Financial management (including planning & control) is the entirety of activities, processes and ground rules that must ensure that an organization employs the available means so that the targets of an organization are reached. Good financial management does not limit itself to the short term, but works with planning on the long term. After all it must be known how an organization is doing financially, not only for next month but also for the following year and after. This means that future uncertainties and different options that he organization has to tackle these uncertainties, must receive a role in financial management. A good long-range budget shows in which ways strategic policy affects the costs and benefits as well as for the capital of an organization. The budget estimate and the translation thereof in budgets offer solutions to guard the effectiveness and efficiency of the use of means.
Most long-range budget estimates mostly revolve around extrapolation of acts from the past and not about a financial translation of a dynamic roadmap for the upcoming years. A roadmap can be developed with the Scenario Based Strategy method of De Ruijter Strategy on the basis of an exploration of trends and uncertainties, scenarios for the future and options for your own action.
Would you like to know more about how De Ruijter Strategy can be of service to your financial management? Contact us at +31 (0) 20 625 02 14, or email Jolanda van Heijningen: firstname.lastname@example.org