Financial planning Essay Example | Topics and Well Written Essays - 250 words

Financial planning - Essay Example Planning requires cooperation from the different departments in a corporation. A key budget that can guide a company is the master budget. A master budget is a set of interrelated budgets that constitutes a plan of action for a specific period of time (Weygandt, Kieso, Kimmel, 2002). The statements of cash flow is a key report that provides insight into the cash activities of the firm during an accounting period. The three categories of this statement are operating, investing, and financing activities. Cash is the most liquid and important asset a company has. A lack of cash can put a company out of operation because without cash a company cannot pay its current liabilities. Cash flow is of vital importance to the health of a business (Businesscasestudies, 2015). Investment planning is important because choosing the right investments and projects allow corporations the ability to maximize shareholders wealth. Businesscasestudies.co.uk (2015). Controlling cash flow for business growth. Retrieved January 17, 2015 from