A budget manual is a document that contains the policies and procedures for preparing, submitting, and managing a company's budget. It is a tool that can be used by both managers and staff to ensure that the budgeting process is conducted in a consistent and efficient manner.
What are the components of budget manual?
The budget manual is the document that lays out the procedures and guidelines for preparing, submitting, and managing the budget. It spells out who is responsible for what and how the budget process works. The manual should also include information on how to use the budgeting software, if there is any.
What are the 6 major types of Budgets?
1. Operating Budget: The operating budget is the most common type of budget. It itemizes the expected revenues and expenses for a company over a specific period of time, usually one year. The operating budget is used to manage the day-to-day operations of the business.
2. Capital Budget: A capital budget is used to plan for major expenditures, such as new equipment or facilities. The capital budget is typically longer-term than the operating budget, spanning two or more years.
3. Cash Budget: A cash budget forecasts a company's expected cash inflows and outflows over a specific period of time. The cash budget is used to ensure that the company has enough cash on hand to meet its obligations.
4. Sales Budget: The sales budget is a forecast of a company's expected sales revenues over a specific period of time. The sales budget is used to plan for inventory and other resources needed to support the expected sales.
5. Marketing Budget: The marketing budget is a forecast of a company's expected marketing and advertising expenses over a specific period of time. The marketing budget is used to plan for marketing campaigns and other initiatives.
6. Strategic Budget: A strategic budget is a long-term plan that outlines a company's financial goals and objectives. The strategic budget is used to guide the company's overall business strategy. What are the 2 main elements of a budget? The first element of a budget is the income statement, which shows how much revenue the company expects to bring in during a given period. The second element is the balance sheet, which shows the company's assets and liabilities.
What is another name for operating budget?
The operating budget is also known as the income statement budget. This budget outlines the revenue and expenses for a company over a period of time, usually one year. The operating budget is used to plan and control the company's financial operations.
What are the 8 budget categories?
1. Sales and marketing: This category includes the costs of advertising, promotions, and sales commissions.
2. Research and development: This category includes the costs of developing new products and services.
3. General and administrative: This category includes the costs of running the day-to-day operations of the business, such as rent, utilities, payroll, and office supplies.
4. Interest expense: This category includes the costs of borrowing money, such as interest on loans and credit cards.
5. Depreciation and amortization: This category includes the costs of depreciation (a reduction in value due to wear and tear) and amortization (a reduction in value due to obsolescence).
6. Taxes: This category includes the costs of federal, state, and local taxes.
7. Dividends: This category includes the costs of paying dividends to shareholders.
8. Other: This category includes all other miscellaneous costs not mentioned above.