Strategic Financial Planning
Strategic Financial Management
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and behavior have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.
The Financial Planning activity involves the following tasks;- * Assess the business environment * Confirm the business vision and objectives * Identify the types of resources needed to achieve these objectives * Quantify the amount of resource (labor, equipment, materials) * Calculate the total cost of each type of resource * Summarize the costs to create a budget * Identify any risks and issues with the budget set
Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set.
The role of financial planning includes three categories: 1. Strategic role of financial management: 2. Objectives of financial management: 3. The planning cycle:
Strategic financial management refers to study of finance with a long term view considering the strategic goals of the enterprise.
At the most fundamental level, financial management is concerned with managing an organization 's assets, liabilities, revenues, profitability and cash flow. Strategic financial management goes a step further in ensuring that the organization remains on track to attain its short-term and long-term goals, while maximizing value for its shareholders.
Strategic financial management also means that short-term goals may occasionally need to be sacrificed to meet longer-term objectives. A
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and behavior have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.
The Financial Planning activity involves the following tasks;- * Assess the business environment * Confirm the business vision and objectives * Identify the types of resources needed to achieve these objectives * Quantify the amount of resource (labor, equipment, materials) * Calculate the total cost of each type of resource * Summarize the costs to create a budget * Identify any risks and issues with the budget set
Performing Financial Planning is critical to the success of any organization. It provides the Business Plan with rigor, by confirming that the objectives set are achievable from a financial point of view. It also helps the CEO to set financial targets for the organization, and reward staff for meeting objectives within the budget set.
The role of financial planning includes three categories: 1. Strategic role of financial management: 2. Objectives of financial management: 3. The planning cycle:
Strategic financial management refers to study of finance with a long term view considering the strategic goals of the enterprise.
At the most fundamental level, financial management is concerned with managing an organization 's assets, liabilities, revenues, profitability and cash flow. Strategic financial management goes a step further in ensuring that the organization remains on track to attain its short-term and long-term goals, while maximizing value for its shareholders.
Strategic financial management also means that short-term goals may occasionally need to be sacrificed to meet longer-term objectives. A