IMPORTANCE OF THE CONTROLLING ACTIVITY IN MAXIMIZING THE FINANCIAL PERFORMANCE OF THE COMPANY

MARZA Bogdan, Lucian Blaga University of Sibiu

MARCUTA Alina, University of Agronomic Science and Veterinary Medicine Bucharest, Romania

MARCUTA Liviu, University of Agronomic Science and Veterinary Medicine Bucharest, Romania

Abstract:
Market economy, as a modern form of organization that promotes competition, imposes essential conditions for the existence of companies. New business trends, digital transformation and the dynamics of business processes also bring about changes in management and financial-accounting activity. Competitiveness and performance are elements that depend on the constantly adapting of companies, which have to meet the demands of consumers and market conditions and which impose continuous challenges for the mangers. To meet these challenges, we need new systems of analysis and deception, based on the best knowledge of the activity being carried out. This requires not only the continuous improvement of the knowledge of the results, but also an analysis of the basis on which corrective measures can be taken. That is why the tool that is required under these conditions is controlling, which provides data for various purposes, including planning, budget control and costing, thus overcoming the issue of managerial reporting and becoming a tool that adds more responsibility to decision-makers. It becomes a form of reflection not only of company performance but also of managerial performance. In other words, controlling allows the creation of early warning systems, which can draw attention when certain limits are exceeded, allowing the development of protection scenarios.

Keywords: controlling, accounting, profitability

JEL Classification: M41, F38

Volume: 70, Issue: 1

Pages: 143 - 152

Publication date: August, 2018

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/70112marza&marcuta&marcuta.pdf

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