Definition: is an aggregate series of processes, procedures, and policies that are employed to manage and regulate finances. They may be implemented in any form of business in order to achieve its financial goals. Financial controls are oftentimes executed through strategical planning, operating ratios, performance evaluation, and other management and financial tools. Financial controls may also take a form of an analysis of business’s actual results compared to its objectives, aims, and business plans. Its main objective implies a goal to ensure the efficient execution of business’s financial plans.
In a Sentence:
We need to check if everything is running smoothly and on the right lines, therefore it is best to implement financial controls.
Any manager who wants to effectively track the company’s progress and evaluate the business’s results should employ financial controls regularly.
During the stage of planning, we need to keep in mind possible financial controls we may want to implement in the future.
Synonyms and related terms: management control, financial activities control, corporate governance, financial tool, financial management, financial analysis, accounting standards