Financial budgets
The final document that consolidates the information contained in the operating budgets. It is designed to display the financial key performance indicators of the entire firm.
The financial budgeting of an enterprise includes:
Income and expense estimate. It can be used to determine expected revenue, expenses and forecast profit. All income and expenses are distributed by product classes, individual technological processes. At the same time, companies strive to avoid both a simplified, too general approach and excessive detail. This type helps to objectively determine the level of profitability and acts as a tool for effective control.
Financial plan by accrual method. The meaning of the document is that the indicators are included in the relevant articles as they arise, regardless of the actual receipt of money. This type of budget is designed to solve local problems and should not be limited to its compilation, since this form does not provide objective information on the actual movement of financial flows and may not reflect possible cash gaps.
Cash flow budget. This type germany email list of plan illustrates all sources of income and the structure of the company's mandatory payments. When drawing up, income and expense schedules are used in accordance with the provisions of approved agreements with partners, providers, consumers, tax authorities, employees, investors.
Financial budgets
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With the help of such a budget, it is convenient to determine the periods in which there will be a shortage of available funds for timely payments on obligations. Therefore, it becomes possible to calculate the size of the necessary reserve of financial resources, as well as to determine the sources of its formation.
Enterprise budgeting management contributes to more rational use of finances and achieving positive economic results.
Forecast balance
The budget helps to make optimal use of available balances. For example, reserves, accounts receivable or accounts payable.
According to the level of elaboration and the possibility of adjustment, all budgets are also classified as fixed, flexible and combined.
Fixed. The final, final version of the budget, not subject to any changes.
Flexible. The document can be adjusted taking into account the current situation.
Combined. This type of financial plan combines the features of the two previous types. As a rule, the document is recorded at the beginning of the reporting period, and then it is edited as the situation changes.
The combined budget has the highest accuracy, but its preparation and maintenance are more labor-intensive.