№ 12/2017

№ 12/2017

Fìnansi Ukr. 2017 (12): 53–71

THEORY AND HISTORY OF FINANCES

PAIENTKO Tetiana ¹, FEDOSOV Viktor ²

¹Berlin University of Applied Sciences of Economics and Techniques (HTW)
OrcID ID : https://orcid.org/0000-0002-2962-308X
²SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0003-1092-4218

Conceptual principles of financial controlling

This article is the first of three foundational articles examining the phenomenon of controlling as a philosophy of financial management. The second article will focus on the peculiarities of the financial controlling organization at the micro level, the third will be about the features and the need for the introduction of financial control at the macro level. The term “controlling” is relatively new in the dictionary of Ukrainian economists, and this novelty causes an ambiguity of approaches when determining its essence, scope, functions, tasks, tools, and ideology. The purpose of the article is to identify the essence of financial controlling at the present stage of Ukrainian economic development, to systematize the main areas of its manifestation, to clarify the functions and principles of controlling, and to determine the peculiarities of its application in financial management at micro and macro levels. The article reveals the main aspects of the controlling application and explores its main concepts. The main concepts of controlling include accounting, management, technology, coordination, system management, and information. It is substantiated that financial controlling is a system of decision-making and implementation. The main benefits of financial controlling use are better diversification of risks, visibility, creation of opportunities for innovation, more clearly defined requirements and criteria for management, and improved ability to identify risks and weaknesses. The organization and functioning of financial controlling requires compliance with the following principles: continuity and sustainability, timeliness and flexi­bility, strategic thinking, documenting, openness and transparency, accountability and responsibility. It is determined that traditional controlling functions are planning, accounting, analysis and control. They should be completed by specific functions such as informational, technological, monitoring, and motivational. The use of controlling at the micro and macro levels differs by many characteristics, however, at both levels controlling allows to some extent the avoidance of accidents in management or prompt responses to dangers that threaten the managed systems. The main stages of the organization and functioning of financial control are the establishment of control standards, assessment of current achievements, analysis of deviations, and the implementation of corrective measures.

Keywords:controlling, financial controlling, concept, principles, transparency, mana­gement, function

JEL: D73, D79, M40

PAIENTKO T. . Conceptual principles of financial controlling / T. . PAIENTKO, V. . Fedosov // Фінанси України. - 2017. - № 12. - C. 53-71.

Article original in Ukrainian (pp. 53 - 71)

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