The process of financial planning includes the following financial analysis and aspects:

• Cash Flows: The building block of financial planning is projected cash flows for future given the activity level of today and the forecasts of future. The cash flows convey the liquidity performance, flexibility and risk concepts to the financial planning as supported by the accounting data and financial reports,

• Departmental analysis: For large companies and conglomerates, the targets produced by financial planning for each individual department generated by taking into account its own investment finance and cash flow requirements serves as benchmarks of success.

• Scenario Analysis:Theflexibilityoffinancial planning by the use of the capabilities of information technology enables to realize scenario analysis to evaluate the effects of the possible financial and environmental changes on corporate activities in thefuture.

• Short and Long-term Time Frame: The financial plans can be prepared for short (less than 1 year) and long t(more than 1 year term. They can also be prepared as monthly, quarterly and semiannually, each of which are used for control purposes. In the short-term, the basic motivation is to determine the funding needs or surplus and the method to secure or invest the relevant amounts. In thelong run financial planning is used as a strategic tool inordertomaximize the return under different risk estimations.