What is the difference?
When looking to receive the right professional advice, many business owners and key managers are often confused with the following terminologies used:
- Financial Management Planning advice; and
- “Strategic” Financial Management Planning
This Blog is prepared to help you quickly and easily understand that there is a difference.
Listed here is a brief summary of information that should assist you in understanding the difference.
Financial Management Planning Advice
Financial management planning will involve your professional advisor looking back in time to take a historical view of your business’s or organisation’s financial activities (i.e. profit and loss, balance sheet, and cash flow). The financial management process means planning, organising, directing, and controlling the financial activities of your business or organisation to ensure:
- The regular and adequate supply of funds are available to your business or organisation;
- That your business or organisation is providing adequate returns to you (the business owner) and/or the shareholders;
- That the funds are being utilised in the maximum possible way and at the least cost to your business or organisation; and
- That a sound and fair composition of capital is evident.
“Strategic Financial Management” Planning Advice
“Strategic” financial management planning, will involve your professional advisor looking ahead to forecast, evaluate and provide you with a series of “specific” plans relating to key areas of your business or organisation, such as:
- Setting a clear vision and mission for your business or organisation;
- Setting out clear strategic objectives for your business or organisation;
- Developing a Long-Term Financial Plan for your business or organisation;
- Developing an Annual Business Plan that will focus on your annual business objectives and your strategies for the financial year ahead;
- Developing a Budget that focuses on your operational activities and your short-term activities;
- Enabling the effective management and usage of your business’s or organisation’s finances.
Frequently Asked Questions (FAQs)
Many business owners and key managers have frequently asked us to provide them with some useful information when they are defining and setting out their business’s or organisation’s objectives. Here is of suitable criteria you can consider when evaluating your objectives:
- Is your objective non-measurable, continuous and ongoing?
- Does your objective help you to sustain your business’s or organisation’s competitive advantage?
- Does your objective enable you to convert mission/vision statement into an actionable objective?
- Can you assign this key area of activity to a responsible key manager?
Seek Expert and Professional Advice
If have any further questions or if you require any further advice and assistance, you should take advantage of the professional advice and assistance from our “principal”, who is an expert business and management consultant, as well as being a professionally qualified public accountant. In addition to holding an Economics degree, he has the designation and degree of the internationally recognised Institute of Public Accountants (IPA) and the Institute of Management Consultants (IMC).
Our expert in business management consulting is willing and able to:
- Offer sound practical and professional advice that really works (not just complex theories); and
- Help you in bouncing ideas off someone who is experienced in evaluating the different issues many business owners face when starting up and managing a business.
Contact Us Today
If you require more information on Financial Management Planning or Strategic Financial Management Planning call us today on 0424 190 908 or simply click here to send your question and we will contact you without delay. You can read more about our other services such as Business Consulting, Small Business Consulting & Business Strategy Consulting .