Chapter 7 links closely with the preceding chapter and is concerned with monitoring and controlling the financial performance of the business. The objective of this chapter is to provide a practical understanding of some of the basic methods of maintaining financial controls, and of some of the simple techniques used for assessing financial performance, in order to make the reader aware of how these can be employed to the benefit of the business. These will include:
• basic accounts and double-entry book-keeping;
• monitoring budgets and cash flow;
• profit margins and mark-up;
• stock control;
• aged debtors accounts;
• credit control procedures;
• accounting ratios.
For the ...