Essay: Financial and Strategic Planning

The first concept is financial and Strategic planning. Planning is very important for any business to prosper.A financial plan of action usually involves projected expenditures. It relates this and the organization’s potential to generate the income that will take up these expenditures (Leon, 2010). Even though a financial plan might appear to be very similar to a budget, the two are different.

A financial plan is a dynamic document. Usually it changes very frequently according to the position of the business. The most important function it has is to determine if the organization’s position. It looks at whether there are enough resources in the organization capable of meeting the objectives laid down in the strategic plan.

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