Business Budget Case Study: Financial Planning and Analysis

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Business Budget Case
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Table of Contents
Business budget case..............................................................................................................................1
Information..............................................................................................................................................3
1.1 Rational and justification for a new services.................................................................................4
1.2 Output requirement and activities..................................................................................................5
1.3 Output requirement and activities..................................................................................................6
1.4 Accuracy and feasibility of break - even analysis.........................................................................7
1.5 Quality, feasibility and relevance of performance criteria............................................................8
1.6 Writing skills..................................................................................................................................9
Conclusion.............................................................................................................................................10
References..............................................................................................................................................11
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Information
Business budget case justify the case of budget and takes the business into the new plans and
technology for the business. It outlies the allocation of resources, material and capital
required for the new business case. The successful business case moves towards the new
plans, new business action, and new implementations and makes decision for the new
business plans. The business budget case helps to remove the problems which usually done in
a business in a previous year. This provides the output and the financial data of the business
case. This business case makes such things in a business like zero base budgeting principal,
break even analysis and output requirements etc. The new base budgeting case take on to the
success and achieve the future plans. It also creates the budget plans for the business budget.
The information takes into the new business budget and plans for the business outlook and
creates the financial report and justification in a business.
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1.1 Rational and justification for a new services.
The justification for a new services of a business identify that how the business expenses was
occurred.
How directly other corporate strategic goals
This is obvious that the executives much focus about the strategic goals of the business
budget because this increase the profit, revenue , customer satisfaction, market share and
product brand(Oldenhof, et. al., 2014). The business should also aware about the strategic
goals that other business also does. The business strategic goals also depend on the financial
analysis and framework of the business because the goals mainly achieved by the financial
budget of the business.
The total revenue impact on the business budget project.
Total revenue impact on the business because revenue means profit in the business. Most of
the time CEO care for the top line growth if the revenue increase profit also increases so the
revenue impact on the business budget project.
Using the languages of business
This is important that in the business there will be using of dollars and numbers only.
Because when the business sells the amount will be used in $ 5.5 this is the right way to use
the business language this increase the value of shareholders.
Prepare budget account for business budget
Preparing of business budget account is good for the business to check revenue and expenses
for a business. because business depend on the revenue or profit if the business and provide
the justification of a business
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1.2 Output requirement and activities
There are many outcome or output requirements which provide the activities for business
budget case some of the activity are as follows.
Planning for the business success
This is major and mandatory for all the business for its budget case. The planning for a
business success gives benefits to the business (Abai & Deraman, 2016). The successful
busies creates the plans for making budget and prepare the business plans and on the daily
basis check the financial position of a business to maintain and manage budget of the
business.
Typical business planning
The reviewing current performance against the last year performance. there are many which
is a business cycle with typical requirement like workout the opportunities and threats,
analysis the success, the business should look on the objective and activity of the previous
year, prepare new financial year or budget statement of the year including balancesheet, and
profit and loss account and conclude the plan. This is the cycle of a business plans and
outcomes of an activity.
Benefits of the business budget
There are many types of the benefits in a large numbers like manage the money efficiently
and effectively in a business budget , allocate minimum resources according to the
performance , decision –making , makes the objectives and business goals.
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1.3 Output requirement and activities
There are many outcome or output requirements which provide the activities for business
budget case some of the activity are as follows.
Planning for the business success
This is major and mandatory for all the business for its budget case. The planning for a
business success gives benefits to the business (Abai & Deraman, 2016). The successful
busies creates the plans for making budget and prepare the business plans and on the daily
basis check the financial position of a business to maintain and manage budget of the
business.
Typical business planning
The reviewing current performance against the last year performance. there are many which
is a business cycle with typical requirement like workout the opportunities and threats,
analysis the success, the business should look on the objective and activity of the previous
year, prepare new financial year or budget statement of the year including balancesheet, and
profit and loss account and conclude the plan. This is the cycle of a business plans and
outcomes of an activity.
Benefits of the business budget
There are many types of the benefits in a large numbers like manage the money efficiently
and effectively in a business budget , allocate minimum resources according to the
performance , decision –making , makes the objectives and business goals.
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1.4 Accuracy and feasibility of break - even analysis
Break even analysis defines the relationship between profit, cost, volume of output. the
accuracy and feasibility of breakeven analysis are the different matters the feasibility is
different and accuracy of breakeven analysis is different
Feasibility
Feasibility of breakeven analysis means when there was a practically plans about the business
is provides by the business(Jones & Udell, 2012). this is called feasibility.
Accuracy
Accuracy of break – even analysis means the accurate position or accurate business plans
budget means correct business budget the value iscorrect in the budget and its plans. so these
both are the different points according to the breakeven analysis and also business budget
point of view. feasibility means practically plans for a business and accuracy means correct
plans for a business framework and to analysis it.
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1.5 Quality, feasibility and relevance of performance criteria
The quality, performance of the business budget case is fully depending in the financial
budget of a business because this budget decides the business plans and rules for the future
achievement and make growth of a business (Ezzamel& Stapleton, 2012). the quality of a
business budget case will be good in efficient and effective manner so that the business will
be increase with its better revenue and perform the good criteria of a business cycle with its
budget plans.
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1.6 Writing skills
Business budget case defines the business budget of an organisation (Lauth, 2014). Business
budget requires the budget performance like P&L accounts, final account for financial year
etc. generally, every business prepared its business budget because the busiess budget will be
shown to the managers and investors for investing the fund in a business.
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Conclusion
According to this unit the business budget case is defines the budget control and criteria of a
business. The business plans and strategy makes the goals of a business and set the business
budget according to the year. the budget is set with the financial year which includes all the
budget like profit and loss, balance sheet, operating budget, financing budget etc. these all
budget is prepared on the daily basis and financial year.
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References
 Abai, N.H.Z., Yahaya, J. and Deraman, A., 2016. Business Intelligence and Analytics
in Managing Organizational Performance.
 Ezzamel, M., Robson, K. and Stapleton, P., 2012. The logics of budgeting:
Theorization and practice variation in the educational field. Accounting, organizations
and society, 37(5), pp.281-303.
 Jones, S.C., Knotts, T.L. and Udell, G.G., 2012. How product development influences
product evaluation. International Journal of Marketing and Technology, 2(4), p.55.
 Oldenhof, L., Postma, J. and Putters, K., 2014. On justification work: How
compromising enables public managers to deal with conflicting values. Public
Administration Review, 74(1), pp.52-63.
Lauth, T.P., 2014. Zero‐Base Budgeting Redux in Georgia: Efficiency or
Ideology?. Public Budgeting & Finance, 34(1), pp.1-17.
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