What is a financial strategy?

The financial strategy is a part of the strategic management of a certain company that is in charge of controlling and planning everything related to the resources used to finance operations to achieve the previously set objectives.

The main objective of the financial strategy is to be able to plan and foresee the way in which the monetary resources of the company will be used in an efficient and economic way, in a way that optimizes the profit.

In order to determine the company's strategy, it will be subject to a superior strategy, which will in turn be conditioned by business objectives.

The financial strategy of the company contains everything that has to do with the economic-financial aspects of the company related to investment and finance. In general, it is usually divided into two sub-strategies:

  • An investment strategy: in which the conditions that must be imposed in order to make investments are established
  • A financing strategy: in which the structure of the sources of financial resources that the company has is detailed.

Finally, we are going to comment on what are the benefits of including a financial strategy in our company (or, at least, taking it into account):

  • Helps to carry out administrative processes of a financial and economic nature
  • Facilitates making decisions and achieving the objectives and goals that have been set in the organization
  • Efficiently manage assets
  • It helps us to have control of the financial statements
  • It helps us to invest and finance ourselves efficiently and easily: we can know where to invest or what to do in future investments
  • Control the monetary flows that the company has to meet its commitments and debts
  • Compensates shareholders if they have had an ostensible risk

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