Monitoring and Evaluations

Monitoring involves overseeing the overall position and performance of a business including all key business functions.

Monitoring requires good accounting procedures using the three financial statements to ensure that the owner is accurately informed as to how the business is performing (Profit? Loss?).

Monitoring is the process of measuring actual performance against planned performance. It involves comparing the forecasts made for revenue, sales levels, expenses and overall profit, to the firm’s actual performance.

Evaluating involves judgement. The business owner must then judge the firm’s performance (SWOT) against forecasts. 

Through identifying areas of weakness, the business owner can then control these aspects of the business. 

Controlling involves making changes (corrective measures) to the firm to improve performance on the basis of the evaluations.