Difference between revisions of "Budget"

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Revision as of 11:20, 7 January 2011

Budget Tab

Budgets and Budgeting

• Budget is a future plan which sets out a business’s financial targets.
• Budgeting refers to the preparation of budgets - the drawing up of financial plans and monitoring the performance of a business in attaining them == Formal definition of a budget == • “A budget is a quantitative statement, for a defined period of time, which may include planned revenues, expenses, assets, liabilities and cash flows. A budget provides a focus for the organisation and aids the co-ordination of activities and facilitates control”. (CIMA)
• Budgets are prepared in advance of a defined period of time. They are based on the objectives of the business and are intended to show how policies are to be pursued in order to achieve objectives.

What is a budget?

• is a financial plan.
• sets out a businesses financial targets.
• is a plan expressed in money.
• an agreed plan of action over a given period.
• an agreed plan establishing, in numerical or financial terms, the policy to be pursued and the anticipated outcomes of that policy.

Within the Budget tab of ERP you are able to create new budgets for the company or any Department/Cost Centre thereof. You are able to have multiple budgets and what-if scenarios for an unlimited number of fiscal periods. You are able to create budgets for either daily, weekly, monthly, quarterly or yearly.

The program allows you to track actual figures in comparison to budgeted figures, as well as view the budget in direct comparison to the Profit and Loss.

These features are also available by using the drop down menu through Accounts / budgets

The objective of this area of the program is allow the forecasting and tracking of figures on an account by account basis, enabling the operator to quickly and accurately identify any areas that need attention and that have fallen outside of the parameters, before they become a problem.

The following buttons take you to the differnt areas within budgeting.

Budget definition

- This button allows you to name and define a new budget including which accounts it affects, time periods, time intervals and which departments or cost centres the new budget relates to.
See Budget_Definition

Budget Definition List- This button allows you to view all existing budget definitions and edit these by double clicking on your selection
See Budget_Definition_List

Budget - Allows you to add a new budget
See Budget

Budget List - This Button provides a list of all existing budgets, the details of which can be viewed by double clicking your selection
See Budget_List Budget Profit & Loss Report - This button opens a Profit & Loss report that shows the budgeted figures as they stand in a reportable format against your profit and loss
See Budget_Profit_&_Loss

Budget vs Actual- This button allows the user to view how the company is tracking against a budget for any of the budgets that currently exist.
See Budget_vs_Actual

Account List for Budget - This button will display the Chart of Accounts (list of all accounts) that have an existing budget set against them
See Account_List_for_Budget

Job Report (Budget vs Actual) - View Budget vs Actual figures by customer job allowing you to see how any particular job is tracking against its budget
See Job_Report_(Budget_vs_Actual)

Budget Variation - This button allows you to select an existing budget, and change the period, increase or decrease the expectations, by either a percentage or dollar amount allowing you to adjust budgets to account for changed circumstances
See Budget_Variation

Budget Reports - This button triggers the report selector with the Budgets area open.
See Budget_Reports