...Manage budgets and financial plans Assessment activity 1 1. Accurate records management is the first important task in the process of sound financial management or any small business operator. Accurate and regular financial information allows you to monitor the success or failure of a business and provides them with information to evaluate the consequences of their financial decisions. To be successful it is essential that you know the precise financial condition of your business. Accurate and regular financial information allows you to monitor the success or failure of your business and provides you with information to evaluate the consequences of your financial decisions. Regularly monitoring your business activities will help you operate more efficiently control your cash flow and increase your profitability. Solid information about your business depends completely accurate and timely record keeping practices. Accurate financial records will allow you to •identify your income and expenses to create a profit and loss statement •identify your business assets and liabilities to create a balance sheet •identify the timing of income and expenses to create a cash flow forecast •compare your business operations with industry benchmarks * prepare accurate business activity statements and tax returns so you don’t over or underpay your taxes 3. * identify the data that needs to be collected * identify the appropriate source of data * ensure currency, reliability...
Words: 1552 - Pages: 7
...33199 Subject: IMPLEMENTATION OF BUDGET STABILIZATION PLAN TO REDUCE FIU COSTS This letter is to inform all students, staff, administrators, and faculty members of the measures taken to overcome difficulties with the current budget. Despite to our efforts in reducing FIU financial costs, our revenues decreased by 20% compared to last year. Based on close analysis of our budget situation, we are not receiving enough funds from the state, we are spending more than our budget allows, and our tuition costs are lower than other similar educational institutions. We decided to create a strategy for the fiscal year 2016 to stabilize the budget situation. This strategy encapsulates five plans; the first two will be implemented on the summer 2015 while the remaining three plans will be applied starting January 2016. The strategy context will be as follows: * Increase tuition cost and fees by 6.5% to adjust inflation. * Frozen salaries for both faculty and staff for the next eighteen months. * Reducing spending for the fiscal year 2015 by 12%. * Request financial assistance from nonprofit organizations and the government. * Increase endowment by 10% for the fiscal year 2015 and an additional 15% for the following year. We hope that with these difficult actions our budget can be under control in the next two years while preserving the quality and high level of education that we are known for. By balancing our budget we will be able to improve our programs...
Words: 323 - Pages: 2
...Event Planning Budget Calculator Any Occasion Party Rental 5714 Bissonnet Houston, Tx 77081 www.anyoccasionpartyrental.com Use the estimator worksheet to set an estimated and actual budget for your event. Not all categories will be used for all events, utilize the sections that apply to your event and goals. If you have any questions or need help with your budget give us a call. 713.662.9724 EVENT: Estimated LOCATION Rental Fee Permits/ License Labor Other Actual TOTAL EVENT BUDGET: $ FOOD & BEVERAGE Food Beverages Bartender Fee(s) Equipment Labor Volunteers Service Charge Delivery Charge Misc. Charges Total FOOD & BEVERAGE PERSONNEL/ STAFF Event Coordinator Designer Show/ Event Staff Host(s)/ Hostess(es) Registration Consultants Public Relations Additional Staff Overtime Security Event Photographer Event Videographer Volunteers Other Set-up/Break-down Crew Total PERSONNEL/ STAFF Estimated Actual Estimated EMERGENCY CONSIDERATIONS Estimated Actual Total Estimated Actual RENTALS Tables Chairs Linens/ Napkins/ Chair Covers Glassware China Utensils Pipe & Drape Carpeting/ Flooring Staging (Skirting/ Stairs) Risers Dance Floor Tents/ Canopies Stanchions/ Ropes Props Furniture Labor Lighting Delivery Charge Other Total RENTALS ENTERTAINMENT Music Talent Speaker's Fee(s) Labor Other Total ENTERTAINMENT Estimated Actual Actual Medical/ Ambulance Canopies/ Tents/ Coverings Rain Plan Cost Other Total EMERGENCY CONSIDERATIONS Estimated DÉCOR SUPPLIES...
