Post by account_disabled on Mar 6, 2024 6:41:26 GMT
Financial control or financial management has become an essential part of any company's finances. Without going any further, more than 50% of SMEs fail in their first years of life due to poor financial management. When we talk about financial control, we refer to the monitoring and measurement systems implemented to track the financial resources of an organization and thus be able to show the true status of its accounts. The truth is that all companies must apply financial controls to ensure effective management of their finances and to guarantee that all people involved know the procedures to follow and their responsibilities. CTA - Text What is it and what are the objectives of financial control? The concept of financial control refers to the policies and procedures framed by an organization to manage, document, evaluate and report the financial transactions of a company or organization .
That is, it refers to all the tools and techniques adopted by a company to control its various financial affairs. The objectives of financial control include: Optimize economic resources s. This includes budgeting for proper use of available resources and prevention of leakage of funds. This will favor the maximization of profit and the creation Europe Mobile Number List of a solid economic base that guarantees the survival of the business. Maintain adequate capital . Effective financial control prevents both overcapitalization and undercapitalization. The objective is to obtain capital from cheaper sources, while maintaining a sustainable mix between debt and liquidity. At the same time, this increases the confidence of suppliers and investors. Verify compliance with objectives and detect errors and areas for improvement .
Financial control allows for a diagnosis of the situation with which it is possible to both control whether the set objectives are being met and detect possible problems or imbalances, for example, irregularities that could cause the company to lose competitive advantage . Once the risks that may endanger the financial health of the organization have been detected, the necessary measures can be applied to redirect the situation. Avoidant negotiation : this type of negotiation is known as lose-lose. Both parties consider that it is not worth negotiating at that precise moment, as there is no basis with which to begin the negotiation, and, therefore, they postpone it. In these cases, you can allow time to pass for circumstances to change or request the help of a mediator. Negotiation between several parties : this is a very complicated type of negotiation due to the large number of parties involved, so that it is difficult to reach an agreement. For example, this is the case of an employer who must negotiate working conditions with a group of several workers. In these cases, the intervention of a mediator may also be useful.