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Tuesday, November 10, 2009

How to Make a Company Budget Plan

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How to Make a Company Budget Plan


By Shandell Williams
eHow Contributing Writer

Creating a set budget for a company should not be intimidating. It should, however, be planned in depth in order to achieve the maximum financial outcome. Whether you are starting a company budget or planning an existing company budget, the same rule applies--develop a strategic plan for a set budget as well as forecasting. To make a company budget plan, it is important to consider both the operation and financial aspects of the business. In other words, planning and controlling the budget is necessary in order to effectively manage the company budget plan; here's how.

Things You'll Need:

  • Financial plans
  1. Step 1

Plan an effective budget by utilizing proper organization, staffing and direction of the company’s operations. It is essential that the management overseeing the budget not only create an effect budget plan, but also use proper observation, analytical and reporting techniques.

  1. Step 2

Look to the future and make assumptions regarding variables or situations that may affect the company’s budget plan. This allows a proactive reaction to be established if the economy sours or unforeseen events occur.

  1. Step 3

Set goals. The annual plan's foundation is established based on the goals that are set forth for the company’s budget plan. Company budget goals may include rate of return on investments, market share, establishing quality leadership and survival.

  1. Step 4

Include a performance objective. This is yet another goal that requires action. A performance objective is a set goal to attain a certain performance level. For example, a performance objective could be to earn a $200 thousand in a year or even a quarter.

  1. Step 5

Integrate expenditures, asset requirements and estimated finances needed.

  1. Step 6

Coordinate by creating a detailed, organized budget plan structured and organized in a flow chart. This should organize the company’s budget objectives.

  1. Step 7

Format the budget plan showing a budgeted balance sheet, including assets, liabilities and other financial information.

  1. Step 8

Document the progress of the budget, including all the account payables, accrued expenses and other debts. A financial document should document account receivables as well.

  1. Step 9

Take control of the company budget plan. Because the budget is subject to change based on economic and unexpected circumstances, it is important to take control of the company’s budget plan by implementing new strategies if necessary and monitoring the financial performance of the budget by utilizing daily reports.

  1. Step 10

Make predictions about the future outcome of the business. This is called forecasting.

  1. Step 11

Organize your budget plan. It is impossible to make a company budget plan without using proper organizational skills. Get your information organized in a professional, accurate and easily accessible manner.

Tips & Warnings

  • Purchase applicable software for tracking budgets.
  • Seek professional financial guidance for business owners.
  • Attend business financial seminars.
  • Never make budget plans without extensive knowledge of the company.

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