Development of every company, besides growth of income, level of invested capital, number of employees, is followed by the need for more concrete and more comprehensive controlling mechanism and the need for continuous measure of efficiency and effectiveness of business activities.
We can define controlling as a set of multi-discipline knowledge that is necessary, based on data from company and outside it, to collect optimal number of those which are necessary to managers and all who manages companies for qualitative decision making process.
Controlling is also skill (know-how) i.e. philosophy of management based on economic logics of rationality, that has a task to coordinate business processes and their individual parts, and with the assistants of created integrated and encompassed managing system which finds its bases on clearly defined vision, mission and goals, be an expert assistance to management.
Basic preconditions for introduction and development of controlling in a company are: support and readiness for changes by the owner i.e. director of company, interest of management, expert controller who is well aware of all segments of business activities, highly developed accounting support (financial, cost and managerial accounting) and qualitative IT support i.e. adequate software.
Why there is no money on giro-account despite all efforts to increase sale or maintenance on last-year level? How to qualitatively manage costs? Which are the products that keep the company alive, which of them make the most money? Which are those that unnecessarily burden our warehouse making the smallest profit? Why did not we succeed to make better placement of qualitative products on the market and make profit? How much money we made this year or the previous year, comparing to competition? Are we investing into the most profitable products, the right target group, which segment of the market is the most profitable one? Are the sales conditions a tool to increase the sale or a negative impact to margin?What is the precise calculation of cover point?
Without qualitative controlling, a company is not able to get adequate answers to such or similar questions. In case the management do not receive transparent, detailed, real and correct data and information, it will surely not be able to make qualitative and rational decisions related to further business activities.
