Financial controlling

What is meant by Financial controlling?

The term "financial controlling" refers to the process of monitoring, analyzing, and managing the financial aspects of a company. The goal of financial controlling is to ensure the financial health of the company by collecting, analyzing, and interpreting financial data to make informed decisions and support the company's strategy. Financial controlling includes both budgeting and liquidity management as well as profitability monitoring.

Typical software functions in the area of "financial controlling":

1. Budget Planning and Monitoring: Creation, management, and monitoring of budgets to steer the company's financial performance.
2. Liquidity Management: Monitoring and managing liquidity to ensure the company remains solvent at all times.
3. Cost Analysis: Detailed analysis of cost structures to identify savings potentials and increase profitability.
4. Revenue and Profitability Analysis: Evaluation of financial performance through the analysis of income statements and profitability metrics.
5. Variance Analysis: Comparing planned budgets or forecasts with actual results to identify deviations and take corrective actions.
6. KPI Reporting: Creation and management of financial key performance indicators (KPIs) for regular reporting to management.
7. Financial Forecasting and Scenario Analysis: Developing financial forecasts and conducting scenario analyses to assess potential developments and their impact on finances.
8. Investment Controlling: Analysis and monitoring of investment projects to evaluate their profitability and strategic value for the company.

Examples of "financial controlling":

1. Budget Deviation: A variance between the planned budget and actual expenses or revenues.
2. Cash Flow Analysis: Examining cash flows within a specific period to assess the company's liquidity.
3. Break-Even Analysis: Calculating the point at which revenues cover costs to determine the profitability of a project or product.
4. Financial Metric: A metric such as Return on Investment (ROI) to evaluate the efficiency of an investment.
5. Liquidity Forecast: Predicting the company's future liquidity situation based on current and planned cash flows.
6. Cost Reduction Measures: Strategies to reduce operating costs to improve profitability.