Budgeting

Budgeting is one of these topics, do you think that that would allow us to avoid pretty, but in the enterprise, is an absolute necessity. In order to prepare a reasoned and thoughtful budget, an accountant must begin with a critical analysis extended the latest actual performance and the position of the company managers who are responsible for the results. Managers decide on concrete and specific objectives for the coming year. It requires a quantity just management time and energy. Budgets should be worth the time and effort. This is one of the key components of a manager working.

To build the availability of financial statements, a manager must good models of profits, cash flow and the financial situation of your company. Models are plans or schemes of how things work. At its core, a budget of the company is a financial plan of the company.Budgeting relies on financial models that are the basis for the preparation of financial statements budgétés.Ces statements are as follows:

-Declaration of income budgeted (or profit report): this statement highlights the critical information that managers need to make decisions and perform a contrôle.Une much of the information contained in an internal profit report is confidential and should not be disclosed outside the company.

-Balance budgeted: connections and relationships between revenue and expenditure and their corresponding active and passive are elements of the model base for the budget balance.

-Budgeted cash flow statement: changes in assets and liabilities in their balance at the end of the year just completed balances planned at the end of the year to determine the cash flows of profit for the year ahead.

Budgeting requires good models of labour profit performance, financial position and good budgets profit.Construire cash flow is a powerful incentive for companies to develop financial models that not only help in budgeting but also help managers to make strategic decisions.