Accountancy and finance objectives / strategy Flashcards
Why are setting objectives important ?
It allows a business to prioritise strategies
Allows them to compare performance against rivals
Allows investors to see what’s going on
Needs to be seen by creditors for payment ability
Can compare figures year on year
What are the following things that need to be considered when setting financial objectives ?
Legal state and size of the business
The budgets set / will they fit the financial obj’s
State of the economy / government in power
If information is timely to support decisions
Legislation in place
How are financial objectives used for stakeholders / what do they see in them ?
Directors - use finance info to make decisions
Suppliers - See if the business is good enough to pay money back
Competitors - to measure performance between them both
Banks - See if they can make repayments / can be made
