The paper "Managing Budgets Assessment" is a great example of a Finance & Accounting assignment. A budget is a specific financial document that is meant to record both actual and projected revenues as well as expenditures that will be incurred over a certain period of time for either an individual or an entire organization. In essence, it is a quantitative expression of a given individual or organizational-based plan that is meant to cover a certain amount of time. Budgetary Control It is an approach that is employed by an individual or organisation to compare actual outcomes and the budget at hand.
Cases of possible variances in the comparison of actual outcome and budget are deemed to be the fundamental responsibility of notable individuals that are tasked with the duty of exercising imminent control actions or in other cases, expected to review the original budgets. Factors Taken Into Consideration before Developing a Sales Budget The following factors should be taken into consideration before an organisation is allowed to formulate a sales budget. First, it is important to review the sales results of the previous operational year.
It is crucial to review the organisation’ s sales for the past financial year and thereafter utilise them for establishing the manner for which sales will grow in the following year. Secondly, it will be important to forecast the industry as well as the immediate competitive operational environment of a company. The sales budget cannot be based on the sales projections but it must also reflect on the reality of the existing and expected future economic outcomes as well as the competitive threats that might be faced by the company in future operations.
Third, it is crucial to formulate strategies as well as make a clear projection of the marketing costs involved. In this case, strategic decisions are deemed to be the appropriate actions that one should assume whenever embarking on a mission of realising the sales objectives that were set initially. These strategies include; advertising and promotional marketing campaigns, distribution channels as well as improving staff personnel. Fourth, it will also be important to develop distinctive revenue models. In fact, the accuracy of an organisational sales budget will be entirely focused on the effectiveness of revenue models.