Why is accounting important to the four phases of strategic management?
Harvard University Business Review defines the four phases of strategic planning as:
- Basic Financial Planning
- Forecast-Based Planning (analysis leading to predictions)
- Externally Oriented Planning
- Strategic Management
These areas all rely upon accounting (accounting: the systematic comprehensive recording and summarizing of business and financial transactions, with verification and analysis of results) to accomplish their end objectives of planning, forecasting, predicting, and managing.