UC12 - Assist the operations related to the activities of the controllership in

organizations

Technical Research
Robert Lineker - Technical Administration

Controllership

Controllership is a segment of Accounting Sciences that contributes to management of

quality, coordinating budgetary and administrative issues.

This area can also be seen as a product of the evolution of accounting which, despite
to be fundamental for the structure of any organization, it ended up being restricted to tools and
technical processes.
The controlling department's primary objective is to provide subsidies (information) to facilitate the
decision-making process. It is the tool that aims primarily to assist the
organization in its continuity, achieve its goals and reach its vision.

An efficient and effective control department must be capable of organizing and reporting data.
relevant information and exert a force capable of influencing the decisions of the managers of
entdade”. (OLIVEIRA, 1998, p.19)

According to this same author, an efficient controller must:

Organize and report relevant data and information for decision makers;
Maintain permanent monitoring of the controls of the various activities and of
performance of other departments;
Exert a force or influence capable of affecting the decisions of the entity's managers.
Some activities of the controlling department:

Planning and Control - Brings together the main actions carried out by the controller, the
to create a plan aligned with the mission and objectives of an organization;
Interpretation of Reports - Compares what was planned with the actual result,
interpreting the recorded information;
Assessment and Consulting - Analyzes the management segments, their effectiveness and suitability to
objectives and policies of the organization. At the end of this evaluation, strengths and those
what needs to be improved will become evident;
Fiscal Management;
Protection of Assets;
Economic Evaluation.
The controlling department plays a fundamental role in analyzing the financial health of the company, as
gathers data on each transaction, investment, revenues, and costs.

Your reports indicate signs of waste, inadequacies, and in critical cases, they reach
reveal money deviations.

In addition to providing information to increase profits, organizations that have control

internally they have support for a cost reduction policy.

Controller - The professional in charge of the Controllership

is responsible for the entire Controller area. He is the manager who, depending on the structure,
reports directly to senior management or specifically to Finance. However, it is the
professional who conducts the necessary planning: that is, it is your role to manage the Budget
Business.

Among your functions are:

Extract and consolidate information from other areas of the company;

Build the Budget Planning;
Global administrative control of the organization;
Performance reports for administrative and accounting decision making;
Track the planned vs. actual according to the company's objectives;
Build scenario simulations.

The Controller is responsible for all budget control, planning,

data and information structure for decision-making. The area, like the Controller,
works continuously alongside the board and other areas, whether assisting with
relevant information in strategic decisions or collecting data for construction of
Budget Planning.

Financial and Economic Indicators

The prior self-knowledge and the periodic assessment of management indicators are
fundamental for good management!
Therefore, it is important to keep in mind that proper management of these indicators is essential.
to make a structured analysis that is well suited to the reality of the business.
In general, financial indicators are divided into strategic and operational.
four large groups, according to the origin of the information and also the objective of
analysis.

Profitability Indicators

The profitability indicators serve to measure the economic capacity of the company, this
it highlights the level of economic success achieved by the company's invested capital.

When assessing profitability, investors will be able to decide whether it is worth keeping the
venture, whether it is economically interesting to invest more capital in the business or if the
the company is providing a return lower than other investment opportunities
available.

Asset Turnover - Analyzes the ratio of the company's net sales in relation to the asset
total and assesses the representation of revenue in relation to the capital invested.
The calculation is done as follows: Asset Turnover = Net Sales / Total Assets.
Net margin - Determines what remains from sales after deducting all
expenses, including taxes. Compares the profit attributable to shareholders with the
income volume generated from your operations. The calculation is done as follows:
Net Margin = (Net Profit / Net Sales Revenue) x 100.
Return on Investment (ROI) / Asset Profitability - ROI, return on
investment is the relationship between money earned or lost through a
Investment is the amount of money invested. It reveals the potential for generation of
profits, showing how much the organization earned in Net Profit for each real of
investments originating from own or third-party capital. The calculation is made of the
the following form: ROI = (Net Profit / Total Assets) x 100.
Return on Equity (ROE) / Return on Net Worth - ROE if
refers to a company's ability to add value to itself by using its
próprios recursos. Demonstra qual a taxa de rentabilidade obtda pelo Capital Próprio
Invest in the company and reveal how much the company earned in Net Profit for each.
R$ 1.00 of equity capital invested. The calculation is done as follows: ROE = (Profit
Liquid / Equity) x 100.
Operating margin - Establishes what percentage of each real in sales remains
after deducting all operating expenses (including the difference between the
financial income and expenses), except for Income Tax. The calculation is done
Operating Margin = (Operating Profit / Sales Revenue) x
100.
EBITDA - Represents the company's cash generation, that is, how much the company
generates resources only in its operational activities, without taking into account
the financial effects, depreciations, and amortizations. It is one of the indicators most
used today in the business environment through financial management, including for
comparison with the market. The calculation is done as follows: EBITDA = Profit
Operating Profit + Depreciation + Amortization.

