Budget is key process for the financial team that helps to organize financial activities and manage company’s requirements that can be resources, material, tools, equipment, machinery & fix assets that possible to manufacturing activities are conduct for business. In the business budget allocation of the amount as per previous experiences, expense records & current financial situation is pivot factors that helps to making a business budget. Business Budget Format you can as below:
How to prepare budget?
Business budget is prepared on base on:
- Current financial situation
- Previous Year Cash flow ( in terms of banks & cash both transitions)
- New projects & impotency
- Sales Growth – Market Planning
- Employee Motivation / Training
- Continual Improvement
If we want to understand business budget, we have simple example for home budget, with limited income we are arranging all the necessary requirements for the home, how we doing all? Yes first are concentrate on primary requirements & than after all in priorities, same are conducting in business as per amount on hand with business are allocating amount among all the requirements for the run business.
In the business Cash flow is main part that need to focus on previous expenses, mostly business are consider cash flow ( Last year) in center of the business budget and about 1.5% to 3.00 % extra amount add to understand condition of the next years rates raise. In case of the rates of the material are drastically increase in during the year, might possible some other material rates are same as previous years that can balance of the last year will be maintain in this case. Here as below you can see the picture that reference format for the cash flow:
For the company growth, some projects are needed to establish and improvement is very necessary for the customer satisfaction & controlling on cost, see example below:
The company having a boiler for any process which is use woods for fire that is creating pollution and very expensive for the business budget, hence PNG / GAS boilers can reduce costing in that case immediately whole money is not covered but currently for the project need to establish for the future benefit.
Now days heavy competitions in the market that all the companies are making advertisements, foreign visits, making broaches, cards, making event etc.. for the develop good market for its product. The part of the marketing in the business is very important to growing business fast hence the financial peoples never ignore requirements of the marketing & its concern requirements, in the business budget biggest percentage are allocate behind marketing of the product & its necessary too.
Employee motivations & continual improvements are also good part that helps to improvement in production, develop in quality product by chip the cost that is very important, so business are also focus on that part which is helps to reduction in costs.
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