Budgeting

- Provide strategic and analytical advice in weekly face to face leadership meeting at program level.

“The Budget Project” helped me mainly to budget my money in the future, also get a good job. The career I choose is a football career. It is something I can enjoy doing. If I play I will make enough money to pay all my bills. I will make 62,500 per game. I will have money for unexpected bills.

In this report I will evaluate how managing resources and controlling budget costs can improve the performance of a business.

Over the past month, we were given out an assignment to create a budget plan for a given possible situation in our future. We had a gross yearly income of $43000 (or a monthly one of $3583.33) and were given a series of categories that we would have to budget the expenses for. After finishing the project, we had to answer a series of questions reflecting on our experiences and learning. I thoroughly enjoyed this project, and found it genuinely eye-opening.

The IRR is generally the next best accepted method for determining the acceptance or declination of a project due to the fact that it also takes into account the time value of money, the risk associated with cash flows, and an the increased value of invested cash. Knowing that, it is generally accepted that IRR calculations lead to good decisions when it comes to accepting or declining a project. IRR is calculated either through trial and error with the aid of a financial calculator.

Throughout the entirety of the paper I will discuss the purposes of the income statement and the balance sheet; while also identifying the major types of expenses shown on the income statement, and listing major types of assets inside the typical balance sheet. I will also discuss the three different accounts that comprise the owner’s equity on a corporate balance sheet and the three categories of ratios that a business may use in an analysis of its financial statements. Lastly I will explain a statement of cash flows and describe the three standard sections contained in cash flow statements. Since I will be discussing multiple categories, I want to clearly state each one by dividing them into separate sections. Each topic holds dominant relevance to finance and the ability to fully understand a business by comprehending how they work. Having the ability to understand the data projected from a business, is the bone structure for seeing how it grows or regresses. To aid in this understanding I would like to first start off with the income statement.

The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. Generally speaking, the higher a project 's internal rate of return is, the more desirable it’s to undertake the project. As such, IRR can be used to rank several prospective projects a firm is considering. The project with the highest IRR would probably be considered the best and undertaken first. IRR is sometimes referred to as economic rate of return (ERR) or simply the rate of return (ROR). In theory should companies undertake all projects or investments available with IRRs that exceed the cost of capital.

c) The difference between the IRR and NPV ranking is due to the fact that NPV rule prioritize the project that produces the maximum cash flows whereas IRR rule prioritize the project that produces the highest return w.r.t. the initial investment.

Top-down budgeting is the preferred method of budgeting for government agencies and many organizations (Ljungham). The methodology of top-down budgeting is described in Towards a Metatheory of Budgeting, as “dominated by top members of the executive branch and the legislative branch” (Williams & Calabrese, 2011, 178). The methodology entrusts top members to make annual budgeting decisions for their organizations. In many instances, top members also use this time to set annual program or department goals and targets. Top members make these decisions without solicitation of input from bottom levels of an organization. This can result in operational and logistical constraints in the lower levels of an organization when plans are implemented (Williams & Calabrese, 2011). Additionally, it can serve as a source of frustration for staff when uninformed budgeting decisions create consequences. This is particularly true when staff is tasked with making things work in the aftermath of budgeting decisions, despite having clear or attainable goals and budgets. Like all budgeting methodologies, there are benefits and difficulties.

In the mission to locate the ultimate budgeting procedure, a few school districts have changed to a school-based process in an expected way decides reserves for each school and after which places principals responsible for the actual dispensing (Johnson, 2003). Spending executives regularly like this approach since it permits them, as number crunchers, to shift the responsibility instead of being the arbitrator. As such, different ways of doing things are perfectly healthy crosswise over America. A few people in charge swear by a zero-based spending clear and sensible thinking, while others have made cross breed a solid basic structure on which bigger things

It motivates the executives to define the basic objectives of the company, it gives a structure to the company by defining the responsibilities of each of the parts that forms the organization, it motivates and rises the participation of all workers of the company, it obligates to maintain a control document with historical data, it facilitates managers the use of resources, and it gives periodic evaluations and analysis.

Cash-flow budget serves multiple purposes, the cash flow budget provides an overview of the cash inflows and outflows during a period. The first step in the construction process is identifying and timing the cash inflow. The principal purpose of the statement of cash flows is to provide relevant information about a company 's cash receipts and cash payments during a particular accounting period. Which is useful for answering questions such as How much cash did the firm generate from operations? • How did the firm finance fixed capital expenditures? • How much new debt did the firm add? • Was the cash from operations sufficient to finance fixed asset purchases. (Kuratko, D. F. (2009). Entrepreneurship: Theory, process, practice (8th ed.). Mason, Ohio: Cengage.) It should be remembered that entrepreneurs make assumptions to explain how numbers are derived, and they correlate these assumptions with information presented in other parts of the business operations. The set of assumptions on which projections are based should be clearly and precisely presented; without these assumptions, numbers will have little

Did you know Google AdWords just announced on October 4, 2017, advertisers budgets will be automatically enabled to exceed their daily allotment by two times?

A budget is a detailed plan of operations that is predetermined for a particular period. Budgets are quantitative or financial statements prepared for the purpose of attaining a particular objective. It is listing of all expenses and incomes i.e. planning them in advance to meet certain circumstances. In other terms, a budget is an organizational plan stated in monetary terms.

Nchite and Nsana, (2004): Public Finance Management and Utilization Project- Report on strategies and Mechanisms of an effective system of public finances management in Zambia.