manage budgets and financial plans

5086 Words21 Pages
ASSESSMENT ACTIVITY 1. It is crucial for any business organisation to collect, file and maintain accurate financial records. Without the correct financial details in order a business would be working blind and therefore could not suitably deal with future plans and orders if they do not know actually how much is needed to keep the business running appropriately. A lack of updated and in-depth financial records are said to be one of the fundamental factors of why many small businesses fail. A recent survey of accounting firms reported over 50% of the accountants surveyed rated their small business clients accounting records as average, inadequate or non-existent. There are some very important reasons why it is vital for a…show more content…
Developing a contingency plan involves making decisions in advance about the management of human and financial resources, coordination and communications procedures, and being aware of a range of technical and logistical responses. Such planning is a management tool, involving all sectors, which can help ensure timely and effective provision of humanitarian aid to those most in need when a disaster occurs. Time spent in contingency planning equals time saved when a disaster occurs. Effective contingency planning should lead to timely and effective disaster-relief operations. The contingency planning process can basically be broken down into three simple questions: • What is going to happen? • What are we going to do about it? • What can we do ahead of time to get prepared? The purpose of contingency planning is either to prevent the loss of important information or to decrease the impact of a disaster. By having a contingency plan, a company can be “up and running” in a matter of hours, days, or months, depending on the severity of the emergency. A company with a functioning contingency plan may diminish the risk of their business expirations. Without a plan, it may go out of business or bankrupt because it could not get operations back on track due to the loss of financial data and records. Contingency planning is not something that a company can install spontaneously; time must be taken to evaluate the company and its security
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