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Question about Forecasting and Budgeting

1. Define the difference between strategic planning and financial planning. Describe how the two are related?

2. Define the difference between forecasting and budgeting. What is the difference between an operating budget and a cash budget?

3. What is meant by the time value of money? What is the Time Value of Money's role in finance?

Please include any references.

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1. Define the difference between strategic planning and financial planning. Describe how the two are related?

The strategy planning is the organization's process of defining it strategy, or direction and making allocations of resources so as to follow the strategy to achieve the goals of the organization. On the other hand financial planning refers to a plan for spending, earning, and saving future income. Usually, the financial planning refers to the allocation of future earnings to future expenses. The financial planning process also includes the decision making on different investments that are to be made in future. So, strategic planning defines the strategy that will be adopted by the organization for achieving its goals. Fur, strategic planning to be successful, resource allocation is very important. This includes the resources of manpower and financial resources. If financial resources are not allocated for different steps or different tasks, the strategic planning process remains incomplete.

This is how strategic planning and financial planning are related. Financial ...

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