BUSINESS FINANCIAL MANAGEMENT AND CONTROL

The basic outline for the financial management and control of a business includes the following planning and operating model; requires board oversight

  • Sufficiently realistic capitalization
  • Well defined organization with identified responsibilities and authority
  • Comprehensive business plan
  • Annual budget with goals and accountability
  • Auditable checks and balances

Financial management and control in a small business is particularly important due to the business size not generally providing staff sufficient for preferred checks and balances through separation of authority controls. The development of a comprehensive business plan, a detailed annual budget, and an organization with defined responsibilities and authorizations, form the basis for an integrated financial business model for small or large businesses.

The best business model to effect maximum business financial management and control will still require continuous monitoring and updating due to changing events and opportunities. The best test of the control effectiveness of the model is through the use of regular management reporting, external independent auditors, supported by a diverse and independent board of directors.

The following five sections are from David Peffer an accomplished Senior Executive, Accountant, and Consultant with more than 30 years of success in a variety of manufacturing industries. Leveraging extensive global experience with rapid growth management and strategy, David is a valuable asset for companies seeking guidance on turnaround, expansion, and cost improvement. His broad areas of expertise include strategic planning, M&A, capital acquisition, cash flow management, stakeholder relations, change management, and business re-engineering.

 

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