Budgeting-Modelling Model In Corporate Planning Process

1) Leadership is quite clear defines itself. We all understand that leadership is came from the word “lead” and means the process of leading a group of people during some works or projects. Leader is a main person who is responsible for certain tasks and his team, and he leads his group till expected final goal. Project management has wide variety of activities including planning, controlling work and resources, organizing and so on. Leadership could be equally one of project management activity or a separate process that influences this management. What should be extremely clear is that the leadership has to be well performed in all possible ways. So, firstly, project itself means something not permanent. It could have a goal to create something

Sometimes people tend to confuse business planning and corporate planning. However, these concepts are different. The required topic here is corporate planning, which is related more to company’s employees and their responsibilities. This planning sets goals that are focused on employees’ activities, for example, to train employees and so on. Staff should be ready to meet challenges, to explore new things, to study competitors, to achieve very important goals for the company. Corporate planning always provides all employees with time, which should be taken into account during tasks’ performing. Now about the model itself. What is budgeting and why it is needed running business? The budget is kind of plan that predicts future financial condition of the company. It is showed in numbers and other financials symbols like currency, or time periods like hours or months. The time period of the budget depends on company’s goals and strategies. It could short-term or long-term. Sometimes intermediate-term is excreted, but it is not necessary. Effective budgeting always depends on proper employee’s work, who is responsible for that. A manager should evaluate all possible outcomes that could happen. Budgeting should touch all hierarchical groups of the company, and also understand all employees’ and company as a whole needs. Predict

It is extremely inevitable budget in all kinds of companies starting from small businesses and ending with global corporations. The aim of such budget is to define company’s liquidity and solvency, to manage all financial transactions and ensure that all money works and makes profit. Cash flow analysis in budgeting allows to optimize its money flow and eliminates cash gaps. This budget shows the resources from where company receives money, what are its costs and what amounts are in use and aren’t in use. So it has a lot of significant advantages, but also it is important to pay attention also on some challenges in cash budget. First of all, cash budget should meet all strategic goals that company is willing to achieve during certain period of time. It means that all inflows and outflows should be measured in terms of company’s clear strategy. Next is the lack of long-term forecasts. One of common mistakes is that companies emphasize more on short-term financial performance (example: company makes a cash budget referring on existed contact, customers, vendors and so on), that disturbs company to see all possible result in growing perspective. Also, all mistakes and inaccuracies could become very serious problems in company’s future existence. So it is very important to take into account all objective related to company’s financial part. The next part of this topic is cash budget methods. They are