Assignment Financial Control

Added on - 20 Sep 2019

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Importance of and practice of financial control in organisationsFinancial controlFinancial control allows a company to evaluate objectively and systematically the variationswhich had taken place on earlier established strategies and on the old lines (Otley, D. andEmmanuel, K.M.C., 2013).This control helps in getting various insights and arguments which helps in taking majordecisions and hence would guarantee in achieving the corporate objectives of the company.The value of financial control has potential of reaching to different levels within thestructure of the business (Clark, I., 2013)which is both, financial as well as organisational:The Strategic levelPolicies of investmentPolicies of business and its operationsThe operational perspective of the companyThe strategic levelIt refers to the evaluating process of the concurrence related to the financial plan as well asthe strategic plan of any company.It is the one of the best way in order to detect the different variations in the budget of thebusiness and thus taking suitable actions for compensating, balancing and amending theissue.Policies of investmentInvestments are important for any type of business in the world. These investments areessential for developing and growing the business to another level and also for its viability.Therefore this has become important as it:oHelps in evaluating the policies include investment decisionsoHelps in differentiating between various types of investments be it immediate, shortterm or mid to long term.Policies of business and its operationsThese policies of business influence the income generation capacity of the business and alsothe act of cost reduction. Financial control therefore gives information in matters of:oFixation of pricesoConsistency of the different strategies of marketingThe operational perspective of the companyThrough this perspective, a methodology of financial control being optimal is possible to agreat extent and hence control the accounts.Therefore it is the most important perspective.
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