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The task and importance of financial planning

Citation: Lewis, C. S. - From the book Alice's Adventures in Wonderland

"Could you tell me where to go next?"
"That largely depends on where you want to go," said the Cat.
"Oh, it doesn't matter where…"
"Then it doesn't matter where you go," said the Cat.
"...provided I get somewhere," Aliz added by way of explanation.
"Oh, if you go long enough," said the Cat, "you'll get somewhere."

Shortly, we can say that if I don't have a direction, then it is not necessary to plan the direction, because if we are in motion, i.e. if we operate our economic processes, we will get somewhere anyway.

Planning is extremely important in today's world full of changing circumstances, so the importance of planning goals is becoming more and more clear. A company can react almost automatically to a part of the external economic events -which is not as significant as we think. At the same time, there is real time economic forecasting, when we consciously control our economic processes based on the goals. The SMART goal describes in detail what the structure of the goals set for our management should be.

• S = SPECIFIC: a precise description of the goal, what I want to achieve

• M = MEASURABLE: the progress should be measurable

• A =ATTAINABLE: select an attainable goal.

• R = REALISTIC: the goal should be realistic and feasible

• T = TIMELY: pairing of time determination for the destinations and the final destination

With these factors, the controlling activity can increase the efficiency and effectiveness of a company's planning, implementation and control processes.