Budget Monitoring and Format ( Individual Project ) Research Paper

Budget observe and Format ( Individual Project ) - Research Paper ExampleThe over-expense incurred by the enthronisation specialists would tighten the metre of idle funds left for the federation to meet the bunco term liabilities (Handlechner, 2008). Operational Risk The gold C ares Investment Corporation would face operational risks as the funds required for its daily trading operations would be curtailed due to the wastage of finances by means of credit cards for obtaining marketing supplies, transportation, and hospitalities. Financial Risk The work out think for Money Cares Investment Corporation includes the estimated expenditures and the anticipated sources of the revenue in order to generate the in store(predicate) cash flow and meet the future liabilities. As a result of the over-expenses incurred by the investment specialists by the use of credit cards, it would lead to the deficit in the cash flows of future, thitherby, posing financial risks in basis of the shor tage of liquidity. Actions for the Company to Succeed In order to create a situation for the political party to succeed, there should be a sufficient jibe established along with the continuous supervise for the budgetary expenses planned for the beau monde. The budgetary allocations are series of actions involving planning, implementation, and monitoring. In order to succeed, the company should construct a system of approbation for the use of credit cards by the investment specialist. The CEO and Finance department should ask the clericals of the company to undertake the official work of recording the expenses on a daily basis. The expenses to be incurred by the fashion of credit cards need to have a prior approval form a obligated authority. The investment specialists are also to be held accountable for the income generated and the expenses proposed by them. Thus, a proper budgetary control and monitoring system would help the company to succeed (Husson, 2002). A tally of th e records get out help the company to understand what amount of limit is left to be against the budget plan. This implementation of the budgetary control will help to prevent over-expenses of the company. Companys Most Vulnerable Areas The most vulnerable areas of the company are the financial procedures and instruments used for the funding of the daily operations. This involves the role of the manager and the three investment specialists. The company has elect to use credit cards in order to access funds required for transportation and hospitality of customers while having expenditures for food and drinks and marketing supplies of its solutions. The absence of a cost control mechanism supported by a lack of monitoring by the company has given a free hand to the investment specialists. The ownership of the investments by the specialists under such a process is under question. Thus, the control mechanism for monitoring the expenses of the company is the most vulnerable area of the b usiness of Money Cares Investment Corporation. The Companys Assets The companys assets are the short term cash positions held by the company which help them to service the short term liabilities. The liquidity level of the company helps them to service the expenses on credit cards and other short-run credits acquired by the company. The net current assets of the company help them to meet the cost of daily operations that include transportation costs, marketing of its solutions