Management of financial planning

A good financial planning determines how must be invested the resources that are usually scarce. Also, have a strategic plan has become solid essential to gain access to international funds available requirement.

financial planning

The importance of strategic financial plan is that it is limited to analyze the organization, including its strengths and weaknesses, in the medium term. Proceeds from this analysis, managers are able to determine the mission and objectives of the organization, as well as the appropriate actions to achieve them.

Regardless whatever the general strategy of the company, from the functional point of view, financial management has the need to include a set of key areas arising from the strategic analysis.

This analysis represents a process that requires a deep and shredded the goals and objectives of the company study, a clear analysis of the external and internal environment, as well as also, rating the intangible assets of the organization. In the first analysis, the policy seeks to minimize the negative effects of environmental forces and maximize their positive impacts. What is meant by this is, understand their actual and potential impact on the organization.

Also, the internal analysis, tend to identify the strengths and weaknesses of the organization on its jurisdiction and from them, assess their ability to capitalize on opportunities and successfully overcome external threats.

Derived from this, there is a need for a comprehensive system of indicators to help management, measure and evaluate the performance of the organization, which usually include a comparison of the profitability ratios, with similar organizations in risk level and the way how to allocate their resources.

Even so, it is necessary and important for the management of financial planning, to assess the diagnostic results, not only focuses on the use of reason that seeks to know the trends and status of the organization in the areas of liquidity, indebtedness, profitability and mobilization of production factors, or what is the same, in traditional financial indicators but also use and become familiar with the use of methods of analysis for determining the level of creation or destruction of financial value, variable that pursues go beyond the profitability accounting.

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