Budget notes that contain all the assumptions something that is believed to be

Budget notes that contain all the assumptions

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Budget notes that contain all the assumptions (something that is believed to be true but no proof) used in the budgets should accompany/be with the master budget or be made available as a separate document. Where possible, the notes should justify/prove the basis on which the estimates/guesses were made. Overheads (non-direct expenses) will be apportioned/spread across the cost centres equally. Exceptions/not a general rule need to be negotiated/discussed with relevant/concerned authorities. All expenses and income will be spread equally throughout the year unless otherwise required by business needs or business environment. The financial cycle (ups and downs of income and expenses) for budgeting purposes will be yearly ending 30 June. Reporting requirements Software applications to be used in reporting: Environment (i.e computers and systems available) – MS Windows. Accounting information system – MYOB AccountRight. Data analysis – Microsoft Excel 2007. Actual/real results will be produced monthly by the MYOB accounting system. Actual variances (real changes/differences) to budget will be produced using Excel with a report prepared for senior management for any important differences (i.e significant variances). Financial delegations Each manager is responsible for achieving the revenue budgets (sales income) agreed to in the budget committee. 3 Cash flow budget - An estimation of the cash inflows and outflows for a business or individual for a specific period of time 4 Profit budget - A planned financial forecast for the net income of a business. 5 Master budget - The master budget is a collection of all smaller budgets used within a company. © 2015 Innovation and Business Industry Skills Council Ltd/Modified 14Sep15 1 st edition version: 2 Page 9 of 10
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Assessment Task 3BSBFIM501 Manage budgets and financial plans Each manager is responsible to approve, by signing the necessary paperwork, all expenditures that fall within their area of responsibility. Expenditures must be within the budget guidelines for the individual departments. Format for budgets and reports All budgets must include the: name of the person who prepared it cost centre (if applicable) name of the budget/report, i.e. sales, expenses, CAPEX, cash flow, budget variance report period of the budget. © 2015 Innovation and Business Industry Skills Council Ltd/Modified 14Sep15 1 st edition version: 2 Page 10 of 10
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