Financial planning involves creating a financial blueprint for an organization's future operations to ensure sufficient funds are available when needed. It involves determining objectives, policies, and procedures related to finance. A financial plan estimates capital needs and composition. The objectives of financial planning are to ensure availability of funds, minimize costs, improve profitability, optimize fund use, and provide liquidity throughout the year. Financial planning helps with forecasting, coordination, reducing waste, linking present and future, and evaluating performance. Capitalization refers to the total value of all long-term securities and obligations available to a firm, including shares, debentures, reserves, and long-term debt.