These are objectives that only focus on the Finance side of a business. Examples of these are:

• Survival,
• Decreasing break-even level
• Maximising profit.

The main use of these objectives is to measure the performance of a business against its previous years as well as the competition.

Factors to consider when setting objectives:

• The legal status and size of the business
• Other objectives of the business
• The state of the economy
• The businesses budget
• The level of competition in the market
• The government of the day
• Interest rates
• Any changes to laws and legislation

Clear financial Objectives allow a business/Stakeholder to:

• Have targets to aim for
• Assess the progress of the business
• Each department knows the budget they have for achieving their goals
• Department objectives can be planned around the information
• Assess the business in terms of its liquidity
• Monitor and assess the likely