Indebtedness Indicators (Capital Structure Indicators)

They demonstrate, just like liquidity ratios, the financial situation of the company.
should also be analyzed in comparison to the averages of companies in the segment.
They show the degree (quantity) of indebtedness and the composition (quality) of it.
indebtedness.

Participation of Third Party Capital - Indicates the percentage of Third Party Capital in
relation to Equity, reflecting the company's dependence on the
external resources. It shows us the company's resource acquisition policy. This
And if the company has been financing its assets with its own resources (Equity
Liquid) or third parties (Current Liabilities + Non-Current Liabilities) and in which
proportion. The calculation is done as follows: Participation of Third-Party Capital =
(Current Liabilities + Non-Current Liabilities) / Equity.
Debt Composition - Shows how much of the company's total debt should be
short-term payables, that is, short-term liabilities compared to liabilities
totals. Be careful, as the more short-term debts there are, the greater the pressure will be for the
empresa gerar recursos para honrar estes compromissos. O cálculo é feito da seguinte
Format: Debt Composition = Current Liabilities / (Current Liabilities +
Non-Current Liabilities.
immobilization of equity - Represents how much of the Equity of
the company is applied in the Permanent Asset, that is, how much of the Permanent Asset
the company is financed by its Equity, showing the greater or lesser
dependency on third-party resources. The more the company invests in Atvo
Permanent, fewer own resources will remain for current assets and the greater will be the
dependence on third-party capitals for financing of Current Assets. The
The calculation is done as follows: Immobilization of Equity = Assets
Permanent / Equity.
Immobilization of Non-Current Resources - Demonstrates percentages of Resources
Non-Current assets the company applied in Permanent Assets. The calculation is done as follows.
Form: Immobilization of Non-Current Assets = Permanent Assets / (Net Worth
Liquid + Non-current Liabilities.

Liquidity Indicators

Current liquidity (CL) - It is one of the most used indices. It measures the ability to
company's short-term payment. Current Liquidity Index = Asset
Current / Current Liabilities.
Immediate Liquidity (IL) - Measures the immediate payment capacity of the company only.
through the availabilities, that is, cash, banks, and investments
immediate liquidity. Immediate Liquidity Index = Available resources / Current liabilities.
Acid-Test Ratio (AT) - The acid-test ratio is similar to the
current liquidity, but without considering the company's inventories. Acid-Test Ratio
Current Liquid Assets / Current Liabilities.
General Liquidity Index (LG) - Also known as Financial Liquidity Index,
It shows the company's long-term payment capacity. Liquidity Ratio
Equity = (Current Assets + Non-current Assets) / (Current Liabilities + Non-current Liabilities)
Circulating.
Working Capital (WC) - It is known as financial slack, that is, it is the resource
available that allows the company to operate and manage its inventories. Working Capital
Líquido = Atvo Circulante – Passivo Circulante.
Activity indicators

They demonstrate the time that "the company takes, on average, to receive its sales,
pay for your purchases and replenish your stock.

Through them, it is also possible to verify whether the value of the assets is reasonable, too high or
too low in relation to the current and projected sales level.

The activity indicators indicate the rotations experienced by capital and by employed values.
in production, indicating how many times they were employed and recovered.

