____7. These goals can be achieved
between 1-3 years.
____8. These goals can be achieved in 5-10
years or even longer.

34.
COLUMN B
A. short-term goals B. vision
C. management planning D. midterm goals
E. Mission F. planning
G. long-term goals H. financial planning
I. contingency plan J. strategic plan