What is the primary purpose of strategic financial planning?

The primary purpose of strategic financial planning is to align financial decisions with organizational goals. This process involves assessing the organization’s long-term objectives and identifying the necessary financial resources to support these goals. By aligning financial strategies with the broader mission of the organization, strategic financial planning ensures that resources are allocated efficiently, risks are managed effectively, and financial performance is optimized over time.

This alignment helps organizations to not only respond to immediate financial challenges but also to strategically position themselves for sustainable growth and success in the future. It emphasizes the importance of integrating financial management with overall business strategy, which allows for better decision-making and prioritization of initiatives that drive the organization's mission forward.