Sources of Financial Data for Strategic Decision Making

Finance for Strategic Managers

Sources of financial data
• Financial information is quite relevant to company so that it may be able to
take strategic business decisions in effective way.
• This contains various sources of financial data which help management to
assess the same and take enhanced decision for the betterment of
organisation.
• Among these, Income statement and balance sheet and cash flow statement
are categorised as main financial data from which company can easily
analyse performance and as such, management can implement well-
structured strategies in order to improve upon activities so that objectives
can be achieved in the best possible way.

Cont.
• Income statement
• It is quite useful source for management to take strategic
decision.
• Income statement provides expenditures incurred and income
earned for a particular period.
• This clarifies business in order to make well-structured
strategies so that more revenue may be garnered.
• Moreover, tasks should be achieved by initiating control over
expenses.
• Thus, management takes better business decisions.

Cont.
• Balance sheet
• It is another useful source of financial data as
it provides business clarity about how assets
and liabilities prevails at the end of accounting
period.
• Balance sheet is also known as statement of
financial position as it provides summary of
income and expenditures at the end of year.