Why is financial controlling necessary?

Financial controlling is a means of continuous promotion of financial effectiveness.

The company must balance its cash flows so that it does not go into debt or become insolvent.

Effective financial controlling procedures must be applied, as a regular, continuously repeating series of activities.

Operating cash expenses and income can diverge significantly from each other over time, as a result of which the return on cash expenses and cash receipts can increasingly diverge from each other over time, therefore the risk of liquidity difficulties can be very high on an ongoing basis.

Due to globalization, the profitability of both production and service companies is becoming more and more dependent on financial factors outside the company, e.g. from exchange rates and bank interest.

The company manager or owner can delegate complicated and important tasks to the financial controller.

This responsibilities may include:

– daily global financial management,

– financial planning and analysis,

– the financing of corporate operations,

- taxation,

- sales,

– comprehensive company development proposals.

Efficient management of financial assets, economical financing, are in the interest of the owners.

We produce in vain at favorable costs if we do not ensure favorable exchange rates, if we do not choose economical financing, if our investment projects are not efficient.