●
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
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
