The Accounting and the process of planning and control

Analysis, financial planning and control

It is based on coordinating the activities and evaluate the financial condition of the company through financial reports prepared from the accounting result data, analyze the production capacity, make strategic decisions with respect to the total course of business, always seek to leverage their operations, verify not only the competence of the income statement, but the situation of cash flows develop and implement measures and projects with a view to growth and adequate cash flows to obtain financial returns such as increased opportunity of investments to achieve the business goals.

Making investment decisions

Is the application of the decision of financial resources in current assets (current) and non-current (receivables long-term and permanent), the financial manager is studying the situation in the search for desirable levels of current assets, it is also he who determines which fixed assets must be purchased and when they should be replaced or liquidated, always seeking balance and optimum levels between current and non-current assets, notes and decides when to invest, and how much, if it is worth purchasing a good or right, and always avoid waste and unnecessary risks or irretrievable expenses, and even detention of the current resources, with very high expenses with property and assets that will bring some positive feedback and a lot of depreciation in value, which prevent the operation of the essential phenomenon for the company, the 'working capital'.

As criteria for investment decisions between mutually exclusive projects, there may be conflict between the NPV (Net Present Value) and IRR (Internal Rate of Return). These conflicts must be resolved using the criterion of VAL.

Making funding decisions

Comes to attracting various resources to finance current assets and non-current, with respect to all activities and operations of the company; these operations that require capital or any other type of resource required for the execution of goals or business plans. It takes in mind the combination of short and long term loans with the capital structure, that is, it assumes not borrow more than the company is able to pay and be responsible, whether short or long term. Financial director search reliable and viable funding sources, with emphasis on the balance between interest, benefits and payment. It is true that many of these decisions are made before the necessity (and even to some extent, compared to despair), but independent of the emergency is required deep and thorough analysis and study of the pros and cons in order to have security and support for decisions like these.

Tactical decisions: buy produce x, x invest rent, decision on equipment replacement

The tactical decisions on the type purchase or produce, invest or rent and also on when to replace equipment of production shall seek answers in the cost area, but will not be alone.

In the case of purchase or produce, as well as analysis on the formation of the cost of production and the price of purchasing the product ready, items such as quality, durability and guarantees should be considered when deciding,

since we have a product similar to ours, so knowing the entire production process and also