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In the operational context of companies, a multitude of resources are allocated, transacted, contracted, and utilized. In brief, financial flows permeate corporate activities through continuous cash i

Specifically regarding financial outflows, especially concerning non-recurring expenses, the adoption of intelligent and rigorous expense control is of utmost importance.


Budgets require continuous revisions and sensible observations regarding opportunities for cost reduction and payment extensions without incurring interest, making project paybacks more viable.


Financial managers adopt at least three main management instruments:


โ€ข ๐—•๐˜‚๐—ฑ๐—ด๐—ฒ๐˜๐—ฒ๐—ฑ ๐˜ƒ๐˜€. ๐—”๐—ฐ๐˜๐˜‚๐—ฎ๐—น ๐—˜๐˜…๐—ฝ๐—ฒ๐—ป๐˜€๐—ฒ๐˜€: Budgets approved by business units are monitored by nature, flow, and utilization.


โ€ข ๐—ค๐˜‚๐—ฎ๐—น๐—ถ๐˜๐—ฎ๐˜๐—ถ๐˜ƒ๐—ฒ ๐—ฅ๐—ฒ๐˜ƒ๐—ถ๐—ฒ๐˜„: Management enhances the reviews with qualitative justifications about expenses and elaborates on the expected returns from them.


โ€ข ๐—ฃ๐—ต๐—ฎ๐˜€๐—ฒ๐˜€ ๐˜‚๐—ป๐˜๐—ถ๐—น ๐—–๐—ผ๐—บ๐—ฝ๐—น๐—ฒ๐˜๐—ถ๐—ผ๐—ป: At each phase, a new review is conducted to seek optimization and improvements, as well as to identify points of control and future savings.


Through this triad of procedures, it's feasible to conduct an integrative evaluation of business operations, enabling the identification of areas that can be enhanced in expense control.


Terus Consulting has been a significant ally for companies in optimal capital structure management, budgeting, and financial management. Get in touch with Terus!


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