Investment controlling

What is investment controlling?

Investment controlling is the planning, management and monitoring of a company’s investments. It includes analysis of investment needs, planning of allocations, control of capital expenditures, and evaluation of results.

Investment controlling is an essential part of financial controlling. The aim of investment controlling is to ensure that the company’s investments are in line with its strategic objectives and are used effectively and efficiently.

The tasks of investment controlling usually include the following areas:

Analysis of investment needs: This step analyzes which investments are necessary for the company to achieve its strategic goals. Various factors are taken into account, such as the competitive situation, technological development or the company’s financial situation.

Allocation planning: This step determines which funds are available to finance the planned investments. This takes into account which funds are already budgeted for other purposes and which funds need to be raised through loans or other financing instruments.

Control of capital expenditures: In this step, it is monitored whether the actual expenditures for the investments correspond to the planned expenditures. When deviations occur, they are analyzed to determine whether they are justified and what consequences they have.

Evaluation of the results: This step verifies whether the results achieved correspond to the expected results. Both financial and non-financial criteria are taken into account. When deviations occur, they are analyzed to determine whether and why they occurred and what measures need to be taken to avoid them in the future.