Accounting for Managers

Executive Summary

Budgeting is an extremely important process for the entire organization, but also complex and involves the whole organization. Since the effectiveness of planning depends on the development, profitability and market position of the company. It survival often depends on the skill of the course changes and remodelling business, if there are changes in key market parameters. Creating a budget every year is a challenge for all organizations. In the case of the budget process, it appears very complex and involves extended time virtually the entire company. Natural Avenue Sdn. Bhd. (NASB) while analyzing the budgeting process, pay attention to the complexity, multi-stage, its territorial scope, budgeted categories of data, detail the value and quantity of data, periods of budgeting, consolidation of existing mechanisms budgets, allocation mechanisms used, as well as the existing model of financial company. Budget is the estimation of short term financial plan for a project, which is required to manage funds. The document includes are the costs they will incur during a period of time, as well as the income that will be generated during the course of the project. A well-planned budget can contribute greatly to the understanding of the project by the company's lower and upper management. Budgets are important because they help minimize the risk in the operations of the organization and it Improve efficiency in the allocation and spending of public resources. Furthermore, there are certain barriers in t eh success of the budget. These are resources, people which are handling and implementing the budget. These are one which can make the budget successful and unsuccessful. This also appears when employees goals and company goals differs and they way of doing work. Here, company needs to change the perception of the employees. These are the main issues which limits the budgeting success. Other is the communication methods which also limits the budgeting success.

Table of Content

1.EXECUTIVE SUMMARYI

2.INTRODUCTION1

2.1Areas of budgeting1

2.2Modern Planning and Budgeting2

2.3Success of Budgeting Process2

3.DISCUSSION3

3.1Budgets for Business Operations Conversion of Objectives and Goals Into Data3

3.2Involvement of Human Resource And Perception Of Individual Roles6

3.3Communication Flows - Budgeting Process is imposed or participatory9

3.2.1.Budgeting Process Approaches11

4.CONCLUSION AND RECOMMENDATION14

5.REFERENCES16

Budgeting Processing

Introduction

Budgets are part of financial planning for any company to be successful and big business. Hence, it is a plan of the company for a certain period, expressed in monetary terms. Budgeting allows company the most efficient way to use the funds which are in disposal of business. It allows company to make the right decisions action for manufacturing, sales, and the in-financial investment funds, for example the cost management, sales, profits, inventory, accounts receivable, cash economy The activities that accompany managerial decision , usually include a variety of functional areas of business, such as marketing, production, purchasing, finance, etc. The task of the company board and middle managers is to coordinate regarding the related aspects of the process of decision-making. Coordination is based on the preparation of action plans of the company in future periods. These detailed plans are called ...