Strategic financial management is a management approach that focuses on managing a company’s finances with the intention of achieving its long-term goals and objectives and maximizing shareholder value over time . It is about creating profits for the business over the long run and maximizing return on investment for stakeholders . Strategic financial management involves creating a financial plan that focuses on long-term gain and setting up financial controls to ensure an acceptable return on investment . It also involves understanding and properly controlling, allocating, and obtaining a company’s assets and liabilities, including monitoring operational financing items like expenditures, revenues, accounts receivable and payable, cash flow, and profitability .
trategic financial management is different from tactical management, which looks to seize near-term opportunities . While tactical management decisions relate to short-term positioning, strategic financial management practices are focused on long-term success . Strategic financial planning varies by company, industry, and sector .