Although there are many different types and methodologies, an accepted router to establish a financial control infrastructure within a company involves the following steps:

1. Analysis of the Initial Situation: The first step is to conduct an exhaustive, reliable and detailed analysis of the financial situation of the firm in terms of cash, profitability, sales, etc.

2. Preparation of Forecasts and Simulations: On the basis of the initial situation analyzed above and the establishment of a set of parameters or indicators, a set of forecasts and simulations of different contexts and scenarios can be prepared. These simulations are immeasurably helpful in making appropriate decisions on such crucial aspects as investments, profitability, changes in production systems, etc.

3. Detection of Deviations in the Basic Financial Statements: The basic financial statements are balance sheet, the profit and loss account and the cash flow statement. The analyses and tests to determine the deviations from the budgeted figures are fundamental part of financial control, since they permit problems, errors and deviations from the ideal situation or initial objectives to be detected early.

4. Correction of Deviations: Financial control would have very little practical use if the proper decisions relating to corrective actions were not taken to get the company accounts on theright track as previously established in the organization’s general objectives.