Current Controlling Challenges in Small and Medium-sized Companies on the Specific Example of Falling Profits and Accurate Sales Planning in a Family Business

In: Gazdaság és Társadalom, Band 30, Heft 4, S. 31-62

Abstract

The globalization of the markets is not only a challenge for large companies. Small and medium-sized companies are also becoming more involved in new markets more than assumed and statistically recorded. They are required to position themselves more strongly on foreign markets due to increased competitive pressure, insufficient potential on the domestic market and narrower fields of market activity. Small and medium-sized companies are only exposed to minimal obligations under commercial law. This is due to their size, the organizational form and the lack of reference to the capital market. Since the annual balance sheet is often created with the aim of tax directives, there is only limited adequate reflection on the business profitability of the organization. A detailed internal cost accounting only exists in exceptional cases and cost monitoring is only carried out on the basis of historical data and not on a planned cost basis. This paper deals with a concrete practical question from the topic of controlling and the analysis of an existing company based on the organization's financial documents. On the basis of the results and statements available, the objective of this paper is to develop recommendations for action for the supervisory board and then to discuss and evaluate them accordingly.