A forward-looking financial strategy is comprehensive and all-inclusive. By and large, such a comprehensive management involves obtaining the capital for the business and then how they are spent on the business’ numerous accomplishments which include recording statistical data to be examined to help assess a business’ financial health and up-to-date financial performance.
Theories and treatise on business and finance have highlighted the importance of finance in business and importance of financial education in the process of growth and development of the country. The significance of money and finance as an engine of economic growth and development has long been recognized in the economic and business literature. Financial resources are the important source of the wealth of nations. A country that doesn’t have enough resources and capacity and ability to develop the financial skills and required financial knowledge of its people and place them to operational use cannot move on the path of growth and development. It has long being recognized that apart from primary factors of production, financial capital serves as the main input to generate output/production. There is a positive and direct relationship between financial resource development and economic growth. Economic growth creates conditions for better finance which in turn offshoot economic growth and development.
In the present-day corporate world Financial Resource Development is to perform many interesting and therefore important functions. The twenty-first century is the era of digital and technological advancements and innovations and it will promote and encourage those people who respond to the language of money and finances in the first place and technology in the second place which depends on how rapidly and quickly we are trained and skilled in money, banking and finance, particularly international finance. In the contemporary digital age, we see that the graph of financial knowledge has increased like anything.
Successful countries are those countries who adopt sound and rational financial strategies and models which are the best guesses of the future (Rational expectations model) because such strategies are based on all available information. And such countries’ financial and banking knowledge is very high and work very hard to make themselves wealthy by educating their people and investing in the financial education of their people in one way or the other way. Advanced countries of the world are undoubtedly rich having very high financial knowledge. In order to survive and progress in this corporate/ financial world and enjoy a superior hand in the globalized society, the correct and suitable kind of financial knowledge is very important. The financial shocks, financial crunches, disturbances and crisis we see today is a consequence of how we have been able to manage the financial resources of the world in general and trading partners in particular.
Modern financial resources are becoming more and more multifaceted and therefore complex, and therefore, require the backup of an innovative and a forward-looking financial strategy taking into account not only past financial data but all available financial data. Financial knowledge and economic development both affect each other which means that financial knowledge affects economic development and economic development affects financial knowledge. And financial knowledge assists economic development and in turn economic development ensures the prolongation of financial knowledge.
It is high time is to invest in financial education so as to realize the importance of financial resources in economic development. Here, the role of human resource development is very important because Human Resource Development will ensure the proper management of financial resources which will act as the guidelines for the growth and development of the country.
A forward-looking financial strategy is a necessary tool to modernize, restructure and revolutionize financial outlooks of business units because such a strategy goes hand in hand with financial changes of the economy. In short, a forward-looking financial strategy is necessary for improving efficiency/ productivity levels of business houses, profits, and growth of a business unit.