In practice, the analysis of the causes of deviations are distinguished analysis

In practice, the analysis of the causes of deviations differentiated analysis that focuses on the past, and analysis, focused on the future (the future). In this analysis of variance with the orientation for the future is possible in the case where the bank made a regular forecast of the control parameters. Comparing planned and forecasted values, we can estimate the possible deviations in the future, and to identify the causes of possible deviations. The predicted deviation is a warning that the intended target can not be achieved and that measures should be developed to address them. According to the analysis carried out adjustment of financial plans and budgets if their further implementation in this way is impractical, or view action aimed at achieving certain goals. According to the results of financial monitoring suggestions are made to adjust the target system specifications, performance current financial plans or individual budgets. In some critical cases can be justified by the suspension of individual operations, and even of individual financial responsibility centers. Thus, financial control is an important component of financial management of the bank. It provides feedback to managers paying attention to significant deviations from planned performance, which allows to make operational management decisions aimed at fulfilling the tasks. Topic: Fundamentals of Financial Management Bank | Tags: Analysis