Financial Planning Process

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Financial Planning Process Capital structure decisions are an issue that should be emphasized in terms of sustaining and improving the activities of companies.

Instead of leaving the events to their own flow and monitoring the short-term, financial strategies that aim at saving the day, they are focusing on long-term goals and in this direction, they are trying to predict the future from this day and to plan their activities accordingly. As it is known, in the financing, it is important to ensure that the funds needed for the operations of the enterprise are provided in optimum conditions with minimum cost in the most efficient and rational manner. In the most rational use of funds, the pre-planning of financial actions is too large to deny. Because olan first of all, since financial planning is an activity to predict the future from this day, it will determine how the activities will be formed in accordance with the facilities and targets of the enterprise, what amount of funds will be needed for these activities, it allows. Therefore, planning the financial activities in advance means that the sources of funding can be used in the most profitable manner. In addition, financial planning makes a significant contribution to the company’s efforts to focus on its objectives and to ensure that all business units achieve the same goal in a coordinated manner.



In this study, financial planning, which we believe to be of great importance for enterprises in general, and financial forecast are explained.

Planning: It is defined as the process of determining the principles of the future mode of action, or of conducting the works according to a project, involving the whole or any unit of the business, and taking the decisions before the work.
Increased mobility in the markets,
To have as much economic and rational results as possible in production,
Providing funds and making it difficult to maintain the liquidity position of the enterprise is one of the factors that make the planned movement inevitable.
Financial planning: The system includes a systematic estimation and calculation of funds flows into and out of the enterprise. Planning is the focal point of financial management, as the planned activities of a production unit emerge in a certain period of time


2.1 Points to consider when preparing a financial plan:

Financial Planning Process Long-term objectives and objectives of the entity,
The current financial structure of the entity,
Properties of manufactured products,
Marketability of produced products,
The bargaining power of the enterprise etc. intrinsic elements.
General economic situation,
Competition in the business,
Tax applications,
Credit sources,
Individual and corporate investor behavior,
Possible changes in demand,
Exogenous conditions such as the situation of sellers that the enterprise cannot interfere with.
2.2 Purpose of financial planning: Optimum liquidity. In other words, in order for the entity to fulfill its obligations and duties, it must consistently hold liquid assets under its possession, ie to maintain its liquidity status.


  • To provide the funds needed to carry out business activities.
  • To provide funding under optimal conditions to minimize financing costs.
  • To adapt the financial structure of the business to changing conditions.
  • To make the expected cash surpluses efficient in time, to seek financial remedies and to
  • maintain financial stability.
  • are the objectives of financial planning.

2.3 Benefits of financial planning

Future targets are converted into quantitative terms.
It provides the determination of the standards to be used in the evaluation and control of the activities.
Makes it possible to see the problems encountered in economic life beforehand.
It helps to provide coordination between various departments in the enterprise.
It will guide the understanding of business objectives and strategies and conduct activities.
Enables more efficient use of resources.
To ensure the desired benefits from planning;

Planning is not a goal but a tool,

The plans have the flexibility to adapt to changing conditions,
Not only managers but also practitioners are involved in the planning process,
It should not be forgotten that planning should not only focus on costs and short-term profitability, but also to create new jobs and to withdraw from unfavorable areas.

The function of financial planning

Financial planning cannot be considered as merely plans and budgets. By analyzing the deviations through the financial control process and taking the necessary corrective measures on time, it is important to ensure the expected benefit from the planning. For this reason, the main function of planning is to help to preserve the overall financial balance by ensuring temporal conformity between inputs and outputs. This basic function,

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