The following processes should be followed for

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The following processes should be followed for effectively communicating the final budget and resource allocations: Each Department Head should understand their part of the budget and how it contributes to the overall business. They should be informed of any changes made from the draft budget and be provided with an explanation for the change or why something that was requested to be changed wasn’t. In addition to receiving the budget, the management team must be advised of their duties in regards to providing financial information and reporting. Deadlines for each reporting period should be created and passed on to managers with the final budget. Once the management team has received and understand the budget, it is at their discretion to decide whether this information should be shared with staff. All staff within a business should have some knowledge of the budget for their area, from managers through to operational staff, administration to financial staff. Staff should also be advised of the importance of budgetary control and meeting the budget each month. Organisations generally have no policies about budgetary non-compliance and how this is dealt with.
4/5/2020 Coassemble 5/6 ±². Indicate whether the following statements are true or false: Monitoring a budget could include provisions for the following processes: The budget should be compared to the actual accounting results on a monthly basis to ensure that the business is performing as expected. In medium to large businesses this may occur following monthly stocktakes in order to provide accurate data regarding each department for the monthly management meeting. Every revenue and expense item on the Profit and Loss Statement for every department should exceed the budget at all times. It is important to undertake further investigation into budget variances, whether they are over or under. Where there are variances it is essential to analyse the data and investigate the potential reasons for being over or under budget. If you do not realise that there are issues early enough, then you will not be able to adjust your strategies to compensate. ³´. Indicate whether the following statements relating to the format of a financial report are true or false: No matter how many or few reports included in the document, it is essential that the information provided is clear and concise and laid out in a logical manner. For small to medium size businesses financial reports can be handwritten on paper featuring the business logo. A cover page with the logo should be attached stating, for example, “Hotel Futura – Month End Reports – January 2014” . The next page should be a table of contents, which is usually followed by a written report by the General Manager and then the Financial Controller (in a large TH&E business). This would be followed by the Profit and Loss Statement, showing both the budget and the actual results.

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