Financial plan is a summary of 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. Financial plan can be used as a benchmark to measure the progress company is making and update plan as company’s goals and time frame change. Short term financial planning involves less uncertainty than long term financial planning because market trends are more predictable in the short term. Moreover, short term plans can be more easily amended.