분야
pptxOperating Budgets
Financial Budgets
Budgeting in Nonmanufacturing Companies
Budgeting Basics
Budgeting Basics
01. Budgeting Basics
1. Budgeting and accounting
A budget is a formal written statement of management몶s plans for a specified future time period, expressed in financial terms
Accounting information makes major contributions to the budgeting process
Companies can obtain historical data on revenue, costs, and expenses from the accounting records
01. Budgeting Basics
2. The benefits of Budgeting
Plan ahead and Formalize goals on a recurring basis
Definite objectives for evaluating performance at each level of responsibilities
Creating an early warning system for potential problem
The coordination of activities within the business
Greater management awareness of the overall operations and the impact on operations of external factors
Motivating personnel throughout the organization to meet planned objectives
3. Essentials and Period of Budgeting
01. Budgeting Basics
A sound organizational structure for effective budgeting
Research and analysis based budgets
Acceptance of all levels of managers
A budget can be prepared for any period of time
The most common budget period is 1 year
4. The Budgeting Process
01. Budgeting Basics
Step 1. Data colleting from each organizational unit of the company
Step 2. Developing within a sales forecast considering,
- general economic conditions
- industry trends
- market research studies
- anticipated advertising and promotion
- previous market share
- changes in prices
- technological developments
4. The Budgeting Process
01. Budgeting Basics
Step 3. Coordinating the preparation of the budget by a budget committee
[committee includes, the president, treasurer, controller, management personnel from the major areas of the company]
Step 4. Reviewing the budget, modified if needed, and reconciled
Step 5. Putting into the final form by the budget committee
Step 6. Approved, and then distributed
