In terms of financial planning, Canada is a lot like plenty of other countries. No matter where you are, financial planning is a process that aims for four main objectives:
Determining capital requirements
Determining capital structure
Framing financial policies
Ensures that the scarce financial resources are maximally utilized in the best possible manner
What is really financial planning?
Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.
A financial plan is a document containing a person's current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan may be created independently or with the help of a certified financial planner.
A financial plan documents an individual's long-term financial goals and creates a strategy for achieving them.
The plan should be comprehensive, but also highly individualized to reflect the individual's personal and family situation, risk tolerance, and future expectations.
The plan starts with a calculation of the person's current net worth and cash flow and ends with a strategy.
How financial planning works in Canada
Developing an financial plan can be done in many ways in Canada. You could embark on this endeavour alone, or pay for the professional help-of an expert. A quick search on Google and you should find plenty of apps and templates for a more DIY experience. Going this way doesn't mean putting yourself at risk, since you can always use such templates and still hire a financial security advisors to revise and review everything before it is considered legally binding. Your financial plan can include many documents. Since there is no"all-around" financial planning expert, you could be working with a handful of professionals including the followings:
Financial security advisors
The Fintech Apps
Financial planning checklist
To sum it all up, here is a quick checklist that will remind you of every step of the financial planning process:
Adequate funds have to be ensured.
Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.
Financial Planning ensures that the suppliers of funds are easily investing in companies which exercise financial planning.
Financial Planning helps in making growth and expansion programmes which helps in long-run survival of the company.
Financial Planning reduces uncertainties with regards to changing market trends which can be faced easily through enough funds.
Financial Planning helps in reducing the uncertainties which can be a hindrance to growth of the company. This helps in ensuring stability an d profitability in concern.