Financial planning is a very important process because it enhances the management of fiscal processes for individuals and organizations. The planning assists an individual in the conversion of goals into working tactics through the provision of a conceptual framework to assist in the attainment of these goals (Subramaniam, 2012). Some of the major areas of concern of these strategies is the acquisition of the balance between the financial inputs and outputs. The planning is very important because it assist in the identification and mitigation of the uncertainties that are likely to threaten the success of a project. A major aspect of financial planning is the assessment and evaluation of information needs for various decision-makers in the corporate industry.
There are various decision makers in an organization, and each has various needs regarding the information they require to make decisions. The decision makers include the employees, customers, lenders investors, government and suppliers (Smith, 2013). The suppliers are the individuals that are concerned with manufacturing and selling of services, goods and equipment to the consumers. In order to have sufficient information regarding trade and credit for their clients, strategic assessment of all information associated with these individuals is necessary. Suppliers need to ascertain whether their clients have a stable financial background that can enable them pay for the goods for services they offer.
Lack of this information can lead to financial setbacks that are unhealthy for the company. Consequently, this information can assist the suppliers to determine whether they can do business with these individuals or not. In making these decisions, the suppliers also need to take the logistics associated with the delivery of the goods and services to their clients in order to eliminate any inconvenience associated with the business process.
Customers are also important players in the business processes. The customers are the ultimate consumers of the products, and they may need a lot of information about the products and the companies before making their final decisions. The customers have various needs, and expectations and the cultural, and operational orientations of the organizations may not be in a position to provide goods that are tailored to their needs. This is because the suppliers also have a diverse network of clients whose needs differ significantly (Smith, 2013). Therefore, the customers need information about the products produced by a company in order to determine whether the product can assist in meeting the required needs and expectations. The customers must also acquire information about the integrity of the company to assist in determining whether they can deliver the exact goods or services that are ordered. Some of the aspects that the customers need to know is the financial stability of the company and its ability to produce and deliver plenty of goods and services when need arises. The ability of both the client and supplier to create and sustain long-term business ties can also be important in the business.
Lenders and investors are also very important in the business industry because they assist in enhancing the corporate transactions through their heavy financial abilities (Smith, 2013). Lenders are associated with loaning money to companies, and the money is refundable with some interest within a specified period. On the other hand, investors capitalize their money in a company as part of the shareholders. Both lenders and investors need financial information and the performance of a company before committing their financial resources. Some of the aspects that are taken into consideration after the extraction of information is the ability of the company to maintain a healthy financial position through the assessment of the history. The information acquired from the company can be used to determine whether an organization is loaded with liabilities, and this can be very crucial towards determining whether it is viable to invest or lend money to the organization.