Financial planning and forecasting is essential for large companies to manage financial decisions and to
report accurate results internally and externally. Financial planning and forecasting is conducted by finance
executives often led by the CFO (chief financial officer). The financial support of a corporation understands
reporting requirements and establishes plans and policies to guide financial decisions regarding dividends,
financing, investment and capital management.
Large companies have a need to establish guidelines for financial planning and policy. The guidelines are
needed because corporations are typically managing large amounts of money and have obligations to
employees and stockholders to carefully manage the money that is generated within the company. These
obligations require corporations to employ internal and external financial experts to develop and implement
financial decisions such as financing, investment, dividends and maximizing the use of funds created.
Experts have postulated a relationship between financial policy and the ability to create wealth for
stockholders. There is a verified relationship between certain types of financial decisions such as research
and development, debt financing, investment and dividends. Financial managers are central to corporate
governance, and in addition to expertise in financial areas, these individuals must also possess a high-level
sense of ethics to ensure that the decisions they make will be honest and straightforward. Financial planning
is necessary because without it companies may lose money and jeopardize the survival of the organization
The study has been conducted with the purpose of getting in-depth knowledge about the Financial Planning
and forecasting management procedure in companies for the above said purposes.
Keywords : Scope and Objectives of financial management, Time value of money, Financial analyses and planning, Financial decisions, Investment decisions, Management of working capital