Learning Competency :

The learners shall be able to identify the steps in the

financial planning process. (ABM_BF12-IIIc-d-10)

Specific Learning Outcomes :

• Explain the importance of planning.
• Differentiate between strategic planning and tactical planning.
• Enumerate and apply the steps in planning.
Who Am I Five (5) years from now???
 Is your “Long - Term Goal”
*Still on the process of PLANNING
Planning is an important aspect of the firm’s operations
because it provides road maps for guiding, coordinating,
and controlling the firm’s actions to achieve its objectives
(Gitman & Zutter, 2012).
- Management planning is about setting the goals of the
organization and identifying ways on how to achieve
them (Borja& Cayanan, 2015).
How to attain the Goal?
 How to attain the Goal?

*must be supported by Short-Term goal (Action)

Phases of Financial Planning
1. Long-Term plan
2. Short-Term plan
TYPES OF PLANNING
• Long-term financial plans
- These are a set of goals that lay out the overall direction of the
company.
- A long-term financial plan is an integrated strategy that takes into
account various departments such as sales, production, marketing,
and operations for the purpose of guiding these departments
towards strategic goals.
- Those long-term plans consider proposed outlays for fixed assets,
research and development activities, marketing and product
development actions, capital structure, and major sources of financing.
- Also included would be termination of existing projects, product lines,
or lines of business; repayment or retirement of outstanding debts; and
any planned acquisitions(Gitman & Zutter, 2012).
• Short-term financial plans
- Specify short-term financial actions and the anticipated
impact of those actions. Part of short term financial plans
include setting the sales forecast and other forms of operating
and financial data. This would then translate into operating
budgets, the cash budget, and pro forma financial statements
(Gitman & Zutter, 2012).
Steps in Planning