Question

What is first step of the financial planning process

Answer 1

Answer:

Establishing and defining the client-planner relationship is the first step in the financial planning process.

Explanation:

Financial planning is a technique that determines how a business or an organization plans to achieve its goal and objectives. This plan enables the necessary activities, resources, and materials used to achieve the objectives of a business.

The financial planning process typically involves 6 major steps to clear the organization objectives.

• First step is used to determine the financial status of an    organization based upon incomes, savings and profits earned.
• The second step defines the needs and wants of an individual in framing his goal.
• The third step is used to develop alternate methods in solving problems.
• The fourth step evaluates the alternate methods and it suggest the best alternative to be followed.
• The fifth step suggest the individual to take necessary action to achieve their goals.
• The sixth step implements the method of revising and rescheduling the actions as per the plan to clear the objectives.