Financial Planning and Control | BT StandardEffective financial planning and management are vital for the successful generation, safekeeping, and use of funds to achieve program objectives. Many government budgeting and accounting systems operate on a cash basis, recording a transaction only when cash is involved. Private-sector or semi-autonomous government programs, including many revolving drug funds RDFs , use an accrual system, which also records non cash transactions such as medicines issued. Public-sector managers can complement government accounting systems with elements of an accrual system to support more effective and efficient program management. Long-range financial plans include projections of funding and expenditures over several years and thus facilitate long-range planning for health services. For an RDF, a long-range plan can project the point in the future when revenues from medicine sales will be sufficient to cover medicine program expenses.
Financial Planning and Control – Definition, Importance and Process Flow
Effective management of business technology requires proactive and analytical financial steering to justify operational performance, investment feasibility and allocation of costs. Management, along with decision making, is dependent on transparency with clear structures and processes surrounding financial management. Financial transparency shows how accumulated costs are transferred to service consuming fees and how actuals correlate to plans. Financial planning ensures:. Cost transparency is not easy to achieve. Spends accumulate on general ledger level while budgeting is done on business technology element level and business is invoiced on a higher business technology services level.
Typically, financial planner come with perfect solutions for financial planning and control notes and also financial planning and control process flow chart. Occasionally there are some different aspects with management. Mostly they are focus is actually reducing costs instead of budget management. Hardly we must have noticed that they consider to focus on financial control. It is obvious that we are definitely live in age of financial planning and controlling.