Any organization, whether profit or non-profit, private or cooperative, is administrating its activities in order to know about ‘income and expenses’.

This administrative cycle consists of:

1. Analysis of the present situation,
2. Preparing the budget
3. Monthly, quarterly and Annual Report and
4. The analysis of budget versus realisation.

In scheme  this administrative cycle looks like:
 

 
In phase 1, the starting point, the present situation of your business, concerning the areas which will be investigated, is analysed. Next step, phase 2, is to develop insight in the business results in specific fields within your organization, aiming to develop opportunities to optimize your organization. The suggestions are worked out into business cases: is it financially worthwhile to implement the opportunity. Phase 3 is the implementation phase. After implementation a report and control system / control framework (phase 4) should monitor the business results and in phase 5 analysis takes place whether goals have been reached and / or what could be improved.

Economic wise deals with the phases of analysing the present situation, building the budget, preparing reports and making the analysis afterwards. Economic wise is data-oriented – it takes your business results, financial reporting and information system as starting point.

Principles

• Improved analysis of existing data

• Result and action oriented reporting

• To measure = to know = to do