Understanding Business Finance and Budgeting Techniques

Running head: BUSINESS FINANCE
Business finance
Name of the student
Name of the university
Author’s note

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BUSINESS FINANCE
Executive summary:
The topic describes the business decisions which have been implemented by the
company through the implementation of the auditing techniques and the whether the new
techniques will be implemented by the company in order to sustain the progress of the
business. Hence the company could be helpful in making the proper business decisions in the
company.

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BUSINESS FINANCE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Part A.....................................................................................................................................3
Purpose of budgeting:........................................................................................................3
Budgeting process..................................................................................................................4
Application of traditional budget approach:..........................................................................5
Appropriateness of the traditional budget technique:............................................................7
Part B......................................................................................................................................8
Understanding the different budget methods:........................................................................8
Applications of the method in the business;..........................................................................9
Which of the process company could implement:...............................................................10
Conclusion................................................................................................................................11
References:...............................................................................................................................12

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BUSINESS FINANCE
Introduction
The study deals with the understanding of preparing the budgeting concept and the
budgetary policy which Snappy Drinks Plc. Company will be following in the business.
Apart from this the topic also deals with the budgeting policy which the company follows
regarding to improve the business model. Apart from this the topic also discusses about the
traditional budgetary business models which will be helpful for the company to plan the
future cost management for the specific business and the products and procedures which the
company would like to follows in the future. Lastly study deals with the alternative budgeting
systems like zero based budgeting, activity based budgeting and rolling based budgeting and
the implication of those methods in real time with a suitable conclusion at the end.
Discussion
Part A
Purpose of budgeting:
The overall purpose for the budgeting is to plan the different phrases if the business
operations, coordinate the activities of the business departments of the firm and to ensure the
effective control of the business. Hence in order to accomplish the objectives the budget aims
at attaining the following objectives –
1. To prognosticate the firms future sales of the business, production cost and other
expenses in order to earn the desired amount if income and minimize the possibility if
the business losses (Weetman 2010).
2. The forms future financial condition and future need of the firms are to be funded and
to be employed in the business with a view to keep the firm solvent.
3. To coordinate the composition of capitalization in order t ensure availability of funds
at the common objectives.