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Financial planning is an important tool of for-profit organisations such as corporations and partnerships but is not important for not-for-profit enterprises such charitable organisations or governments.
Good financial planning considers past, present, and pro forma income statements.
Balance sheets are critical elements of the financial planning process and help demonstrate expected sources and uses of funds.
Forecasting in the form of expected sales, cost of funds, and micro- and macroeconomic conditions are essential elements of financial planning.