Words: 359 - Pages: 2
...Rhonda Moore According to Merriam-Webster dictionary, a budget can be defined as “the amount of money that is available for, required for, or assigned to a particular purpose”. Many people think of budgeting as something to do when they're short on cash. College students might turn to a budget to figure out how to make due with their high expenses and limited incomes. Two purposes for budgets are planning and control. Planning is a way of constructing the budget to meet the pre determined goal and, it also controls the feedback system to ensure proper execution of the plan. The advantages of budgeting are communication of management plan in the organization, provides guidelines for managers to think and plan for future, allocate resources, uncover bottle necks, co-ordinate activities for entire organization and provide benchmark for evaluation of future performance. Typically budgets can be prepared annually, and they can represent a company’s plan in specific, quantitative terms. A budget can help companies plan for the future. So companies can also take advantage of a budget by shaping the well-organized line for making money and increasing assets. “A budget may span any period of time. It may be short-term (one year or less, which is usually the case), intermediate (two to three years), or long-term (three years or more). Short-term budgets provide greater detail and specifics. Intermediate budgets examine the projects the company currently is undertaking and...
Words: 557 - Pages: 3
...Question 2 A budget is defined as a plan of operations based on a given estimate of expected income and expense in the future. As such, it is thought of as an action plan, outlining an organization's financial and operational goals. The budget expresses the quantitative arrangement of the entity's management, in terms of allocating the business resources, performance evaluation, and formulating prospective plans. Businesses alike hold this as an annual undertaking, putting into account the company's past year's budget and subsequently previewing projections for the next couple of years (however often occurring short-term, in about a year or less.) Budgets provide control over the instantaneous environment, help to master the financial aspects of the job and department, while at the same time administering solutions to problems before they occur. They focus on the importance of assessing alternative actions before decisions are actually implemented. Budgeting serves as a means of systematically planning and control. This will require a realistic financial documentation of the company's goals and performance objectives. Upon formulation, the analysis provides adequate development throughout the fiscal year. Consequently, monthly performance reports compare budgeted results against actual stats. The management then examine these and set out to take necessary corrective actions against significant variances. This is known in the accounting world as budgetary control. Also, allowing...
Words: 1014 - Pages: 5
...Supply Budget Cranston INF 336 Project Procurement Management (BQ01208A) Instructor: Kurt Earnhart 9/21/2012 A wide-ranging budget is serious to organizational success. However, the importance of the material supply budget cannot be overlooked. Established after the predicting of supply needs and resourcing has been completed, the supply budget defines how the business can meet its upcoming goals and targets and do so in cost-efficient and cost-effective ways. Separated into 4 distinct budgets, the materials, MRO, Capital and administrative/operating budget, the supply budget offers the business the means to meet its goals and objectives. * The Materials (operations) purchase budget, is based on the group’s forecasted operations, sales and plans classifies cash flow labels and problems well in advance. Because of this task, the materials (operations) purchase budget separates problems and gives the organization ways to avoid predicament. * The MRO Budget, which normally covers a purchase plan over 12 month periods, outlines budgetary provisions for maintenance, repair and operating supplies. Due to the intricacy of the MRO budget and the line items it contains, the MRO budget is really thought-provoking. For clear reasons, it might be impossible to forecast some repairs. * The Capital Budget fine points the money outflows based on the strategic plans of product lines and production needs. Because of this, some companies may plan the wealth outflows for one...
Words: 438 - Pages: 2
...1. What is your evaluation of each of the three businesses? What is your evaluation of the managers who run them? French Division Units ('000) Profit Plan (Master Budget) Profit before Interest and Taxes = 1027 Flexible Budget Profit before Interest and Taxes = 2,002 But Actual Profit earned = 1242 which is 760 less than profit anticipated in flexible budget. Increase in the profits above the actual budget can be attributed to 20% increase in sales in 2009. Although Jean’s profits were above the actual budget, French Division’s earnings were much lower than what it could have been, had they budgeted for the actual volume of sales that they ended up selling. We can partly attribute this decrease in earnings to the fact that the French division had to sell a certain volume of its products to the Spanish region at a lower contribution margin. Also, Jean had invested a lot of time in managing the expansion into west coast of France, cultivating relationships with vendors and suppliers and working on distribution channels. We agree with Jacques that they would have to wait for some years to receive the full benefits from this investment. But had Jean incorporated this wait in his budgeted profit plan, he would have been able to achieve a realistic sales objective. Besides, Jean should focus more on sales drop in traditional regions of French Market and maintaining relationships with distributors in the east coast as it was hurting their core business. Focusing...
