By Controlling you can check whether a company is running "smoothly" or not. In controlling, data on various areas of the company must be examined regularly and past and current data compared.
The figures needed for controlling and planning can be found in every (good) bookkeeping system. This is where all income and expenses are recorded. Experts say: If you have your bookkeeping under control, you also have your company under control.
Simple bookkeeping and double-entry bookkeeping
Simple bookkeeping is only recommended for small businesses with simple and easily manageable business processes.
Double-entry bookkeeping is advisable for all businesses with complex business processes. For certain enterprises it is obligatory.
The most important controlling instruments
- Cost accounting: What costs do you have in your company?
- Break-even analysis: Is the company currently making a profit? If not: Why not?
- Business Analysis (BWA): Did the company make a profit in the past month or quarter? If not: Why not?
- Income Statement (EÜR) or Profit and Loss Account (P&L): Did the enterprise make a profit in the past business year? If not: Why not?
- Liquidity planning: Is the company able to pay upcoming costs now and in the near future?
Monitoring incoming invoices
Invoices that have not yet been paid can become a problem, especially for the ability to pay your bills (liquidity). Therefore, keep an eye on agreed payment dates and incoming payments.