Business Finance Assignment - Unidate

Added on - 21 Jul 2020

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BUSINESS FINANCE
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................11. How firm can benefits from having budget and its process support developing the business:.....................................................................................................................................................12.Implementation of traditional budgeting approaches:..............................................................23. Whether traditional budgetary system is adequate to the business in its planned future form:.....................................................................................................................................................3PART 2............................................................................................................................................44. Alternative budgetary systems and benefits offers to the Unidate:.........................................45. Potential application of these methods to the Unidate:...........................................................66. Analysing the method that implement to the Unidate:............................................................8CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONIn any business, company need to make certain budgetary tools that can be used by thefirm in order to provide effectiveness in the firm. Earlier, each firm was trying to providetraditional budgetary system that assist the firm to gain the sustainable development. However,there are certain new and advanced budgetary tools that can be used by the firm which couldhelp the firm to gain the sustainable development (Rabovsky, 2012). In this report, Unidatecompany is having many issues that occurs due to the Brexit. Which are going to eliminateeffectively.PART 11. How firm can benefits from having budget and its process support developing the business:Budget is the tool which covers the future estimating of financial earnings and outflowsfor a particular period of time. The budget is the most effective tool that can be used by the firmfor smooth running of the firm's operations. With the help of budgetary tools, firm can analyseperformance and compare actual outcome with the budgeted outcome so that the firm can attainsustainable development (Bieling, 2012). The Unidate company is using the traditionalbudgeting system which is outdated technique and hence there is a strong need to adopt certainchanges as per the company's requirement so that the company could gain the sustainabledevelopment. Budget is an essential thing which uncover the financial implications of plans, toelaborate the resources needed to attain these plans and also to render a means of measuring,seeing and controlling the achieved outcomes as compare to plans. Many managers who arefamiliar with the accounting with accounting, criticize budgets demonstrating that this appliesextra consumption of efforts and waste of time, claiming that there are so many forecasting in thebudget and those forecasting are unreliable and not in practice (Ekanem, 2014). This is thereason, most of the big companies form budgets because, this emphasis the manager to foresee,to study trends and emerge essential strategies. In addition to this, budgets can stop imminentissues (Accounting Finance).There are other benefits and consequences which go beyond the financial dimension and alsohave more to do with firm management in general. There are so many benefits which are coveredin the budgeting process. Some of them are as follows:1
Budget forces managers to forecast effectively: Mangers of the firm needs to regularlyscanning business environment to instant changes which would affect the firm. Vaguegeneralization about what the feature might hold for the firm are not great forincorporating budget (What is Budgeting?, 2017). Managers is required to give theirpredictions into the certain specific forecasting manner.Budgeting urges managers and employees by rendering effective yardsticks forassessing the performance: The budgeting process can renders on Unidate' soundmotivational impact by covering managers in the budgeting process and also by renderingincentives to managers to makes efforts for grabbing the firm's pre-set goals andobjectives. This renders an effective information for the top level authority to assess theperformance of the managers and could be implemented to reward effective positiveoutcomes.Budgeting could support in the communication between diverse levels ofmanagement:Budgeting is an important tool for writing the business plan:A new businessoperations are required to demonstrates a credible business plan at the time of raisingfunding. An effective or practicable budget estimation is a most important of a firm plan.Hence, this can be observed that by implementing budget process, the Unidate can benefits itspre-set objectives and targets (Management Cost Accounting).2.Implementation of traditional budgeting approaches:Purpose of traditional budgeting: This is the tool of making the budget under whichprevious year's budget is taken as the base. Current year budget is made by doing changes to thelast year budget by adjusting the expenses which are based on the inflation rate, consumerdemand, market situation and so on. Under the traditional budgets, there is a requirement to bejustified that are over and above the previous year's budget. Under the traditional budgetingsystem, incremental budgeting is the perfect tool in the business.Advantages of traditional budgeting:Implementation: This is an easy to implement. In addition to this, this can be framedfaster because not diverse changes are needs in the last years budget. This eliminate thewastage time.2
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