Financial planning for businesses refers to the process of establishing how businesses can be able to meet their strategic objectives and goals. A business’s financial plan is therefore created after the objectives and vision of the business have been set. Financial plan for businesses therefore describes aspects such as resources, activities, materials and equipment that are required to fulfil these objectives. It also describes the time frame that will be required for the fulfillment of the set objectives.

Financial planning for businesses involves tasks such as assessing the business environment, confirming business goals and vision, establishing the type, quantity and cost of the resources needed to achieve the objectives, creating a cost budget and identifying the risk factors in the budget .

Through financial planning for businesses, the CEO is able to set achievable financial targets for the business. Financial planning for businesses is therefore critical for the success of any business.