Budgeting and Forecasting

Depending on the nature of the enterprise, whether profit or nonprofit there can be many specialized budgets to handle a particular need. For example: The revenue budget is designed to plan around the income derived from the activities of the firm. The expense budget is based on the expected costs associated with the production of services or products the company makes. The cash budget is developed to make sure the income and outgo of money will produce the cash needed in the day-to-day operations of the firm. A capital expenditures budget is one where hard assets like buildings, machinery, land, etc. are taken into account in the generation of funds to acquire and sustain such assets. The program budget is geared to the individual programs or goals the company has and takes into account the labor, overhead, financial and other items to make the particular program viable. A zero-based program does not use past derived benchmarks but rather starts out at the beginning or zero income/expenses and figures each step of fixed, variable and all other expenses and revenues as a brand new venture.

It has to accont debit and credit. Both must be equally

i dont know to all in you answer that improve me your answer

spot errors before the final B/S is done.

The system of collecting and processing transaction data and disseminating financial information to interested parties is known as the accounting information system. It includes each of the steps in the accounting cycle that you have studied in earlier chapters, the documents that provide evidence of the transactions and events, and the records, trial balances, work sheets, and financial statements that result. An accounting information system may be either manual or electronic.

To have an efficient and effective accounting information system (hereafter referred to simply as the accounting system), certain basic principles must be followed. These principles are:

1. Cost awareness. The system must be cost effective: the benefits obtained from the information disseminated must outweigh the cost of providing it. For example, the value of each accounting report should be at least equal to the cost of producing it.

2. Useful output. To be useful, information must be understandable, relevant,

reliable, timely, and accurate. Designers of accounting systems must consider

the needs and knowledge of various users so that the system's output (reports

and statements) will be useful to them. For example, sales managers

may need weekly reports of sales, and factory supervisors may need daily reports of production. Others with differing responsibilities (such as vice-presidents) may need such reports only monthly or quarterly.

3. Flexibility. The accounting system should be able to accommodate a variety

of users and changing information needs. The business environment changes

as a result of technological advances, organizational growth, increased competition,

government regulation, or changes in accounting principles, when

it does, the accounting system should be sufficiently flexible to meet the

resulting changes in the demands made upon it.

If the accounting system is cost effective, provides useful output, and has the

flexibility to meet future needs, it can provide a valuable service and make a

major contribution to both individual and organizational goals.

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so you make sure you don't spend all your money at once and not have any for later, just a guide line for what you should spend.

What is fiscal duty?

Cost Control - Taking Steps to ensure that the cost expenditure in the project is in line with what was planned during the planning phase. If the expenditure looks like exceeding the planned value, then steps are taken to reduce the cost to bring it back in line with the plan

Cost Reduction - Taking steps to reduce the amount of money spent on any activity or project

It is important to budget in order to keep your finances in order and keep some control over your spending.It also gives you the chance to see where all of your money goes and identify areas where you could save money.

to do so governments make up a budget,or plan for collecting and spending money

A planned budget is one that is structured and has been well thought out. An unplanned budget is one that pays bills and expenses as they come without a preset plan.

i must say accrued and provision is two different things,accrued is something paid to you but you can spend it,concerning provision is not the same.

the amount desired after all expenses are paid

A rolling budget system is one in which a budget is updated to add a new budget period once the most recent period has completed. Another term for this type of system is "continuous budgeting."

The flexible budget report can be used to evaluate performance in two areas: production control and cost control.

1. Allocate funds according to agreed priorities.

2. Discuss changes in income and expenditure priorities with appropriate colleagues prior to implementation.

3. Consult and inform all relevant personnel in relation to resource decisions.

4. Promote awareness of the importance of budget control.

5. Maintain detailed records of resource allocation in accordance with enterprise control systems.

to control the bank position financially

(actual time * standard rate) - (standard time * standard rate)

The actual rate is the total dollars divided by total hours or pieces. The actual formula is not dependant on any standard rate. The rate variance, however, cannot be determined without the standard rate. The rate variance is the difference between actual rate and standard rate.

The Small Business Administration has basic information on the profitibility on many types of businesses. If not, consult an experienced accountant that has a similar barber shop as a client.

Capital expenditures are included in fixed asset costs. Examples of capital expenditures are purchase costs, legal charges delivery charges, and installation charges. Revenue expenditures include maintenance charges, renewal expenses, repair costs, and repainting costs.

It happens all the time. Every department has items that would be nice to have and in fact would help the department run better. Those dreams are submitted in the budget. The budget also lists the items which are necessary to continue at last years level. Every hospital needs more equipment. Every sheriffs' department needs more cops. Every library needs more books.

The importance of a budget cannot be stressed enough not only for the value of doing a budget and sticking to a it but because this culture does stress the opposite to the value of it. Spending time on a budget with all the stakeholders allows everyone to have an input and take ownership in it and the results that come from it. I don't mean that the "budget meeting" is one where one person presents the budget as set in stone and the other people are simply an audience. These "meetings" are for feedback and exchange and coming to consensus about how the money will be used to support the household. Everyone gets a vote! Spending time on a budget shows maturity, respect, and shared goals. For the adults in the discussion (whether they earn the money or not) this gets everyone on the same page and buy-in to the process. This is not a dictatorship but a mutual goal. But a budget is worthless if after the meeting every goes their own way and spends whatever they want afterwards. The budget - a good budget - is a living document - a map to the goals you want to attain to be followed by everyone without exception!