Strategic Role of Financial Management
- Financial management must provide the financial resources to allow the implementation of a business’ strategic plan.
- A strategic plan outlines goals, objectives and future direction of a business.
- Financial resources ensure the business continues to grow and is able to achieve its goals and objectives.
- Financial management deals with the analysis, interpretation and evaluation of all financial records of the business
- The range of activities involved in the strategic management of financial resources include:
- Setting policies and procedures regarding cash and credit controls
- Determining the mix of equity and debt finance raising
- Budgeting, including monitoring actual and planned performance
- Record keeping and analysis through the use of financial statements and ratios
- Implementing financial controls
- Taxation management
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.