What is Strategic Finance ?
In addition to external .Consequently, organizations tactical include long-term planning, organizational development, treasury management and value management. Forecasting and financial planning are part of finance. Organization should develop. A finance tool assess situations that are financial and must help in developing finance models. These scenarios can suggest capital construction management and debt. Strategic finance tools should be linked to databases in addition to business performance management tools. A finance tool must offer a finance solution that can be used perform analysis, to set targets and provide data to execute decision. Organization requires a flexible and robust finance tool to examine evolving company and financial market.
The financial instrument should be capable of doing what-if situation modeling. It should permit development of finance models, which may be used achieve and to carry our impact evaluation based on variables that are dynamic. Currently, majority of the finance modelling is done through spreadsheets. These spreadsheets and a few facets of finance modelling lack information integrity, are difficult to handle and do not integrate like treasury and planning. As allowing to gain comprehension of tactical situations and develop business intelligence strategic finance module aids the business from the sensitivity analysis. Since the tactical finance tool is integrated with some other business modules all possible disconnections between tactical targets, and operational plans are analyzed.
Finance modelling provides insight into impact of tactical decisions on the company fund, cash flow, balance sheet and shareholder value. Strategic fund module provides the bridge between fund modelling and financial analysis. Its provides flexibility in creating finance models and measure impact on fiscal statements. Strategic fund modules have an in built fund model that saves time from designing and developing spread sheet based models. Finance modelling tools users needn't be trained from writing complex logic statements. The fund tool provides users flexibility of adding as many complexities as required. The fund tool provides users to invest more time in accomplishing evaluation and developing alternative strategies rather spending time in validating information. Any tactical fund decision has a direct effect on cash flow of the company. In turn cash flow impacts the balance sheet, hence fiscal performance inside the company. The strategic finance tool joins fund decision making process to working capital management to capital construction to taxation.