Which of the following is NOT an importance of financial planning?

It tries to delink the present with the future

The correct answer is option 4- It tries to delink the present with the future.

It tries to delink the present with the future. It is NOT an importance of financial planning. As financial planning link the present with the future.

Financial planning links the present with the future.
Financial planning is essentially preparation of a financial blueprint of an organisation’s future operations.The objective of financial planning is to ensure that enough funds are available at right time. Importance of financial planning is as under:

1. It helps in forecasting what may happen in future under different business situations.

2. It helps in avoiding business shocks and surprises and helps the company in preparing for the future.

3. If helps in co-ordinating various business functions, e.g., sales and production functions, by providing clear policies and procedures.

4. Detailed plans of action prepared under financial planning reduce waste, duplication of efforts, and gaps in planning.

5. It tries to link (not delink) the present with the future.

6. It provides a link between investment and financing decisions on a continuous basis.

7. By spelling out detailed objectives for various business segments, it makes the evaluation of actual performance easier.