WEEK 6 DQ 2 – Article Example
Number Financial Controls in an Organization The finance management of an organization is among the most important aspects of the organization. For any business institution to ensure that it keeps a correct and accurate track of their financial assets, it is important to have different financial controls. They are tools used by an organization to track the finances of the organization so as to ensure that there are maximum returns on the investments of the organization (Griffin, 413).
Financial statements are among the most important tools that are used by organizations in this endeavor. They are generally important records that may be kept by an organization or any business entity for formality. Studies give numerous reasons as to why this tool is among the most important tools used to check the financial position of an organization (Buffet & Clark, 18).
Financial statements are vitally useful in the determination the progress of the business entity. In most cases, financial statements regarding assets and liabilities are used to evaluate whether a business is making profits or losses. This is very important in the sense that the organization is in a better position to evaluate the strategies that need to be implemented for the success of the organization (Fabozzi & Drake, 1-5).
They are also used by the management of the organization in order to plan for the future goals and objectives of the organization. In most cases, the goals of the organization are bound to fade due to time and improvements in technology. In order to ensure that the organization competes well in the market, the goals have to be adjusted order to match those of the current trends in the market (Plunket et al. 497).
Plunkett, W. R., Allen, G. S., & Attner, R.F. Management: Meeting and exceeding customer expectations (10th Ed.). Mason, OH: South-Western Cengage Learning Publishers. 2013. Print
Griffin, R. Fundamentals of Management. New York: Cengage Learning Publishers. 2013. Print
Buffet, M & Clark, D. Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage. U.S.A: Simon and Schuster Publishers. 2008. Print
Drake, P.P & Fabozzi, F.J. Analysis of Financial Statements. New York: John Wiley and Son Publishers. 2013. Print
Plunkett et al. Management: Meeting and Exceeding Customer Expectations. New York: Cengage Learning Publishers. 2007. Print