What Is Involved in the Budgeting Process?

The budget is a national annual centralized fiscal revenue and expenditure plan reviewed and approved by legal procedures. It stipulates the source and quantity of national fiscal revenue, the various uses and quantities of fiscal expenditure, and reflects the entire national policy and the scope and direction of government activities. Budget contains more than just predictions. It also involves the systematic and intelligent handling of all variables that determine the company's future efforts to achieve a favorable position.

[yù suàn]

Decentralized budget structure

Budgeting (or profit planning) is arguably the most widely controlled technology because it concerns the entire organization and not just a few of them.

1. The budget must be consistent with the company's strategy or goals;

2. As a quantitative detailed plan, budget is a meticulous and thorough arrangement for future activities and is the basis for future business activities. Quantification and enforceability are the main characteristics of budgets. Therefore, budgets are The most specific plan on which economic activities are executed and controlled is the articulation of goals and a powerful tool for directing corporate activities towards predetermined goals;

A budget is a quantification of a behavior plan. This quantification helps

The purpose of the budget includes the following:

1. Forced planning. The budget forces management to look forward and develop detailed plans to achieve the goals and expectations of each department, each business, and even each manager.

2. Exchange ideas and plans. Budgeting is a formal system that ensures that everyone involved in the plan is aware of what they should do. Communication may be one-way, such as the manager assigning tasks to subordinates, or it may be a two-way conversation.

3. Coordinate activities. The activities of different sectors need to be integrated to ensure that they work together towards a common goal. This means coordination is difficult to achieve. For example, the purchasing department should base its budget on production requirements, and the production budget should be based on sales expectations.

4. Resource allocation. The budgeting process involves identifying future needs and resources that will be available. Budget makers should be required to judge their resource requirements based on the level of activity or level of resources expected, in order to make the best use of them.

5. Provide a framework for accountability calculations. Budgeting requires the budget center manager to be responsible for his budget control goals.

6. Authorization. A regular budget should be used to authorize the budget manager's expenses. As long as the budget includes expense items, no further approval is required before the expenses are incurred.

7. Establish a control system. Control of actual performance can be provided by comparing realistic results with budget plans. Deviation from the budget can be investigated, and the reasons for the deviation should be distinguished between controllable and uncontrollable factors.

8. Provide performance evaluation tools. It provides goals that can be compared to actual results in order to evaluate employee performance.

9. Motivate employees to improve performance. If there is a system that allows employees to understand how well their work is done, employees can maintain their level of interest and commitment. Management identified controllable reasons for deviations from the budget, which provided incentives to improve future performance.

However, unrealistic budgets, or budgets that the manager buffers to ensure that the goals are achieved, or budgets that simply focus on achieving the goals without actual action are not good budgets. None of these budgets focus on long-term consequences.

Classification of budget:

Business budgets can be categorized in a number of different categories:

1. According to different budget content, it can be divided into business budget (ie

British bourgeois revolution

Britain was the earliest modern country to form a complete budget system. Early 13th century, UK

budget

Given these two complementary aspects of the budget, there are two basic

The government budget is the government's annual fiscal revenue and expenditure plan prepared and executed in accordance with certain legal procedures. It is an important tool for the government to organize and regulate financial distribution activities. In modern society, it is also an important lever for the government to regulate the economy.

The government budget first exists in the form of annual fiscal revenue and expenditure. It is an estimate of the size and structure of annual government fiscal revenue and expenditure.

The operating budget is in this one-year period.

Budget control, the budget control of the year-end award is a less headache, "the backward method works well." "It will not exceed the budget, because we will allocate it on the premise that the total award amount is determined." 73% of HR said in the alternative answer to "Does your company's actual 2007 year-end awards match the budget?" "Basic consistency" was selected in the survey, and 7% of the 14% of the enterprises that exceeded the budget were controlled within a reasonable 5% ratio.