Words: 1018 - Pages: 5
...agree the statement "Budgeting is a key component in management short and long term planning.". A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. It means budget is very particular plan for a company so that a company can actually know about the financial problem. In business, budgets help you determine how much money you have and how you will use it, and help you decide whether you have enough money to achieve your financial goals. As part of a business plan, a budget can help convince a loan officer that you know your business and have anticipated its needs. Budget is not like target. Target can leading a company to know what they actually needs to do. But budget can help a company to do it right. It can help a company on financial and strategy. A company's budget is a bit more involved. Most companies will start with a master, or static, budget. A static budget is a budget with numbers based on planned outputs and inputs for each of the firm's divisions. It's the first part of budgeting, which determines how much a company has and how much it will spend. These are projected amounts and the company expects to stay within these limits. To figure out the numbers, mangers make use of economic forecasting methods to determine a realistic static budget. In order to make the most effective use of your budgets, you will want to establish reporting devices. These will include periodic reports and reviews...
Words: 338 - Pages: 2
... It’s a way for upper management to communicate its plans and intentions to the entire company. The budget is their plan for success. According to Noreen, Brewer, and Garrison (2011) it is a quantitative plan for acquiring and using resources over a specified time period. The budget process can seem like a tedious exercise for some, as it involves and affects all areas of the company, but in the end it enables a company to plan how it will achieve revenue goals and control costs. In the simplest of terms the budget explains how much the company should be spending to produce a predetermined about amount of product which will yield a desired profit. Through the budgeting process and the controlling of costs many company’s like American Airlines, are able to keep their costs at a minimum and profits as high as possible. A company’s master budget is actually made up of a collection of smaller budgets that detail the company’s sales, production and financial goals. These smaller budgets consist of a sales budget, a production budget or an inventory of merchandise purchases budget, a direct materials budget, a direct labor budget, a manufacturing overhead budget, an ending finished goods inventory budget, a selling and administrative expense budget, and a cash budget. The information obtained from these budgets come together to make up the budgeted income statement and the budgeted balance sheet. The sales budget shows the expected sales for the period. Noreen et all...
Words: 1935 - Pages: 8
...| | |Assignment Cover Sheet | |Lecturer’s Comments Form | |SECTION A: TO BE COMPLETED BY STUDENT | |This assignment cover sheet needs to be included with each assignment. Please complete all details clearly. | |If you are submitting your assignment on paper, please staple this sheet to the front of each assignment. | |If you are submitting your assignment online, please ensure this cover sheet is included in front your assignment. | |Please check your course information booklet for assignment submission deadline and information. | |Family Name |Lim |Given Names |Glenda | |Program/Intake |AFM7 ...
Words: 462 - Pages: 2
...Planning I agree the statement "Budgeting is a key component in management short and long term planning." Budgeting could let us have a well plan list of our upcoming event’s expenses as well as our current and financial plan. By planning our budget we could also have a better view of our current and future’s expenses cum revenues. Having a budgeting plan company would also be able to identify out if there is any problem occur with the company’s financial states. Limits, expenses limits it’s a definitely need in companies which budgeting helps to show our current assets, cash and how much amount does the company may afford to expend or do investment in their business. Having this budget planning companies will be able to keep track and stay within their calculated budget’s limits. Companies wouldn’t overspend with the list of guidelines; we could use budgets as a guide. In business, budgets help you determine how much money you have and how you will use it, and help you decide whether you have enough money to achieve your financial goals. As part of a business plan, a budget can help convince a loan officer that you know your business and have anticipated its needs. Budgeting may possibly be an advantage for a company to have, as it can help a company on financial and its strategy. In order to make the most effective use of your budgets, you will want to establish reporting devices. These will include periodic reports and reviews on both efforts and accomplishments. It is...
