Planning of the finance is a good and obligatory practice for an individual as well as an organization. Finance planning helps us to make a budget and to plan our activities in concordance with it. It has to give priority for the future savings, both long term and short term. In addition to the allotment of income for various expenses, finance planning also gives importance to the investments which produce profits in the future. An analysis of the income and expenditure each year coupled with a prediction in the future year help establishments to make strategic business plans for the future.