The process of determining a company's
financial needs or goals for the future and how to achieve them. Corporate financial planning involves deciding what
investments and
activities would be most appropriate under both the company's individual and broader
economic circumstances. All things being equal,
short-term financial planning involves less uncertainty than
long-term financial planning because, generally speaking,
market trends are more easily predictable in the short term. Likewise, short-term financial plans are more easily amendable in case something goes wrong.