Controlling: Financial Control

Finance is what makes a business run. In order for a business to suceed there needs to proper financial controls in place which guide, controls, and manages the daily financial tasks of an organization.

There are no accounting issues, no trading issues, no reserve issues, no previously unknown problem issues.
Kenneth Lay

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Reid Engstrom, from VMware describes how VMware cloud solutions can help organizations plan, control, and recover the costs to provide IT services.

What is Financial Control?
Financial control is the control of financial resources as they flow into the organization (revenues, shareholder investments), are held by the organization (working capital, retained earnings), and flow out of the organization (pay, expenses) (Griffin, 2013). Financial control can be almost limitless and can touch almost any aspect of an organization finacial structure.

The Need for control.
The need for financial control in a business is singular. To make sure the company is properly capitalized and can pay all of its bills.Without proper financial controls a business is unlikly to suceed. There are many tools that can help a business suceed in the realm of finance. These can range from simple software to 3rd party audits.

Types of Financial Budgets:
Financial Budget

  • Cash flow or cash budget
  • Sources of cash
  • Capital expenditures budget
  • Cost of major assets
  • Balance sheet budget
  • Forecasts

Operating Budget

  • Sales or revenue budget
  • Income expected from sales
  • Expense budget
  • Anticipated expenses in time period
  • Profit budget
  • Difference between sales and expanses

Nonmonetary Budget

  • Labor budget
  • Labor costs
  • Space budget
  • Space available
  • Production budget

Tools:
Financial Software

  • QuickBooks: The Quickbook line of software include a variety of financial support tools from inventory management, payroll, sales, and billing.
  • Fintel: Fintel provides software for the analysis of business metrics using data from financial statments, liquidy, revenues and more.
  • Accounting Tools: Various tools for accounting purposes.

Accounting Forms:
Everyday forms concerning payroll, budgeting, and sales.
Forms

Links
GAAP: Generally Accepted Acounting Principles
CPA: Documents on becoming a CPA
Auditing: Tools and technique for conducting an audit

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