Management Accounting and Financial Control
Advantages of implementing a Budgetary Control System with Projections in your company:
- Maximize PROFITS
- Improve internal processes to be more competitive
- Anticipate decisions to achieve desired results
- Encourage the entire organization to continuously improvement and not be left behind
- Delegate responsibilities and Evaluate the performance to Directors
This way of keeping a budget control changes everything. We had never tried it because we did not think it would be useful. But with Dani’s methodology we now see the potential and we think it will help us in very many ways.
The Budgetary Control technique and tool is helping us to better manage expenses and that allows us to make better decisions. A great contribution to our management control.
Are you worried about the calculation of costs and profitability in your company, the lack of liquidity, not knowing what you have earned and spent versus the budget, not having key performance indicators that allow you to achieve your objectives, the lack of information in key areas such as manufacturing or the dedication of too much administrative time to your processes?
Calm down is not the end of the world, it is not as important as I alarm it, many companies work without Cost Calculation, without Budget Control, without Analytical profit and loss statement, without Budget control or Treasury Forecasts, without Indicators Control, without analysis of internal information, without information for decision making, and they perform phenomenal, they earn a lot of money, they grow and build empires. Growth is organic, business works alone. There is plenty of money to invest, diversify and thus continue to earn more and more money.
The problem begins when the situation is reversed by whatever cause or situation, the company turns into losses, there is a lack of liquidity, the empire crumbles, competition gains market share, customers demand more quality at a lower price, the market changes and the company is not able to adapt the new environment… What can the company do? Is it too late to react? Hire a consulting company? but if there is no liquidity!! Fire employees? liquidity is also needed to pay compensations!! Sell the company? It may be a solution, but the value of the company can be very low. Now you miss that information that could have helped you managing resources better and making more valuable decisions. But it’s still a little late for that. There is no solution anymore!
Many companies consider the area Management Account exclusive to multinationals and large companies. But they don’t realize that the only thing that makes them different is the size. All of them need the best internal information to minimize the risk and make correct decisions.