What is the difference between Financial Planning and Financial Management
Financial Planning And Financial Management Are two different terms. People think these are similar, although the objective of both are same but still there is a difference between them. We have find out the difference between Financial Planning and Financial Management after talking over with the Best Financial Planners in Delhi.
Financial Planning– Financial Planning Is the process of planning your finance for Future. Financial Planning is the task of managing that how a business or individual will afford it’s finance, complete its future goals and Objectives. It is the process of determining that how an organization will achieve it’s financial aims. For planning your finance it is not necessary that you should have finance or money at the time of planning.
Objectives of Financial Planning-
Financial planning is done to achieve the following objectives-
- Financial planning helps in ensuring the requirements of funds whenever they needed.
- Financial Planning helps in controlling the wastage of funds in unnecessary resources.
- Financial planning reduces the risk of uncertainties in changing market trends.
- Financial planning helps in obtaining the right financial Schemes for those resources which will be beneficial in Long-term.
- Financial planning helps in Delivering the funds at the right time at the right place.
Financial Management– Finance And Money is the Vital need of any business and Organization. The source of finance is always limited. So therefore it is very important to manage finance in a right manner. Financial management is the process of planning, organizing, controlling and managing financial resources, with the aim of achieving all financial goals of organization.
Objectives of Financial Management-
The financial management is generally related with procurement, allocation and control of financial resource. The main objectives are-
- Financial management helps in ensuring the regular supply of funds to the related concern.
- Financial management ensures the optimum utilization of funds.
- It helps in investing in safe areas, so that the great R.O.I. can be achieved.
- Financial management helps in planning a good Financial Structure. There should be maintained a fair balance between the debt and Equity Capital.
- Proper finance management helps in Maximization of Wealth and profits.
Difference between Financial Planning and Financial Management- Although Financial Planning and financial Management are very similar. But still there is a difference. According to Financial Business Planner in Delhi The main Difference between Financial Planning and Financial Management is that you can plan your finance and financial goals for future, whether you have not money or finance at that time, but for financial management you should already have wealth and money to manage.
VSRK Wealth Creator is one of the Best Financial Distribution Company in Delhi. For effectively planning your funds and Finance you can also consult mutual fund services.