Average Stock Holding Period (PME) - Demonstrates the efficiency of inventory management.
It corresponds to the time the product remains stored until its sale.
Average Inventory (2 years) / Cost of Goods Sold (COGS).
Average Accounts Receivable Period (PMR) - Shows the average time it takes for the company to receive.
your sales. PMR = (Accounts Receivable due / Sales) * 360.
Average Payment Term (APT) - Demonstrates the efficiency of inventory management.
It corresponds to the time the product remains stored until its sale. PMP
(Payment to Suppliers / Value of Purchases) * 360.
Working Capital Requirement (WCR) - It is the minimum total amount that the company needs.
to have cash. This amount serves for the company to meet its obligations and
maintain the necessary operations without stopping due to lack of financial resources. This
the indicator is very useful to avoid the total indebtedness of the company. It
it also has a great direct impact on the company's cash flow. NCG = PMR - PMP.

Budget

Oliveira (2009, p. 290) defines the budget as a formal expression of policies, plans,
objectives and goals set by senior management as a whole, as well as for each
one of its subdivisions. In a summarized way, it is a plan that covers everything
the phases of operations for a defined future period.

Warren, Reeves, and Fess (2001, p. 178) argue that the budget sets a course for the
company, outlining its plans, in financial terms, as it can help an institution
to operate during the year and to reduce negative results.

The budget is directly related to the strategic planning process of

an organization. According to Tung cited by Souza (2007, p. 80), it is the presentation of the results
anticipated from a plan, project, or strategy, whose purpose is to create a foundation for
forecasting and controlling economic-financial events, acting on global operations of the
company, establishing a sequence of organized financial actions that the company must
execute.

Gimenez (2009, p. 24) highlights some important points of the budget, such as:

Formal plans of the organization;

Guidelines for future actions, in accordance with the strategic plan;
Quantitative and qualitative expressions of the organization's plans;
Tool for fulfilling administrative and planning functions,
coordination and control;
"Compass" that guides managers in decision-making;
 Instrument for measuring, analyzing, and controlling the value added.

Gimenez also cites (2009, P 24) that budgets can be short-term (one or two
years) or long term (most of the time 5 years). What has been observed is a higher level
detailed in the first two years and a more generic one for the following years. Both are
prepared by responsibility centers, updated according to the disclosed indices
through the market.

In today's globalized and competitive world, the company that aims to maximize its
results, as well as the continuity and sustainability of their businesses, in addition to thinking and
acting for the short term will be different if doing the same for the long term.

According to Oliveira, Perez Jr. and Silva (2008, p. 119), the role of the budget in management
a company is better understood when related to administrative functions, which
Basically, they are: planning, organization, and control.

Thus, the responsibilities can be described as follows:

planning: describes how the executive and the company intend to achieve the results
clamored;
organize: describes the best arrangement of the company's resources. The activities
they must be arranged in a way that allows for the achievement of the proposed objectives
efficient and effective;
control: describes the assurance that all efforts of the company – executives and
employees - should be coordinated with the accomplishment of the organization's objectives.

According to Gimenez (2009, p. 27), among the various functions of the budget, the most notable are:

direct investments towards the most economically viable opportunities,

consonance with the company's objectives;
establish and review measurement parameters through an accurate review of
processes and activities;
monitor the results obtained vs the plans outlined.

According to Gimenez (2008, p. 84), organizations that have abolished the budget use other
tools or techniques for performance management. Some examples are Costing by
Activity, the Balanced Scorecard, the Rolling Forecast, and Benchmarking, as well as indicators of
performance that contributes even to defining goals and imposing controls.

One of the main points of attention in the budget is the cost.

Hope and Fraser (2003, p. 6) recognize that the budget, if used responsibly,
help high executives maintain control over multiple divisions and units
business; however, they warn of the possibility of "profit manipulation" or even fraud,
in case it is in the wrong hands. This observation is based on the fact of the pressure on the
performances, existing, especially during the deterioration of economic conditions.

In general terms, organizations that exclude the budget transfer the decision-making process.
from the center to the periphery. It should be noted that a high degree of decentralization can be
I also obtained in a modern budgeting process, in which the managers of the different
areas make their budget proposals and are responsible for their implementation.

References
htps://[Link]/bitstream/capes/430204/2/eBook_Introdu%C3%A7%C3%A3o_
Controladoria [Link]

file:///C:/Users/378866/Downloads/27970-Texto%20do%[Link]

htps://[Link]/blog/controladoria/

htps://[Link]/blog/controladoria-nas-empresas/

ht[Link]