Establishing Financial Control

Translate into English.

Say what is true and what is false. Correct the false sentences.

Answer the following questions.

1. What are three finance functions essential to the firm’s overall operations and performance?

2. Why is a carefully calculated financial plan so important for a company?

3. Who is in charge of financial operations?

4. What is the fundamental task of a treasurer?

5. What does the charge of financial officer consist in?

6. What are other responsibilities of financial manager connected with the trade of merchandise?

7. What must the finance manager do to be sure that the company does not lose too much money to bad debts?

8. Why is collecting overdue payments particularly important to small and medium size businesses?

9. What financial manager functions depend greatly on the information provided by the accounting statements?

10. Can you prove that finance and accounting go together like bread and butter?

1. A financial plan helps the firm to survive.

2. The chief financial officer is known as an accountant.

3. The fundamental charge of the treasurer is to control money.

4. Collecting overdue payments is particularly critical to small and medium size businesses.

5. Only financial manager can be effective at finance without accounting.

6. Match verbal phrases prepositions and nouns as they occur in the text and translate them into Ukrainian.

to be responsible	of	the firm
to depend	for	collecting overdue payments
to have an impact	for	buyers
to be in charge	on	credit
to collect	within	financial operations
to buy	on	information
to acquire funds	from	survival
to have a chance	on	the firm
to manage funds	for	profits

1. Якщо фінансовий менеджер не вірно складе фінансовий план, фірма має малий шанс вижити, незалежно від її ефективності.

2. Великий вплив на прибуток компанії мають її інвестовані грошові кошти.

3. Інформація облікової звітності про планування, отримання фондів, управління податками а також дані про результати аудиторських перевірок є дуже важливою для фінансового менеджера.

4. Однією із функцій фінансів є повернення безнадійних та прострочених боргів.

5. Як правило малі та середні фірми мають менше грошових коштів та менший кредитний резерв ніж великі корпорації.

6. Жоден менеджер не може ефективно управляти фінансами, якщо він не розуміється у бух обліку.

Pre-reading task:

What do you know about financial control?

What are possible objects of financial control?

Read the text and make up three sentences that the best summarize each paragraph.

ESTABLISHING FINANCIAL CONTROL

Financial control means the actual revenues, costs, and expenses (including the cash flow projections) are periodically reviewed and compared with projections. Deviations can thus be determined and corrective action taken. Such controls provide feedback to help reveal which accounts, which departments, and which people are varying from the financial plans. Such deviations may or may not be justified. In either case, some financial adjustment to the plan may be made.

Taxes represent an outflow of cash from the business and must be paid. Therefore, they too fall under the scrutiny of finance. As tax laws and tax liabilities have changed, finance people have taken on the increasingly important responsibility of tax management. Tax management is the analyzing of tax implications of various managerial decisions in an attempt to minimize the taxes paid by the business. Businesses of all sizes must concern themselves with tax responsibilities.

Finally, often someone in the finance department serves as an internal auditor. It's the internal auditor who checks on the journals, ledgers, and financial statements prepared by the accounting department to make sure that all transactions have been treated in accordance with established accounting rules and procedures. If there were no such audits, accounting statements would be less reliable. Therefore, it's important that the internal auditor be objective and critical of any improprieties or deficiencies he or she might note in their evaluation. Regular internal audits offer the firm assistance in the important role of financial planning.

Дата добавления: 2015-01-03