The Financial Objectives Policy provides methods to set and approve clear financial objectives in order to assist the company in achieving improved financial performance. This Financial Objectives Procedure applies to the Finance and Accounting departments in creating specific and balanced financial objectives that align with the company’s Business Plan. (10 pages, 1820 words)
Keep in mind making decisions to apply the required emphasis necessary in terms of resources and focus to distinct business areas that contain the company assets is important. Typically these business areas are divided into four distinct segments (but could be expanded up to six to include areas such as health and safety or security, according to business unit requirements).
Financial Objectives Responsibilities:
The CFO (Chief Financial Officer) is responsible for completing and gaining the approval of financial objectives, and is responsible for the overseeing the financial health and financial performance of the company, as well as a fiduciary responsibility to shareholders. They should create objectives that adhere to the SMART Objectives philosophy, and should create long and short term objectives (i.e. one year, three year, five year, ten year) as determined necessary by the CFO, Top Management, and the Board of Directors. The CFO should meet regularly with Top Management to discuss creating balanced objectives to meet various operational needs, financial and non-financial objectives, and long and short term goals.
Top Management and the Board of Directors are responsible for reviewing and approving FA1000-1 FINANCIAL OBJECTIVES.
Department Managers are responsible for providing information and feedback necessary for preparing FA1000-1 FINANCIAL OBJECTIVES.
Financial Objectives Procedure Activities
- Financial Objectives Plan
- Creating Specific Financial Objectives
- Balancing Financial Objectives
- Approval and Monitoring of Financial Objectives
- Improving Financial Objectives
Financial Objectives Procedure Forms