Financial planning plan: Introduction. Financial planning and its essence

2. Timely updating. 
Financial control is the essence of resource management and, 
hence, the overall operational efficiency and profitability of a business. Timely 
updates of all available data are very important. In addition, updating all 
management practices and policies concerning the existing financial control 
methods is also equally important. 
3. Analyzing all possible operational scenarios. 
Before implementing a fixed 
financial control strategy in an organization, it is important to thoroughly evaluate 
all possible operational scenarios. Viewing the policies from the perspectives of 

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different operational scenarios – such as profitability, expenditures, safety, and scale 
of production or volume – can provide the necessary information. Also, it helps 
establish an effective financial control policy that covers all operational aspects of 
the organization. 
Importance of Financial Controls 
1. Cash flow maintenance 
Efficient financial control measures contribute significantly to the cash flow 
maintenance of an organization. When an effective control mechanism is in place, 
the overall cash inflows and outflows are monitored and planned, which results in 
efficient operations. 
2. Resource management 
The financial resources of an organization are at the very core of any 
organization’s operational efficiency. Financial resources make available all other 
resources needed for operating a business. Hence, financial resource management is 
crucial to manage all other resources. Effective financial control measures are hence 
crucial to ensure resource management in an organization. 
3. Operational efficiency. 
An effective financial control mechanism ensures 
overall operational efficiency in an organization.