Effects of Implementing (Financial) Controlling on Business Performances of Small and Medium-Sized Enterprises in the Federal State of Bavaria

The goal of controlling as company’s function is to provide (through analysis, controls and recommendations on actions to be taken) company’s long-term economic stability, profitability, and competitiveness. Bearing in mind the aims of controlling and its effect on company’s business activities, the main research hypothesis was postulated for the research, stating that the introduction and implementation of financial controlling results in better performance in business activities of small and medium sized enterprises in the Federal State of Bavaria. In order to confirm the main research hypothesis, an empirical research consisted of two parts, primary and secondary, was conducted on the territory of this federal state. The realization of the primary research included the previously designed and analyzed questionnaire. The survey was conducted on the territory of the Federal State of Bavaria and it focused on small and medium sized companies in various sectors. The second, empirical part of the research included the analysis of financial reports taken from the Federal Gazette using financial indicators for 15 companies in the transport sector for three successive accounting periods (prior to, during, and after the introduction of controlling function). Both the results of the survey and the results of the financial analysis showed that the implementation of financial controlling in organizational structures of the companies surveyed had a significant effect on company`s business performances. In addition, the participants believed that financial controlling has a very important role in realizing company’s goals and that it positively influences internal and external transparency of a company. Keywords: Financial Controlling, Small and Medium-sized Enterprises (SMEs), Federal State of Bavaria Journal: Eurasian Journal of Business and Management