Budgeting for Twin Rivers Café

Financial
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Table of Content
EXECUTIVE SUMMARY.............................................................................................................3
TASK...............................................................................................................................................3
A. Objective of preparing a budget for Twin Rivers Café..........................................................3
B. Report showing the company’s revenue and spending variance for July along with
explanation...................................................................................................................................4
C. Activity of variance should be of concern to management.....................................................5
D. Advise and Suggestions to Twin Rivers Café........................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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EXECUTIVE SUMMARY
This report summarises the budget which include the various financial aspect of Twin
Rivers Café and it is prepared to evaluate the overall performance and improve as well. In
addition, it includes the comprehensive statements between planned or actual figures of sales,
expenses and profit of selected organizations. It further includes the various activities and
recommendations for the improvement in the operational activity and financials data.
TASK
A. Objective of preparing a budget for Twin Rivers Café
Budget is the report which is used by the organizations in order to estimate the expenses as well
as revenue for the period. It includes the various costs which required for the projections of sales
as well as revenue for the different time period (Finance and Network, 2013). Budget is an
internal tool which is used by the managers to manage their financials aspect in aspect of Twin
Rivers Café. Budget report does not require disclosing in front of external parties such as
stakeholders. In context of organizations, it is used by the financial experts who have expertise in
this field and able to control spending from the non-valuable activities and prepare different
budget. Basically it is used to compare the estimated value with the projected once. It helps the
managers to formulate various strategies in order to develop plans, set goals & targets, monitor
the progress etc. It is also beneficial in minimising the overall production cost of the company
which maximise the productivity as well as profit margin. Company able to keep track their
financials records and formulate their strategies accordingly which is useful in long-term
planning regarding operating expenses. There are some common objectives which are disused
below:
Measure performance: It is the common objective of every organizations of generating
budget is to measure the performance of individual worker. It is very difficult to measure
because workers are trying to modify budgets to accomplish their individual goals.
Predict cash flows: It is very essential tool for the growing organizations which get
revenue from seasonal products (Gago-Rodríguez and Purdy, 2015). These companies have a
hard time to predict how much revenue they generate in the future and what issues they face
related to the cash.
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