Financial controls are used to manage financial resources which are need to ensure that a business can continue to exist. They are made up of procedures, policies, and processes, sometimes as simple as dual signatories on payments to prevent fraud. As a company get’s larger, or seeks to invest in new activities, it should use Budgeting, Business Plans and Forecasting to demonstrate to management and shareholders that the company’s prospects are good or, to banks that lending is acceptable.

• Budgeting will help the organisation set detailed targets in terms of costs or operational centres, that are balanced by cash flow in the form of income targets, debtor payments, bank funding and returns to employees and shareholders. It allows businesses to plan.
• Business Plans are usually used to raise finance. As such it is a document that provides a description and overview of your company’s business, explaining your business strategy and key goals to get from where you are now to where you want to be in the future. How you make your business more profitable and increase assets. What your plans for growth are and, give a view of the how it will develop over a five year timescale.

• Forecasting are a key element of business plans but, can also be developed for specific investments to help managers understand whether it is worth undertaking a large investment in an asset and, therefore, present an acceptable case for funding to say banks or shareholder.