What are some of the pillars of financial planning? The first is the plan. Although this might sound overly simple, it is surprising how many overlook its necessity and handle financial management by the seat of the pants method. In order to have a successful plan, there must be a clearly defined objective. The objective represents the vision of where the organization wishes to be in a certain period of time. It is said that is represents a vision rather than a goal. To say, the goal is to make a profit is too simple.
Control is most often seen as a function of financial management, but it is a elemental part of the planning process as well. The systems that will allow control must be clearly defined in the implementation part of the plan. This includes the assignment of responsibilities and the delegation of power to designated managers. Control is tied to accounting and it must be strictly enforced. Business models have legal obligations to maintain accurate control and accounting procedures not merely as part of their responsibilities when they are a publicly held company, but for taxation purposes as well.