Words: 319 - Pages: 2
...FINANCIAL TECHNIQUES USED IN THIS STUDY Budget and budgeting techniques In order to properly plan and set goals, several different budgets must be created. This article discusses some of the more common budgets used by businesses. SALES BUDGET: The sales budget is an estimate of future sales. It is used to create company sales goals. PRODUCTION BUDGET: Product oriented companies create a production budget. It is an estimate of the number of units that must be manufactured in order to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, such as labour, material, and other expenses. CASH FLOW BUDGET: The cash flow budget is a prediction of future cash receipts and expenditures for a particular period. It usually covers a period in the short-term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. MARKETING BUDGET: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service. PROJECT BUDGET: The project budget is a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. CAPITAL BUDGET: The capital budget is a prediction of company needs in regard...
Words: 305 - Pages: 2
...performance. The current appraisal and reward system is increasing this isolated and non-cooperative working of the different functional units. ▪ The sales department to improve their sales want to have high finished goods inventory ▪ The production department wants to have high inventory of raw material to have uninterrupted production schedule. They are not interested in implementation of Just-in-time inventory methods to reduce the overall cost. ▪ The current control and reporting system does not provide enough good quality data to guide management decision process. For example, no record for work in process is kept in the company. ▪ The accounts department is making the budget without getting any information from functional units. This way the budgets are not realistic and reflect only an accounting necessity rather than a decision making and control tool. ▪ The cash management system of the company is not good and company is facing the cash management problems. Validity and Reasonableness of Letsgo’s Sales Projections: Table-1: Actual and Projected Sales Growth | |Sales |% Increase | |1992 |13,765 | | |1993 |14,880 |8.10% | |1994 |15,991 |7.47%...
Words: 2625 - Pages: 11
...Cost Accounting Tabitha Smith ACC 310 Christine Errico January 12, 2011 Cost Accounting What is cost accounting? Cost accounting as referred to as managerial accounting is a system of accounting used specifically by managers (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting measures, records and reports information about costs to help managers to form a well informed decisions for an organization (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting methods and their use, budgets including discipline, construction, and elements, and variance analysis are important aspects of cost accounting as a whole, which is an important tool for a successful organization. The main goal of cost accounting is to help managers to maximize value within their organization (Lanen, Anderson, & Maher, 2011, p. 3). One of the fundamental services of cost accounting is to provide information to the manager to guide them to make effective valuable decisions (Lanen, Anderson, & Maher, 2011, p. 3). An essential objective of cost accounting is to create an effective value chain (Lanen, Anderson, & Maher, 2011, p. 4). A value chain is a set of activities in which raw materials are converted into goods and services for consumers to purchase (Lanen, Anderson, & Maher, 2011, p. 4). An organization is responsible to coordinate with their vendors and suppliers along with their distributors and customers to accomplish their objective (Lanen, Anderson...
Words: 1684 - Pages: 7
...Discussion Budget, Savings, etc., what are the definitions of these terms? According to an article entitled “Financial Literacy to Everyone” at www.practicalmoneyskills.com, budgeting is plan for your future income and expenditures that you can use as a guideline for spending and saving. Budget came from the old French word “bougette” which means purse. It is practically, a plan and list of all planned expenses and revenue. It is a plan for borrowing, saving, and spending. So why Budget? An average student spends his allowance for books, student housing, tuition fee, and food. These are all expenses encountered not only by students but, in general, most of the people in the world. There are generally three types of expenses usually faced by students, the Academic, Living, and Personal Expenditures or Costs. Academic Costs are usually what eats up the total budget of students. It contains the different expenses that are required in able to carry out a student’s academic life. It varies from tuition fees until the very miniscule expenses utilized for photocopying hand-outs from your professor. Living Costs, on the other hand, are expenses that a student need for day to day living however, indirectly related to academics. These include your expenses in utilities (e.g. electricity, water, and internet bills), personal care expenses (shampoo, soap, etc.), and clothing and food expenses. Lastly, Personal Costs are expenditures that are unique yet still a part of a student’s budget. This...
Words: 1203 - Pages: 5
