Why is accounting important to the four phases of strategic management?

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Karyth Cara eNotes educator| Certified Educator

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.