Financial planning is a continuous process of directing and allocating financial resources to meet strategic goals and objectives



Business strategy is the vision of where the organization wants to be in three to five years’ time.
This will include….
Setting overall objectives so that the organization can determine what it hopes to achieve.
The business strategy also identifies courses of action. (This involves analyzing the environment in which an organization operates and the resources that it possesses using the SWOT analysis – an assessment of the business strengths, weaknesses, opportunities, and threats)





Whereas organizations plan for the long term using a strategic plan, they plan for the short-term using a business plan – what the organization must do now in order to achieve the strategic plan. In order to put into practice the business plan, the organization must consider appropriate planning procedures to work out what to do when, and the necessary controls (including budgeting) to ensure that anticipated results are actually achieved.


Budgetingis the tactical implementation of the business plan

It is incorporated in both the business planning and control processes.

Senior management chooses the strategic options that will have the greatest potential for achieving the organization’s objectives and will create long-term plans to implement those strategies.