The financial and comptroller area is made up of a set of activities aimed at achieving the objectives of safeguarding and investing the values and assets of a company, maintaining adequate information systems for the control of assets and operations of said company and protecting the invested capital.
The financial function is essential for the success of any factory negotiation: the optimum amount of money must be invested in raw materials, obtain bank loans, obtain sufficient fixed capital (land, plants, machinery and equipment), grant loans to clients and keep the operations of the company at a profitable level with the funds and resources available.
In other words, liquidity and financial balance are necessary to sustain the company. Financial problems have 2 main origins:
- What is needed to keep the factory in periods of expansion, contraction and recovery, decisions to optimize manufacturing activities.
Currently and in order for the financial function to efficiently fulfill its objectives, its activities have been divided into two large groups:
Comptroller and Treasury, which are specifically responsible for the following:
Comptroller functions.
1. Planning for control of operations.
2. Information and interpretation of the results of operations and financial situation.
3. Evaluation and deliberation.
4. Tax administration.
5. Reports to government agencies.
6. Coordination of external audit.
7. Protection of company assets.
8. Evaluation of the economic environment.
Treasury Functions.
1. Capital raising.
2. Relationship with investors.
3. Obtaining short and long-term financing.
4. Banking and custody.
5. Credit and collections.
6. Investments.
7. Company insurance.
Cost accounting is a means that the controller uses to cover the functions that have been identified, since the quantitative information it provides is closely related to the activities of the controller.
The controller assists in planning, organizing, coordinating and controlling all the functions of the company. It must be an integral part of the administration of a business, carrying out specific functions in three different areas:
Planning.
You must establish, coordinate and direct an adequate plan for the control of the operations of the firm, which includes:
- Short-term profit plan. Fixed asset investment projects and their financing. Sales forecasts. Cost and expense budgets and cost norms.
Control.
You should compare the actual results with the operating plans and the established norms and report and interpret the results of the operations at all levels of the organization and to the shareholders of the company, by means of compilation of accounting records and reports, and adequate statistics..
You should evaluate the accumulation, distribution, control, analysis, interpretation and projection systems of the firm's costs.
Other reports.
You should consult with all areas of the organization responsible for actions or policies on any phase of the company's operation, it is responsible for protecting business assets, as well as tax matters, reports to the government and the interpretation of economic forces that may affect the company.
