engleski

Identification of controlling and evaluation of the use of the internal financial reports in the Šibenik Knin County SME's

The modern market is characterized by dynamism, competitiveness and adoptable management. All these features encourage entrepreneurs (business entities) to develop new managerial tools that will enable them to adapt very quickly to changed business conditions. The role of managerial tools in any business entity is crucial, not only in terms of performance, but also in terms of maintenance of business operations, especially at the present time of global crisis. This paper focuses on the identification of controlling as a function of management in small and medium business entities in the Šibenik - Knin County. Also, it evaluates the use of the internal financial reports in decision-making process taken by small and medium entrepreneurs. The role of controlling as a function of management in a business entity is an important link between the accounting department and management. Controlling as a system allows the realization of competent abilities on the basis of creating an efficient business. The authors of this paper make an attempt to answer the following questions: Has controlling as a neccessary managerial tool, come into use in the most successful businesses in the area of Šibenik-Knin County? At what level entrepreneurs do accept controlling? Has the current crisis encouraged the entrepreneurs to introduce controlling as an effective way to improve their business operations, survive in the market, establish their positions and the like? Our aims is to point to the problem of the implementation of controlling and is role in a business entity at the time of global crisis. Also, we will try to emphasize the necessity of further education of the existing management with a view to increase the use of controlling and improve its effectiveness. In addition, we will try to provide the necessary guidance in order to improve the implementation of the internal financial reports as a relevant basis for decision making. Internal financial reports as a basis for the implementation of controlling function are not yet developed enough to be a sufficient basis for the controller - management relations. The process of controlling begins with collecting internal information arising from the entire organization, where financial reports of the accounting system are important foundations for further development and use of controlling. The quality of controlling in the first place depends on the cooperation of managers and controllers, as well as their successful coordination of the activities connected to this system which is called controlership. This paper implies that the related business entities are unsuccessful in terms of using the system of controlling in order to ensure their long-term existence in the market, including the long-term profit. However, the major problem, especially in the area of the County mentioned above, is neglecting the position of controlling in terms of prevention of business crisis.

control, controlling, controller, controllership

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