The purpose of financial analysis of a company (the study of its flow of funds) is to know their vices and virtues in the mishandling of its assets and liabilities, and determine the relevant control measures. An administration of funds.
The main strategy of the administration of funds is the financial control of the company (control of their flow of capital). Is performed in various stages, which vary according to the case of each company, but their germ is the same: financial analysis.
The financial analysis is a study that contrasts the real achievements of the company (productivity, profitability, assets, liabilities, expansion…) with the plans and objectives set for a period, and depending on the outcome applies financial controls immediate, selective or later, who seek boost and enhance the adequate flow of capital.
The tools used by the administration of funds are common to all business strategy: diagnose the problem, communicate the measures and motivate its implementation and monitoring. The administration of funds, in addition to the financial control, also consists of the determination of new business objectives, more realistic and close to the possibilities of the company.
To consolidate its new objectives, the administration of funds sets standards flexible, to be adapted to the reality and evolution of the company, drives a flow of information to detect flaws, omissions or risk situations, and it puts to the problems with corrective measures.
Tasks, all, that regulate the flow of funds with a control budget. A proper administration of funds allows not only to fix how must win the company, but how much should spend to achieve it.