A decision system has great impact on the profits of the company.
It forces the management to rationalize the depreciation, inventory and inflation policies. It warns the management against impending crises and problems in the company.
It specially helps in following areas:
a. The management knows exactly how much credit it could take, for how long (for which maturities) and in which interest rate. It has been proven that without proper feedback, managers tend to take too much credit and burden the cash flow of their companies.
b. A decision system allows for careful financial planning and tax planning. Profits go up, non cash outlays are controlled, tax liabilities are minimized and cash flows are maintained positive throughout.
c. As a result of all the above effects the value of the company grows and its shares appreciate.
The decision system is an integral part of financial management in the West. It is completely compatible with western accounting methods and derives all the data that it needs from information extant in the company.
So, the establishment of a decision system does not hinder the functioning of the company in any way and does not interfere with the authority and functioning of the financial department.
Tsubames Decision Support Systems cost as little as 20 USD per month. They are one of the best investments that a firm can make.
- ▼ desember (3)