Budgeting and Forecasting

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According to Salary.com, the average income of a small business owner as of 2006 was $233,600.

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The format of the Balance Sheet is Assets = Liabilities + Equity

* Current Assets * Fixed Assets * -------------------- * Total Assets * Current Liabilities * Long Term Liabilities * -------------------------- * Total Liabilities * Equity * Net Income * ---------------------------- * Total Equity * -------------------------- * Total Liabilities and Equity

Yes, cheques are included in cash flow statements. Currency and coins are counted as well when balancing accounts receivable.

Operating assets contribute to the day to day functions of the business. While financial assets add value to the business, they do not account for profitability of the business. Financial analysis models only use the operating assets to determine future profitability.

Gross Profit is the difference between money received from sales and the money you have paid out for the goods you sold.

Operating Profit is the gross profit less any expenses you incurred while trading such as rent for premises, electricity, telephone bills

Net profit is the operating profit less any tax and interest and dividend paid. The net profit is sometimes called "bottom line profit"

Hope this clears things up!

I presume you mean computer systems, in which case Sun Accounts and Sage would be two.

1.pay in slip

2.withdrawal slip

3.cheque

4.pass book

5.fdr

6.account statement

7.demand draft

8.draft requisition form

Quote recap refers to a summary that usually appears at the end and repeats itself in a given discussion. The quote recap is used to bring certain things that were discussed previously into context.

It's a human nature that if he devotes/(invest) his resources he looks for an healthy outcome (Return) i.e., he wants return on what he had invested. In short it is ROI. (RETURN ON INVESTMENT) A Businessman looks his healthy ROI as how much Profit he had gained from his deployed resources (Health / Wealth). All businesses give returns that return can either result him profit or loss. A smart & successful investor will always care about security of his investment along with desired results. The percentage of return depends on the type of business you have chosen. High risk gives high returns and the low risk gives low returns. Taking example of Our Company an ROI greater than 24% is an healthy ROI from both angles. But an exceptionally high ROI (40% etc.) can lead to the fact that there is some gap which is in reverse direction. ROI can be calculated as follows: (Example of our R.S. /R.D.) 1. ROI = (NET PROFIT /Net INVESTMENT)*100 Net Profit = Gross Profit - Expenditure 2.ROI = No. Of Rotations * Net Profit Margin No. Of Rotations = Turn Over / Investment Net Profit Margin = Gross Profit - Expenditure Gross Profit = %Gross Margin * Turn Over Investment: Paid up Stock, Credit, Claims Gross Profit: Gross Profit stands for (Total Turn Over * % Gross Margin) Expenditure: Expenditure covers each & every money spent in relation with that business. That can be 1. Staff Salary 2. Office Expenses (Tele, Elec., Rent, Insurance, Printing etc.) 3. Distribution Cost 4. Any Discount 5. Miscellaneous Taking example : 1. A TO Z Agency A Sales and Turnover 1 Concern Sec Sales (year 2005) (Rs.lakh) 98 2 Gross Margin @ 4.76% (in Rs.lakh) 4.6648 B Investment (in Rs.lakh per month) 1 Stock 4.01 2 Credit 3.6 3 Avg Claims 0.12 Total 7.73 Total Investment (in weeks) 3.79 4 CET (in days) 5 Net Investment (in weeks)3.07 Net Investment (in Rs.lakh/month) 6.27No. of Rotations 15.6 C Cost Elements (in Rs. per month) 1 Salesmen - Salary + TA/DA + misc4500 2 Other Staff Cost a Godown keeper 1000 b Computer operator 0 c Any other staff 0 Total 10003 Distribution cost a Cost of Diesel 0 b Cost of Oil 2000 c Vehicle Maintenance 1200 d Vehicle Driver - Salary + TA/DA 2800 e Delivery Boy - Salary 2000 f Cost per dispatch 0 g Any other delivery costs 650 Total 8650 4 Office Expenditure a Telephone and Fax 700 b Electricity 300 c Printing and Stationery 200 d Rent and Insurance 500 e Miscellaneous 0 Total 1700 5 Discount to Trade 8100.00 Total operating Costs (Annualised)2.87 Net Margin (in Rs.lakhs) 1.79 Net Margin % 1.83 Return on Investment 28.6ROI of A TO Z Agency comes out 28.6% which is an healthy ROI. REGARDS NARESH SINGH LUXOR PARKER

A sales budget is the very first budget to be produced. it has for purpose to project what is ahead by using past performances record. A sales budget is not about cost but about how much money you can get. Its main components are Price x volume= Sales budget.

If the organization in question is a retailer, storekeeping is essential. The storekeeper will maintain the shop and take care of all day-to-day needs in the workplace.

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The three types of business entities are a sole proprietorship, a partnership, and a corporation. A sole proprietorship is owned by one person, a partnership is owned by two or more people, and a corporation is a business entity separate from its owners.

A future cost might include going out to eat. It really is not relevant to the grand scheme of things, but you still have to pay for it.

Planning -- involves determining organizational and program objectives and evaluating

alternative means for their achievement. Planning also includes prioritizing.

Control -- defined as monitoring, comparing information to a standard and taking corrective

action. For a budget to serve this function well it must have four characteristics:

It must be well-conceived (i.e., result from a good planning process) and be approved

by the board

It must be broken down into increments corresponding to the periodic financial

statements

Financial statements must be prepared on a timely basis and compared to the budget

The board and staff must take action where such comparison indicates a potential

problem

Management -- allocating resources deliberately and prudently to achieve program objectives.

This includes programming approved goals into specific projects and activities, the

design of organizational units to carry out programs, staffing, and procurement of

resources.

Budget Planning Processes

a) Incremental/Decremental

b) Zero-Based

c) PPBS

d) Performance

Budget Formats

a) Line Item

b) Program

c) Performance

d) Functional

Total variable costs are the sum of expenses which change proportionally as the price of services and goods fluctuate. The total marginal costs above produced units is also referred to as total variable costs.

Manufacturing Cycle Efficiency is value add (VA) time divided by non-value add(NVA) time. That is, in the entirety of a process flow or value stream flow, the total of value added time divided by the total of non-value added time. For example, total manufacturing cycle time of 28 days. Of the total, let's say there is 1 day worth of VA time and 27 days of NVA time. That means your cycle efficiency comes to 3.7%.

Accounting Departments are usually structured along functional lines: Accounts Payable, Accounts Receivable, Payroll, General Ledger, Sales Transactions, Inventory, etc. A small company may have one person performing more than one (sometimes all) of the functions. In this case, there needs to be financial controls to reduce the probability of theft or embezzelment. In a large company, there could be many people wotking in one functional area; and in that case, that function might be broken down to smaller components.

Basically... * as a starting point for all other budgets * to set objectives for sales * allocate resources and finance * based on assumptions about the maket

From a stakeholders point of view a budget is a statement in dollars of an individual's or organization's objectives and priorities. From a financial point of view a budget is planning tool of the cash flow of individual or organization, by stating for a given period of time, and in some level of detail what are going to be the spendings and the income sources. From a managment point of view a budget is a tool of control and discipline by allocation of financial resources according to a plan and by tracking budget execution.