Managing Finance: Importance of Budgeting and Variance Analysis

FINANCE

EXECUTIVE SUMMARY
Finance is the most important thing which is being used within the company. This is the
money which is being used in the company for running and operating the business. Thus, for the
business it is very necessary for the company to manage the finance so that the company can
manage the work in effective and efficient manner. Thus, with help of this report it has been
discussed that budget making is important and for this budget is prepared. Then the actual
performance is compared with the actual performance and the variance between them is
calculated. This variance calculation is helpful for company in understanding the areas which are
of concern for the company and needs to be improved.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Objectives of preparing budget..............................................................................................4
Report showing variance of company....................................................................................4
Variance concerned for management.....................................................................................5
Advise in support of objectives..............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7