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    Prepare and Implement Budgets: BSBFIM601 Manage Finances Session 3

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    Tatiana Garcia Mendoza

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Prepare and Implement Budgets: BSBFIM601 Manage Finances Session 3

    Uploaded by

    Tatiana Garcia Mendoza
    19 views9 pages

    Original Title

    Presentation-3

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    19 views9 pages

    Prepare and Implement Budgets: BSBFIM601 Manage Finances Session 3

    Uploaded by

    Tatiana Garcia Mendoza

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Prepare and

    implement budgets
    BSBFIM601 Manage finances
    Session 3
    Purpose of this presentation
    At the end of this session, you should know how
    to:
    Prepare required budgets based on previous
    financial data
    Explain the outcomes and assumptions made
    when developing the budgets
    Ensure an audit trail has been maintained
    Implement the required budgets and revise
    where required
    © Innovation & Business Industry Skills Council Ltd
    Sales budgets
    Key financial indicator for
    most for-profit businesses
    Departmental sales budgets
    Sales by time period

    Department Last year % of Total Budget allocation

    Local sales 200,000 40% 220,000

    Export sales 300,000 60% 330,000

    Total 500,000 100% 550,000

    © Innovation & Business Industry Skills Council Ltd


    Profit budgets
    Expenses
    Variable vs. Fixed
    Direct vs. Indirect
    Wages and salaries
    Cost of goods sold
    Gross Profit

    © Innovation & Business Industry Skills Council Ltd


    Cash flow budgets
    can reflect both past performance and future
    projections
    Aged debtors
    Cash flow GST
    Cash in Cash out
    • Sales • Purchases
    • Debtor pmts • Supplier pmts
    • Loans/finance • Loan repayments
    • Equity from owner • Owner’s drawings
    • Asset sale • Capital expenditure
    • Wages/salaries
    • GST/PAYG

    © Innovation & Business Industry Skills Council Ltd


    Implement budgets
    Budget notes
    Communicating the budget
    Risk management
    Roles and responsibilities

    Proces
    Input Output
    s
    controls controls
    controls

    © Innovation & Business Industry Skills Council Ltd


    Revise budgets
    A budget is a statement of strategic intent
    Budgets should not be reviewed simply to alleviate the
    pressure of not meeting expectations
    Review budgets as a contingency measure in
    unforseen circumstances, when budget has lost
    support of users

    © Innovation & Business Industry Skills Council Ltd


    Internal controls
    Internal control process
    Reflected in policies and procedures
     Procedures should ensure:

    control  Complete
    environment
     Accurate
     Authorisation
    entities risk  Validity
    monitoring of
    assessment
    controls
    process  Existence
     Handling errors identified
     Segregation of duties
     Presentation and disclosure
    information
    control activities
    systems

    © Innovation & Business Industry Skills Council Ltd


    The next step
    You should now:
    Prepare required budgets based on previous
    financial data
    Explain the outcomes and assumptions made
    when developing the budgets
    Ensure an audit trail has been maintained
    Implement the required budgets and revise
    where required

    © Innovation & Business Industry Skills Council Ltd

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