Budgets and managing money is about what systems and skills are required in business to be successful and profitable. A business, also known as an enterprise or a firm, is an organisation involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be not-for-profit or state-owned. www.executivementors.com.au

1. The Basics of Budgeting
• A business shouldn’t open its doors without
having some idea of what to expect.
• It shouldn’t close its doors without
knowing what happened.
• A business should also plan and prepare for
its future.
• One way to do this is to budget.
Defining a Budget

2. The Basics of Budgeting
• Budgets provide the baseline against which to
measure actual performance.
• Why should we bother with budgets in this
age of change?
• We must plan in order to maintain focus and
prevent wasting resources.
• A budget is an educated guess that reflects
your long-term plans.
Defining a Budget

3. The Basics of Budgeting
The Budget Committee
•Should one department be responsible for the
budget?
•Should the budget be handed down from the
executives?
•Should the budget for one department interact
with another?
Defining a Budget

4. The Basics of Budgeting
The Budget Period
•How small should a budget period be?
•Should it coincide with the fiscal period?
•Should a long-range budget be in place?
•How accurate are they?
Defining a Budget

5. The Basics of Budgeting
• Sales budget
• Expense budget
• Production budget
• Manufacturing budget
• Labor budget
• Capital budget
• Cash budget
Types of Budgets

6. The Basics of Budgeting
Understanding Where Your Budget Fits

7. The Basics of Budgeting
Understanding Where Your Budget Fits