Financial Control means using financial measures (and other measures) to monitor the performance of your entire business system.
It avoids the ostrich system of you, with your head in the sand, not knowing what’s going on.
With the right measures, you will see what’s happening.
You will see problems early and be able to fix them while the problems are small and haven’t cost you a lot of money.
You’ll see the things that are working particularly well and be able to do more of them and seize opportunities for extra profits while they still exist.
And by having a better link between what you do in the business and the performance results, you’ll understand your business better and you’ll make better decisions.
You will be able to manage for profit so your business thrives rather than worrying about making your business survive.
And as you learn to look to the future with more confidence, you’ll be able to take proactive decisions about cash and tax.
If you are growing quickly – and growth often consumes cash – you’ll be able to go to your bank manager in good time and arrange the extra facilities you need.
If you are generating a lot of cash, you will know whether this is a short term timing difference or a long term gain and be able to withdraw money from your business with more confidence.
Finally if profits are high, you will be able to take advantage of tax planning schemes which will help to reduce the tax you pay.