Design a control for an outflows proposal covering finance and investment.
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Controls for Outflows:
Effective financial control is essential in effective management of finance and investments. For effective control of outflows to be achieved it is critical that planning and review of controls is carried out frequently (Sharma & Jones, 2000). The first step in developing an effective control on finance and investment outflows is to plan adequately. This involves identifying where the capital is going by tracking all expenses or uses of outflows. Planning allows for estimation of outgoing capital and this can be converted into a periodical projection. Some finance and investments outflows are predictable such as rent and wages while others are difficult to estimate such as bills but previous outflows can be used to make a projection.
In controlling capital outflows it is essential to consider timing whereby we determine whether some outflows can be postponed. Cash Flow (n.d) provides that timing relates to inflows as inflows and outflows should balance. Timing also involves dates on which outflows are expected to occur and previous period dates can be used. This will enable us to identify whether the fixed payment dates are flexible. After planning and projecting capital outflows controls can then be developed.
According to Coyle (2000), there are eight principles that can be used ...
The expert designs a control system for outflows proposals. The proposals cover finance and investments.