Financial Analysis and Internal Control
Business Managers' Companion
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Business ventures are made for the purpose of making profit. Continuity is not guaranteed when a business fails to break even. The desire of chief executives of businesses is to make sustainable profit and grow at an enviable rate, but this desire will be frustrated when the business fails to break even. A healthy looking business may not be healthy after all. Financial analysis is the medical checkup your business needs for its true health condition to be identified.A profitable business may suddenly become insolvent, and at the same time investors will avoid it like leprosy. This situation m...
Business ventures are made for the purpose of making profit. Continuity is not guaranteed when a business fails to break even. The desire of chief executives of businesses is to make sustainable profit and grow at an enviable rate, but this desire will be frustrated when the business fails to break even. A healthy looking business may not be healthy after all. Financial analysis is the medical checkup your business needs for its true health condition to be identified.A profitable business may suddenly become insolvent, and at the same time investors will avoid it like leprosy. This situation may force the company to wind up. Efficient financial analysis will reveal such situations and necessary action taken to mitigate the problem.In addition to financial analysis, risk analysis is important, as that will make the business identify potential risks before they actually take place and mitigate them. This is one of the ways to assure your business survives.Effective internal controlguarantees optimum productivity and zero fraud. Human nature demands that they be controlled or compelled to obey rules and regulations.
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