The objectives of Financial Planning are:
(i) To ensure availability of adequate funds at the right time : This includes a proper estimation of fund required for different purposes such as for the purchase of long-term assets or to meet day-to-day expense of business. Apart from this, it is essential to estimate the time at which the funds are to be made available. Based on these facts, funds could be raised from shortterm and long-term sources.
(ii) To see that the firm does not raise resources unnecessarily : Excess funding is almost as bad as inadequate funding. So, the financial manager must see to it that the company does not raise more capital than the requirement of the business. In case there is surplus cash or liquidity, the excess funds should be utilized judiciously.
