Monday, December 10, 2012

Types of Financial Plans



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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