Budgeting in this business helps as it can show how much money is coming in and out of the organisation, such as the CEO would be aware of how much they would need to spend on each department and how much would return as they would not wish to overspend and lose the money. Also using budgeting, it helps B.A identify inefficient expenditures and they can adapt quickly leading them to achieve their financial goals. This business uses budgets so it can set financial targets, to motivate employees and to assign responsibilities, to improve proficiency, to provide and turn strategic direction and objectives into practical reality, to monitor business performance and to control income and expenditure so the business does not overspend and to ensure there is enough capital set aside for emergencies. To conclude, this business uses budgeting in order to create an action plan for their business which can identify current available capital and estimates costs and anticipates
Budgeting can be defined as a solid process to decide the estimate of revenue and expenditure for the specific time period. This definition of budget serves for all, country, city, state, business or personal matter. It is observed that, each successful company never moves forwards without deploying budget process (Al-Shawabikah, 2000). So, talking about Personnel Budgeting, it is one of the crucial aspects of any business to keep labor or personnel budgeting in the mind at the start and end of the year to maintain or increase productivity and profitability of the business. In fact, it is similar to an operational plan, represented in the financial terms considering income and expenditure’s estimation (Dees & Paul, 2004).
It also follows the same concept of analyzing and preparing the sales budget first because there CEO feels that it is the basis for doing any other things. He stated that all the other budgets are related to the sales budget. When we prepare a project report for obtaining Finance from the bank, the bankers analyzed the projected sales because it will determine the profitability. This company also follows the concept of preparing the sales budget and based on that other budgets are
Once operations begin, cost accounting reveals how efficiently the work is being done, where the strong and weak spots are, and how to improve performance. The cost of making a product or providing a service is one of the most critical in a firm’s ability to meet the competition. With cost information to support the decisions, management can issue directives, perform follow up activities, and obtain the operating results that ensure prosperity and growth of the enterprise which I will elaborate more on the second question. In the first question, I may or may not have directly or indirectly answered the second question but I will try my best to elaborate on a few key points as to how cost accounting can help organizations develop innovative new products and achieve continuous improvement. Cost accounting can be viewed as the intersection between financial and management accounting.
This is one of the most essential components in budgeting. Without the forecasted cash flows of the business investment or venture to be assessed, capital budgeting is not possible. And to arrive with reasonable cash flow forecasts, the business should be able to identify the level of sales or demand for the business decision. To achieve this, the business will have to conduct an initial market study for their planned venture. Aside from the sales level, the business should also be able to identify the level of pricing that they will use.
Pressure to convey as manager and Harapan team and Fraser (2003) team focus on sales target; order customer orders whether they want or not; and achieve financial goals. There is little time for managers to concentrate on team building; motivation; performance level; assessment; or even time to design effective and productive positions to achieve better results. Therefore, the budgeting process tends to motivate managers to set their goals for financial and achievement purposes rather than working as a team. Hence managers are temporary guards of team members forced to be separated from organizational
The organizations despite of hiring competent management must also consider for the abilities and skills of the employees. They need to train their employees in order to accept change management practices. Connected to the Old way In some cases, the employees are seen to be emotionally connected towards old methods, therefore the show their resistance towards change implementation. In this regard, the organizations management should consider such emotional connection fo employees before implementation of change as this factor could hinder the implementation of changes in
The main job is to make a business run more efficiently without making major changes or spending millions of dollar. From doing research on management consultants and looking at job consultants it is something I would like to due. Although there are lots of challenges and long work hours I look forward to taking on the challenge. It is an enjoyable job because it 's like a game you gotta accomplish something with limited resources. The add extra benefits of being a management consultant is traveling and performance bonuses.
Where management consulting may be concerned regarding this matter is the handling of transition for companies and the increased introduction of legislation in connection to new business environments. This may be particularly pertinent to companies lacking skills and resources particularly in relation to areas such as Marketing, Accounting, Logistics and Human Resource Management. I would consider this to be a valuable consider especially in Ireland’s case considering our low tax rates which is in place to lure multinational companies to the island. I would argue that management consulting would be an important service to consider undertaking for companies endeavouring to relocate, industry experts that have a professional understanding of certain cross cultural and environmental nuances may be of
The main job is to make a business run more efficiently without making major changes or spending millions of dollar. From doing research on management consultants and looking at job consultants it is something I would like to due. Although there are lots of challenges and long work hours I look forward to taking on the challenge. It is an enjoyable job because it's like a game you gotta accomplish something with limited resources. The add extra benefits of being a management consultant is traveling and performance bonuses.