Commercial Awareness Preparing Budgets
Commercial Awareness Preparing Budgets
Introduction ●WHAT∴ is financia| contro|? ●WHY∴ do we need it? ●HOW.. do we do it? ●WHEN, do we do it WHo is involved?
2 Introduction • WHAT … is financial control? • WHY … do we need it? • HOW … do we do it? • WHEN.. do we do it? • WHO … is involved?
WHAT Is financial control? A definition The regular process of ascertaining actual earnings actual costs comparing them against planned earnings planned costs and projecting any trends to the end of the project
3 WHAT is financial control? A definition • The regular process of ascertaining – actual earnings – actual costs • comparing them against – planned earnings – planned costs • and projecting any trends to the end of the project
Successful financial control To do this successfully both earnings and costs must be identified classified allocated recorded
4 Successful financial control • To do this successfully both earnings and costs must be – identified – classified – allocated – recorded
Control-a simple diagram The Control Cycle Plan Action Measure Monitor
5 The Control Cycle Control - a simple diagram Action Plan Monitor Measure