Week 2 Discussion Questions DQ#1: How do you define strategic planning? What are some differences between strategic and financial planning? What financial problems might an organization encounter when implementing a strategic plan? I believe strategic planning is the process, which takes place to set organizational goals to meet the expectations of the mission and direction of the organization. Strategic planning focuses on the long-term goals of an organization, therefore it differs from financial planning.
This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate. 3.1.11 Master Budget The master budget is “a summary of company’s plan which formalizes the whole budget system into one single final document in which all the operational budgets flow; its goal is to draft the main economic and financial statement”. (Reference
It is the responsibility of Retail Banking to ensure that payment for expense is processed in the first instance and that secondly an adjustment allocation is charged back to both Commercial Banking and Financial Planning cost centres for the expense. The cost allocation basis that is utilised is calculated on the amount of floor space that is allocated to each department which also has a direct correlation to the number of full time equivalent staff. The cost allocation is agreed prior to each financial year by the stakeholders namely the Heads of Retail Banking, Commercial Banking and Financial Planning and is reviewed annually. Once agreement has been reached the outcome is communicated to relevant parties prior to the reporting period. The allocation of space and staff numbers for the reporting period 1st July 2013 to 30th June 2014 are detailed below.
Developing a strategic business plan to manage capital and human resources is quintessential to escaping some of the potential pitfalls. In addition, creating pro forma financial statements to determine the assets necessary for business operations, and to
Businesses require a tool to measure the execution of objectives. As far as the goals of objectives they are supposed to align with a stated vision and mission. Effective objectives ensure that daily activities align with the big picture or if there will be a need to adjust redirect focus. A balanced scorecard is a tool, generated by Robert S. Kaplan and David P. Norton. Authors Pearce and Robinson (2009) suggest, a balanced scorecard “Is a set of measures that are directly linked to the company’s strategy,” “Directs a company to link its own long-term strategy with tangible goals and actions,” and “Provides a framework to translate a strategy into operational terms” (p. 202).
The operational audit studies the specific parts of an organization with the purpose of measuring its performance. Performances are measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP).
Inventory and warehouse cycle Inventory accounts for a large portion of a company’s assets and is one of the more significant accounts presented on the financial statement. The effects of inventory can complicate physical control, contributing to more time spent when conducting the audit. For that cause, when constructing audit programs for inventory, the auditor should want to develop a plan such where risks are reduced to acceptable levels for the inventory cash cycle. Such a plan includes description of nature, extent of the planned risk assessment procedures, and above all, timing. In preparing the audit program for Apollo Shoe, Inc. the auditor should consider the primary objective which is to provide assurance to the stakeholders, stockholders, and other interested parties that the financial statements fairly account for raw materials, finished goods, work-in
(asic.gov.au) · As the financial markets became mainstream and matured, the access to capital markets and their scrutiny have both increased. Along with the added volatility, the lending markets have seen similar risks as equity markets. With the increased speed of both financial information and market changes, the rating agencies are more important as a first step, as they are to be scrutinized for their ratings and the trend in their rating changes. (investopedia.com) · CRAs and their ratings played a critical role in the recent market turmoil. Unlike securities trading on deeper, more transparent markets, credit ratings have had an inordinate impact on the valuation and liquidity of subprime RMBSs and RMBS backed
Organizing and directing is thinking of ideas and putting into effect. The established plans will help run the company in a better financial future. The managers have to decide help to organize the information and direct employee to follow the right concept to better the company. Last elements is the decision making is the deciding which choice is right and see if there are any alternatives for the company financial
. . management control device known as responsibility accounting.” Today responsibility accounting is known as managerial accounting, a gathering of information for internal users. Simply put, managerial accounting is a process that gathers information from sources such as operations, customers, competitors, suppliers, and finance to help managers control operations and make plans that can drive them closer to achieving their company