Explain "strategic financial planning."

Strategic financial planning is indeed a long-term plan that aligns financial goals with the organization's mission and vision. This process involves a comprehensive consideration of how financial resources will be directed and allocated to achieve the long-term objectives of the organization.

The essence of strategic financial planning lies in its focus on the bigger picture, ensuring that financial decisions are not made in isolation but rather in congruence with overall organizational goals. This approach allows organizations to anticipate future financial needs, assess potential risks, and create a roadmap that guides investment and financing decisions in a manner that supports their strategic direction.

By establishing a clear link between financial strategies and the mission of the organization, strategic financial planning enables firms to prioritize initiatives, allocate resources effectively, and evaluate the financial implications of new opportunities or challenges. It is an essential practice for ensuring sustained growth and success over time.