The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. By planning your finances, you manage your money such that you reach your life goals. The purpose of financial planning is to reach your financial goals. Even if you end up outsourcing your bookkeeping and regular financial analysis to an accounting firm, you—the business owner—should be able to read and understand these documents and make decisions based on what you learn from them. Also, it's important to determine how your financial strategy fits into your business plan and what changes are needed to ensure it stays relevant. A complicated financial structure creates complications and confusion. the main purpose of planing is in two wards better than more is performance evaluation where iam going to go what i want to be its motivation tool communication tool and goal tool What is the purpose of financial planning? Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. 8745 W. Higgins Road #110. You can stop and think about your family's financial goals, such as saving for retirement, a house, or a child's education. 3 key elements to the process of financial management. Address: 8745 W. Higgins Road #110. As you move toward your financial goals you will encounter a degree of uncertainty as you take ‘measured risk’. There is no single definition of Financial Planning but important is – the process should help you achieve your goals & bring peace of mind. To ensure availability of funds whenever these are required: ADVERTISEMENTS: The main objective of financial planning is that sufficient fund should be available in the company for different purposes such as for purchase of long term assets, to meet day-to- day expenses, etc. Long-term financial planning works best as part of an overall strategic plan. Resources include a cash emergency fund, the right amounts of disability and life insurance, and medical and long-term-care insurance. He enjoys helping people do more things they enjoy. Chicago, IL 60631. Purpose Financial Planning. The main purpose of financial planning should be to utilise financial resources in the best possible manner.