Essays on Business financial budget management Research Paper

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Business financial budget management Executive summary Bray’s Collage is an educational organization that has been in the educational sector for over ten years, providing quality education to students of diverse groups. It is a national provider for training services, whose main services lies in business courses that help students to attain university entry aggregate requirement. These courses also help students, particularly once they have joined the university, to have ease of dealing with the business courses, Allen and Julia, (2001). Bray collage has upgraded it is services of operation, to the level of offering short courses to staff members of various industries to upgrade their skills and meet the current demands of employees in the work sector industry.

The work industry has proved more competitive, that is why Bray Collage has risen a step ahead to meet the demand of the people around Bray Collage. Our collage is strategically located; near an international airport. This gives the collage a due advantage for easy marketing of it is services internationally and domestically. This is particularly real as figures show that the ratio of international to local students is 1: 4 (Allen and Julia, 2001, p.

120). Background of information Bray Collage currently operates within a budget of $ 100, 000, which include the expenses on management and administration. There also other costs that include: recurrent expenditure on capital expenditures, the funding of programs, which may include transfer payment, and the expenditures on unforeseen contingencies. The collage operates entirely from the students contributions to sustain all this programs mentioned here-above. However, we also receive grants from the well wishers who came in; by identifying the great contribution the institution has rendered to the locals and international community’s (Ronald, 2003, p.

90). Our services are gradually increasing, that means that the collage facilities should be upgraded and expanded. Also, due to the collage’s strategy location, the number of students demanding the collage services is tremendous. This has made the collage to increase in it recurrent expenditure by 100% (Ronald, 2003, p. 90). It is for this reason that I give my advice on this report advising the institution on how to prepare a financial budget for the fiscal year ending 31st December, 2011.

When the budget is prepared, the following personnel are of a great help: i. Procurement officers These are those persons who will be authorized by the college to place the state under financial obligation by ensuring that expenditure is well allocated to specific budget entries. They are well informed of the products in the market thus advising those preparing the budget how to allocate the right costs to the relevant programs (Layton and Timothy. 2007). ii. Accountants they will be responsible for the payments and recording of these payments in accounts.

It is through this accounts that the current costs are based by considering the previous prepared accounts expenses. The accountants provide some information on expected profits. The profits are used to project future profits for an organization. iii. Comptrollers They will ensure that the right procedures are followed and funds are available. At the same time they will ensure that there are valid approvals before payments are made to suppliers. These personnel should follow the following procedure in the preparation of this budget. As this budget will be prepared, trade-offs and prioritization among programs must be made to ensure that the budget fits the institution’s priorities.

That is, those programs that need agent attention should be given first priority together with those which brings high returns like expansion of more rooms of studying. Secondly, cost-effective variants must be selected. Before the implementation of the program or the allocation of fund to a certain program, cost effective analysis should be put into consideration. Programs that are more costly should be put aside and programs that are less costly within high returns given first priority (Ronald, 2003, p.

90). Finally the means of increasing operational of the budget must be put into consideration. The budget must be flexible, this will allow changes that may arise and allocation for contingencies that may result in future spending requirements to allow any changes that may arise (Peter and Thomas, 2001). On the other hand, the institution should put into consideration some dimensions and this include; setting up the fiscal targets and the level of expenditures compatible with the budget targets, formulating expenditure policies, allocating resources in conformity with both policies and budget targets and addressing operational efficiency and performance issues (Layton and Timothy, 2007).

The following is the suggested financial budget projections:     Budget for Bray Collage                                         Fiscal Year Ending December 31, 2011                                                                         Estimated                    Total Revenue                                                                              Well wishers $ 50,000 Student’s tuition fee $ 90,000 $140,000 Expenses: Space and Equipment: $ 45,000 Rent                                                    $ 12,000                                             Utilities                                                $ 5,000                                              Total Space and Equipment              $ 62,000   Administration: Wages                                                  $ 30,000                                               Payroll Taxes                                       $   3,000                                               Business Taxes                                   $   1,000                                               Insurance                                            $      500                                              Office Supplies                                   $   1,500                                             Total Administration                                                            $ 36,000 Contingencies $ 10,000  Total Expenses $108,000 Once the budget has been prepared, the finance officer will communicate to the staff and the whole institution on the contents of the budget and how it will be implemented.

Since he might face some hostility from the members of staff, he has to look for the best strategy to pass over his information and this may include: Integrating the message.

He should connect the present targets with what is happening in the institution and the other modifications that employees are being affected by. He should keep it Succinct, that is, he should make sure that the message is not overcomplicated because keeping the message simple makes it more understandable. Being straightforward makes him not to be ambiguous about what he wants to convey. Honesty is really often the best policy to adopt. On the other hand, he should address the main target: Just as it is required for marketing your products externally, he needs to segment his audiences and target his message according to the requirements of each group of employees.

He should make it personal; this will help the employees to understand how they are affected personally and how the budget will benefit them. When people know exactly whats in it for them, they respond more effectively. Finally, he has to focus on being results-oriented. He should make an assessment of how effective his communications is and devise follow-up strategies according to the results. He should also incorporate his successful measures as a part of the overall strategies of presenting his budget (Layton and Timothy, 2007). Appendix Budget: a financial projection or plan of an institution’s or the governments at the way of raising income and how it purposes to spent it. Contingencies: those liabilities in a business organization that might arise abruptly and they need one to prepare before they arise. Utilities: payments made on what you spent most like electricity and water bills. Space: a place in an institution where students get either accommodation or reside. References Allen, Julia H.

(2001). Business Management: Financial projections. Boston Ronald L.

(2003). Business Information Strategy: Implementation and Management. London. Layton, Timothy P. (2007). The Financial Budget Guide (Gold Edition Ed. ). London. Peter, Thomas R. (2001). Security Business Risk Analysis. Boca Raton, FL: Acerbic publications

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