Sales budgets to forecast sales revenue – Labour budgets to forecast labour expenses – Material budgets to forecast purchases of goods for sale or for use in preparing – finished products Inventory budget planning quantities to be held in and the amount of money – invested in stock Overhead budgets concerns other estimated operating expenses (E.g. Rent, rates, – etc.) Capital Expenditure budgets plans for long-term assets to be purchased, replaced, – upgraded Budgeted Financial Performance Statement concerns estimated profit or loss. This – brings together several of the above budgets, for sales, material, labour, overheads, inventory Cash budgets concerns the estimated cash inflow, cash outflow and cash position of a – business Budgeted Statement of Financial Position concerns estimated values of assets, – liabilities and owners’ equity at the end of a budget period. Key requirements for budgets When preparing budgets it is important to identify: The time frame or period to which the budget applies The budget line to be included, including what is contained in each budget line items What departments of areas of responsibility individual budget line items will be grouped towards Budget line codes. Estimating project/program revenue In the case of projects that are expected to generate revenue there will be a need to estimate what the sales figures will be for the up-coming period. Reasons to estimate revenue This estimation, which is little more than an guess’, serves two important ‘educated functions: It sets the figure for income for the period this may be done on a simple ‘projected’ – annual basis (that is, it will just identify a dollar figure for the entire year or project), or it may follow a different format and identify sales by (for example) each month or project activity
Sales budgets – to forecast sales revenue Labour budgets – to forecast labour expenses Material budgets – to forecast purchases of goods for sale or for use in preparing finished products Inventory budget – planning quantities to be held in and the amount of money invested in stock Overhead budgets – concerns other estimated operating expenses (E.g. Rent, rates, etc.) Capital Expenditure budgets – plans for long-term assets to be purchased, replaced, upgraded Budgeted Financial Performance Statement – concerns estimated profit or loss. This brings together several of the above budgets, for sales, material, labour, overheads, inventory Cash budgets – concerns the estimated cash inflow, cash outflow and cash position of a business Budgeted Statement of Financial Position – concerns estimated values of assets, liabilities and owners’ equity at the end of a budget period. Key requirements for budgets When preparing budgets it is important to identify: The time frame or period to which the budget applies The budget line to be included, including what is contained in each budget line items What departments of areas of responsibility individual budget line items will be grouped towards Budget line codes. Estimating project/program revenue In the case of projects that are expected to generate revenue there will be a need to estimate what the sales figures will be for the up-coming period. Reasons to estimate revenue This estimation, which is little more than an ‘educated guess’, serves two important functions: It sets the ‘projected’ figure for income for the period – this may be done on a simple annual basis (that is, it will just identify a dollar figure for the entire year or project), or it may follow a different format and identify sales by (for example) each month or project activity
TM_Manage_monitor_innovative_tourism_prog_projects_291015.docx