Hi Team. What are the key points to be added in Budgeting?
From India, Ernakulam
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3From India, Ernakulam
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Dear Colleague,
Budgeting is a beautiful exercise that will cover all your activities, transactions, and be a guiding tool for you for the stipulated financial year/s. There are various key factors to be added in budgeting:
1. The Budget Vs. Actuals of the previous 3 reference years for each of the Heads of account.
2. The projection for the Current FY for each corresponding Head of account.
3. The numbers proposed for the next FY for each of the Head of account.
4. What are the assumptions under which the current numbers and projected numbers of next year are taken to be elaborated on.
5. What are the Budgeting principles adopted to be briefed at the beginning itself in the Budget.
6. Any new transactions, initiatives, products, processes, legal requirements in the budget year are to be figured and given due importance.
7. The Fixed and Variable, Capex, Functional Budgets are all to have linkage and to synchronize with the overall organizational budget.
8. All those factors that are proposed newly are to be taken on Zero Based.
9. Generally, for the proposed budget year, a "Zero Based Budget" approach will be good and accurate.
10. Add any contingency factors like sudden or unexpected aspects that might arise and give due importance for that.
Overall, Budgeting is a very useful exercise as well as a tool that you may do with a lot of passion. Every month create MIS and BP Vs. Actuals comparison and Variance Report as part of Budget Monitoring and Control.
From India, Chennai
Acknowledge(0)Amend(0)
Budgeting is a beautiful exercise that will cover all your activities, transactions, and be a guiding tool for you for the stipulated financial year/s. There are various key factors to be added in budgeting:
1. The Budget Vs. Actuals of the previous 3 reference years for each of the Heads of account.
2. The projection for the Current FY for each corresponding Head of account.
3. The numbers proposed for the next FY for each of the Head of account.
4. What are the assumptions under which the current numbers and projected numbers of next year are taken to be elaborated on.
5. What are the Budgeting principles adopted to be briefed at the beginning itself in the Budget.
6. Any new transactions, initiatives, products, processes, legal requirements in the budget year are to be figured and given due importance.
7. The Fixed and Variable, Capex, Functional Budgets are all to have linkage and to synchronize with the overall organizational budget.
8. All those factors that are proposed newly are to be taken on Zero Based.
9. Generally, for the proposed budget year, a "Zero Based Budget" approach will be good and accurate.
10. Add any contingency factors like sudden or unexpected aspects that might arise and give due importance for that.
Overall, Budgeting is a very useful exercise as well as a tool that you may do with a lot of passion. Every month create MIS and BP Vs. Actuals comparison and Variance Report as part of Budget Monitoring and Control.
From India, Chennai
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Capital Budgeting Financial Appraisal of Investment Project.ppt