Profit Blog

Jarmo Manninen & Muutosdraiveri Oy


What does the prerequisites for financial management of companies mean?

21. tammikuuta 2025

The prerequisites for financial management of companies are in place when all of the following things are in place in companies:

1. When setting the company's goals, planning the measures required to implement them, and monitoring the results are based on the use of the operational income statement that I developed, then it is the right tool for the company's operational management. On the other hand, the external accounting income statement is not a sufficient tool for managing the company's operational activities to achieve the company's performance goals.

2. When the company knows how well or poorly the products and services sold by the company are profitable.

3. When performance goals have been defined for all resources invested in by the company, i.e. people and machines, and their realization is managed in the right way.

4. When operational efficiency goals have been defined for all resources invested in by the company, i.e. people and machines, and their realization is managed in the right way.

5. When capacity utilization goals have been defined for all resources invested in by the company, i.e. people and machines, and their realization is managed in the right way.

6. When the company knows how to use the information systems required depending on the company's business in the right way. In practice, the company must have at least an electronic financial management information system in use in a correct and sufficient way and, depending on the company's business, also, for example, an enterprise resource planning information system, a materials management information system, a customer management information system (CRM), etc., correctly integrated. In addition, the company must know how to utilize the possibilities of modern reporting systems, i.e., the possibilities of BI systems (Business Intelligence), correctly integrated with the company's other information systems.

7. When the company knows the root causes of the deviations of the company's results from the company's target results, in other words, all the requirements of points 1. - 6. above have been implemented.


I encourage you to share this blog post of mine on social media. If you have any suggestions for the topics of the next blog posts, I will gladly accept them.

I hope that you were interested in this matter and that you can continue to be involved.


I have written four books on creating the conditions for the company's financial management, and they are available in well-stocked bookstores and online bookstores in Finland, for example from BoD (Books On Demand) at:










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