Importance of financial planning is as follows:
(a) It helps the company to prepare for the future.
(b) It helps in avoiding business shocks and surprises.
(c) It helps in co-ordinating various business functions.
(d) It helps in reducing waste, duplication of efforts, gaps in planning and confusion
(e) It links the present with the future.
(f) It provides a link between investment and financing decisions.
(g) It serves as a control technique.
