Answer to Question #65159 in Finance for nhattran

Question

7. How often should business review financial information against the financial objectives of the business? Give detailed reasons for your response.

8. Outline the methods of monitoring financial performance a manager may use in assessing and reviewing financial information.

9. In reviewing budgetary information it is important to be able to make any changes to ensure the financial objectives are being met. When implementing any changes what are the steps a manager should undertake to ensure the proposed change is the correct one and the teams are informed of the changes?

Answer 1

7. The business should review financial information against the financial objectives of the business according to the properties of business, but not less than once a year.
8. There are a number of ways you can monitor the financial performance of your business using available data.
By using financial ratios you can assess where your business is underperforming, and judge the effects changes in one area will have elsewhere.
Monitoring figures closely will allow you to maximise efficiency and minimise waste, which will help your business in the long run.
9. In reviewing budgetary information it is important to be able to make any changes to ensure the financial objectives are being met. A manager should undertake different steps to ensure the proposed change is the correct one and the teams are informed of the changes according to the tasks and properties of business.
Reference:
https://www.business.qld.gov.au/running-business/finances-cash-flow/managing-money/monitoring-performance