Many enterprises including large companies which have separate divisions or constituent companies and small enterprises often have to solve problems the origin of which is connected with insufficient effectively of business administration.
More often than not accounting reports don’t give full and truthful information about the financial state of the enterprise. Because of this different questions connected with the reflection of real account indexes, with economic expediency of expenditure and as a result with arrival at important administrative decisions.
Due diligence will allow:
– to estimate th? state of business structure as a total complex;
– to estimate the system of document flow;
– to estimate the truthfulness of the indexes reflected in the review;
– to carry out the legal evaluation of business;
– to reveal strong and weak sides of the enterprise;
– to introduce the effective administration of the company’s financial flows;
– to decrease risks of arrival at wrong decisions connected with the use of uncertain or outdated information.
On the basis of the results of Due Diligence the administration of the company can really estimate the potential of the enterprise as a whole, of its distinct structures. Also this will help to decrease risks of mistakes and to increase the commercial viability of business. As a result it will be much easy for the head of the enterprise to take expert and intelligent decisions in business administration.
It is important to note that Due Diligence of the enterprise allows defining if the worked out system of management accounts which is used in the enterprise corresponds to the goals of the company and market demands.
The absence of the system of management account or its ignorant organization put at threat not only the affluence of enterprise but just the existence of the whole company.
Due Diligence is carried out in order to solve different problems in the sphere of administration of both finance and enterprise. As a result of it the head of the company will get the report with all revealed weak points and practical recommendations of their avoidance.
If Due diligence reveal the insufficiency in the work of the system of management account then it is necessary to set such kind of this system that will maximally correspond to the aims the enterprise and to the demands existing in the market.
Illustrative business plan samples
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