After the company starts, the finance manager does the
financial planning
The types of financial plans are depicted and briefly
explained below.
types of financial plans
There are three types of financial plans:-,
Short-term
financial plan is prepared for maximum one year. This plan looks after the working
capital needs of the company.
Medium-term
financial plan is prepared for a period of one to five years. This plan looks
after replacement and maintenance of assets, research and development, etc.
Long-term
financial plan is prepared for a period of more than five years. It looks after
the long-term financial objectives of the company, its capital structure,
expansion activities, etc.
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