際際滷

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Why bother to budget?
Simply put, a budget is a summary of likely
income and expenses for a given period. It is
an invaluable tool to help you control,
prioritise and manage your business.
Planning and monitoring your budget will
help you reduce waste, adapt to change and
achieve your financial goals.
Budgeting Methods
 Zero Based Budgeting  starting from zero rather than adjusting the
previous year
 Top Down  start with the objective and work down into the detail
 Bottom Up  start with the costs and work out the level of sales
needed to produce a profit
 Activity Based Budgeting  look at the cost drivers and activity
volumes
Sales Budget
 Prospects
 Leads
Opportunities
 Work in
Progress
 Order Book
Orders
 Target
 Estimates
Targets
Cost of Sales
Wages Materials
Direct
Overheads
Overheads  Fixed Costs
Salaries Premises
Other
Capital Expenditure
Cash Cycle
Debtor Days
Stock Days
Creditor
Days
We Can Help
Catherine Machalinski ACMA
Farriers Chambers
Smith Street
Rochdale OL16 1TU
e-mail: catherine@prevailaccountancy.co.uk
By phone: Tel/Fax: 01706 550 825
Mobile: 077 069 15 444

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Why bother to budget

  • 1. Why bother to budget?
  • 2. Simply put, a budget is a summary of likely income and expenses for a given period. It is an invaluable tool to help you control, prioritise and manage your business. Planning and monitoring your budget will help you reduce waste, adapt to change and achieve your financial goals.
  • 3. Budgeting Methods Zero Based Budgeting starting from zero rather than adjusting the previous year Top Down start with the objective and work down into the detail Bottom Up start with the costs and work out the level of sales needed to produce a profit Activity Based Budgeting look at the cost drivers and activity volumes
  • 4. Sales Budget Prospects Leads Opportunities Work in Progress Order Book Orders Target Estimates Targets
  • 5. Cost of Sales Wages Materials Direct Overheads
  • 6. Overheads Fixed Costs Salaries Premises Other
  • 8. Cash Cycle Debtor Days Stock Days Creditor Days
  • 9. We Can Help Catherine Machalinski ACMA Farriers Chambers Smith Street Rochdale OL16 1TU e-mail: catherine@prevailaccountancy.co.uk By phone: Tel/Fax: 01706 550 825 Mobile: 077 069 15 444