Answer to Question #78871 in Finance for Liam Johnston

Question

Why is it important to report actual income and expenditure figures against budget figures at regular intervals?

Answer 1

Good financial management systems and processes for tracking resource utilisation are essential for a department to make effective use of its resources. Effective planning and financial control will help departments to:
• ensure the efficient and effective use of resources
• make sound business decisions
• demonstrate accountability
• take remedial action where needed