Financial Monitoring Control for the Enhancement of Traditional Financial Techniques

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Financial Monitoring Control for the Enhancement of Traditional Financial Techniques What is FMC? Financial Monitoring and Control (FMC) refers to a system for thcontinual monitoring of internal financial controls. The purpose of setting up the FMC system is to improve decision-making and management of finances so that the overall objectives of the organization can be achieved. The FMC is designed to reduce risk and to increase the probability that benchmarks will be achieved by the organization or public entity. FMC can be thought of as a quality control process for the financial functions of the business. FMC is similar to auditing in that it provides management the ability to forecast future finances of the organization. FMC strengthens the responsibility of the leaders and increases the efficiency of the organization. Control mechanisms must be defined in the policies, procedures, and strategy of the company. FMC is the cornerstone of successful long-term strategic management. Focusing on short term goals assures that long-term goals will be met. Who can Utilize FMC? The key to understanding how FMC can be utilized by many different organizations is to understand the difference between FMC and a budget. A budget reflects projected expenditures and incomes for specified time. However, the budget does not always reflect reality. Actual cash flow typically varies from the budget in either a positive or negative direction. FMC represents a set of policies that

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