Company Budget

Creating a company budget.

Instructions:

1. Use proper techniques for organization, staffing and direction of the company's operations. It is essential that the management overseeing the budget not only create an effective budget plan, but also that management use proper observation, analytical and reporting techniques.

2. Look to the future and make assumptions regarding variables or situations that may affect the company's budget plan. This allows a proactive approach to be established if the economy sours or in case unforeseen events occur.

3. Set goals. The annual plan's foundation is established based on the goals set forth in the company's budget plan. Company budget goals may include rate of return on investments, market share, establishing quality leadership and survival. Make predictions about the future outcome of the business. This is called forecasting.

4. Include a performance objective. This is yet another goal that requires action. A performance objective is a set goal to attain a certain performance level.

5. Integrate expenditures, asset requirements and estimated finances needed.

6. Coordinate by creating a detailed, organized budget plan structured and organized in a flow chart. This should organize the company's budget objectives.

7. Format the budget plan to show a budgeted balance sheet, including assets, liabilities and other financial information.

8. Document the progress of the budget, including all account payables, accrued expenses and other debts. A financial document should list account receivables as well.

9. Take control of the company budget plan. Because the budget is subject to change based on economic and unexpected circumstances, implement new strategies if necessary and monitor the financial performance of the budget by creating daily reports that show how well you are doing against the goals.

I think one of the most important functions on the administrator's role, is the way they handle the resoureces to accomplish the company goals.

The way they use the resources, how they distribuite them to each department, and most important, how they do to get each time more money from the original amount.

I believe thinking in the future is a key point to have success during a long period of time, so the budget is a good tool to have control on how to face different expenses in upcoming months. 

Title: How to Make a Company Budget Plan

Author: Shandell Williams

Date: 11/27/2011

Source: http://www.ehow.com/how_4465103_make-company-budget-plan.html

By Viviana Rodriguez Cespedes