Strategic financial planning is the process of determining how a business manages itself financially to ensure it achieves its goals and objectives for both the short-term and long-term. Sound financial planning considers every aspect of a business' operations and the interwoven impact each has on the overall financial position of the company.
Strategic financial planning involves a 360º, whole picture evaluation of the company operations to create a comprehensive financial plan:
- Budget development, cost systems and management reports
- Resources required to achieve objectives (cost, type, amount)
- Working capital management (inventory, receivables, payables and cash)
- Employee structure, payroll and benefits
- Risk identification and management
- Succession planning