Thanks to the above benefits, the computerized financial planning system strengthens the firms planning ability. Though, there is a potential disadvantage associated with it that may be overlooked. It is worth mentioning in this regard that the ease that computations can be performed with the help of Business finance software and forecasts generated may result in misdirected efforts. In simple terms, a large quantity of low-quality predictions may be churned out creating confusion and on the part of management. Moreover quality may be sacrificed to quantity. Thats why to guard against this danger, greater thought should be given to the scenarios evaluated and the quality of analysis when using business finance software.

Always remember that with electronic data processing, it is possible to handle large amounts of data and to make information available to a large number of people. Therefore, one can obtain, analyze and organize timely data quite inexpensively by using business finance software. But fact of the matter is it must never be forgotten that data is not necessarily information. In theory information must inform someone. Furthermore with the help of Business finance software, you can use computer graphics. In addition it can inform visually, displaying important company information. Moreover managers can now quickly display a colored map showing their competitive picture instead of computer printouts for information.

In simple terms, financial planning is the application of planning to various aspects of finance function. Theoretically speaking, business finance involves the formulation of a financial plan that states the quantum of finance required, the pattern of financing and the policies to pursue for the administration of the financial plan. In an ideal scenario a business enterprise requires short-term and long-term capital. It is worth pointing that the total capital required by a concern is called capitalization. On the other hand the short-term capital or the working capital is the capital required to meet the day-to-day obligations or the operating expenses. Always remember that the long-term capital is required to acquire the fixed assets. Normally, on a conservative ground, a portion of the working capital is also met out of long-term capital.

If experts are to be believed, the capital required may be collected from different sources. Furthermore a substantial share is raised from internally generated funds. On the other hand the remaining part is raised from outside sources such as issue of shares and debentures and loans. In theory, this pattern of financing is known as capital structure. According to experts, it is designed in such a way to obtain the required amount needed at the lowest possible cost. Fact remained that once the required amount is raised, then the funds are allocated in the best possible way to obtain the maximum benefits.

There is no denying that implementing proper control systems can ensure the efficient use of the funds. Lastly, all-important matters are reported to the top management to take proper actions at the right time. Furthermore the financial reports are analyzed to evaluate the performance of the firm. According to Cohen and Robin, it is worth pointing that business finance aims at determining the financial resources required meeting the companys operating program. In addition business finance also forecasts the extent to which these requirements are met by internal generation of funds and the extent that they will be met from external resources. Moreover business finance helps in establishing and maintaining a system of financial control governing the allocation and use of funds.

If experts are to be believed, financial planning software is specially designed to prepare a detailed financial plan for the individuals and business. Moreover it helps in personal budgeting, investment management, debt management, managing medical expenses, retirement planning and so on.

In theory Financial-planning software also helps an individual in tracing his finances. Fact of the matter is the software makes it faster and easier to pay bills online. Furthermore it helps you to plan payments in advance and make payments as and when they are due. Moreover you can even prepare a plan for payments for a whole year in advance. In case if you pre-plan your payments, the chances are that you never miss or forget any payment.

Theoretically speaking financial planning software also provides immediate information about our account balances and credit limits. Thats why, you always have a clear idea about our financial position, that too in a very much precise and up-to-date manner.

In addition, Financial-planning software forms an integral part in corporate planning also. Furthermore it helps in discovering new business ideas, making estimates of future cash inflows and outflows, and taking appropriate steps for the effective management of funds. Theoretically speaking it ensures stability of business operations by reducing uncertainty. There is no denying that Financial planning software helps to minimize cost of financing through the judicious application of scarce financial resources. Furthermore it ensures liquidity of the business throughout the year by achieving a balance between the inflow and outflow of funds. In an ideal scenario the software evaluates the profitability of different business projects and helps in selecting the most feasible one. In short, financial planning software plays a pivotal part in improving the profit earning capacity of the business.