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MAKE A GOOD BUDGET
A perfect start is already half way to succeed
A successful investment is always started with a successful planning. ...
A budget is made as a financial plan for a short term, expressed mainly in financial terms. The budget process is an important step of the business plans. ... Then, when corporate strategy is solid, managers determine the measures that will support those strategies and make sure that each one is easy for employees to understand, is achievable, is capable of being automated and is complementary to the other measures. Finally, when the measures are in place, executives build the budget around them.
The budget is one of the most important communication devices within an organization intimately related to the process of organization control. ... Thirdly, the budget identifies the short-term problems that could happen, in order to avoid it as much possible as managers can do. Fourthly, budget can help to coordinate the various section of the business. ... Finally, budget can provide a basis for a system control. ...
There are usually 6 stages in the budget setting process .
Firstly, there should be a communication of the objectives or general budgeting guidelines to the people responsible for preparing the budget. The short-term budget is working for the long-term plan. ... Last but not least, they need to understand what is their job in this budget setting process . A good budget should be made by from the top of the company- CEO and the senior managers to the bottom of the company- unit managers. ... "It makes the budget more achievable because theyre the ones who have the frontline view of the resources required to get the job done," says Kenneth A. ...
Thirdly, the company should prepare the operational budgets that usually are sales budget, production budget and capital budget.
Approximate Word count = 1468
Approximate Pages = 5.9
(250 words per page double spaced)
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