2016 budget orientation
DESCRIPTION
Budget OrientationTRANSCRIPT
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Orientation
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Which is correct?
A. A PLAN IS A BUDGET
B. A BUDGET IS A PLAN
C. A PLAN & BUDGET IS SAME
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A written document that describes in detail how a business or new business is going to achieve its goals. A business plan will lay out a written plan from a marketing, financial and operational viewpoint.
BUSINESS PLAN
The idea behind putting together a business plan is to enable decision makers to have a more defined picture of potential costs and drawbacks to certain business decisions and to help them modify accordingly before implementing these ideas.
Purpose
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I n L uke 14:28-29, J esus counseled, "F or which one of you, desiring to build a tower, does not first sit down and count the cost whether he has enough to complete it? Otherwise, when he has laid a foundation, and is not able to finish, all who see it begin to mock him."
BIBLE VERSE
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The study showed that companies with written business plans increased their revenues 69% faster over a five year period than those without plans.
- Journal of Accountancy
SURVEY
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Part is Budgeting
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Budget Benefits
Top 10 Benefits of Budgeting 1. Gives you control over your money. 2. Keeps you focused on your money goals. 3. Makes you aware what is going on with your money. 4 Helps you organize your spending and . 5. Makes you decide in advance how your money will work for you. 6. Enables you to save for expected and unexpected costs. 7 Enables you to communicate with management. 8. Provides you with an early warning for potential problems. 9. Helps you plan to pay loans. 10. Enables you to save cost.
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WHAT DO WE BUDGET?
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BUDGET MONITORING
SPENDING METER BUDGET/FUNDING METER
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A budget is nothing more than a written estimate of how an organization — or a particular project, department, or business unit — will perform financially
BUDGET DEFINITION
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HIERARCHY OF PLANNING
MISSION
FORECAST
STRATEGIC PLANNING
ALIGNED CORE FUNCTIONS
ANNUAL BUDGET
PRIORITY DELIVERABLES
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INDIVIDUAL ACTIVITY 1
“My Personal Vision & Mission”
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Sample Personal Vision
“I will become a well-known and respected leader in the food industry revitalizing the ways food is produced and marketed making healthier products to help people live better lives.”
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Sample Personal Mission
“To be a teacher. And to be known for inspiring my students to be more than they thought they could be."
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HIERARCHY OF PLANNING
MISSION
FORECAST
STRATEGIC PLANNING
ALIGNED CORE FUNCTIONS
ANNUAL BUDGET
PRIORITY DELIVERABLES
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DELIVERABLES
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OF ALL KEY DELIVERABLES ONE WILL STAND ABOVE THE REST – PRIORITY DELIVERABLES
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BUDGET ALLOCATION
PRIORITY DELIVERABLES DESERVES A HIGHER:
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DELIVERABLES
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PART OF THE PLAN
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INDIVIDUAL ACTIVITY 2
“My Short & Long Term Plan”
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BALOONED BUDGET DEFICIT WILL CALL FOR A DRASTIC BUDGET CUTS
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BUDGET IS A EFFECTIVE INTERNAL CONTROL SYSTEM
BUDGET AS A CONTROL MECHANISM
BAD SPENDING
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SIMPLE FORMULA FOR BANKRUPTCY
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BUDGET LIMITATION
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NO ADVANCE FORECASTING TOOLS AND PROGRAM CAN SEE WHAT THE FUTURE LIES BEHIND
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WHEN SALES FORECAST / PROJECT ESTIMATES FAILS
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OUR BUDGET STRATEGY
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PROFIT DRIVEN RESPONSIBILITY CENTRES
COST
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The gist of 20th century thinking management control is expressed by the mantra: let the managers manage; make the managers manage.
MANAGERS AS COST/PROFIT CENTER MANAGERS
RESOURCES
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MANAGER’S TOOL
MANAGER
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Describe the Bottom-Up Approach to Budgeting
TopManagement
Manager ManagerManager
Each manager prepares a budget request, from which management creates an overall budget.
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Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program. The performance-based budgeting process is a tool that program administrators can use to manage more cost-efficient and effective budgeting outlays.
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TARGET GOAL
BUDGET FUND
GOAL VS BUDGET
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UNDER-ACHIEVED BUDGET (SAVINGS) DOES NOT MEAN FAVORABLE BUDGET OR OVER-ACHIEVED BUDGET (DEFICIENCY) DOES NOT MEAN UNFAVORABLE BUDGET BUT WHAT IS IMPORTANT IF THE SET GOAL IS ACHIEVED WITHIN ALLOCATED BUDGET.
INTERPRETATION
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GROUP ACTIVITY
“Plan & Budget Implementation”
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