Business Finance Assignment | Budgetary System

BUSINESS FINANCE
ASSIGNMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Task 1 Benefit of having budget.................................................................................................1
Task 2) Application of traditional budgeting approach and areas need to be addressed ...........2
Task 3) Analysis of traditional budgetary system in future form...............................................4
PART 2............................................................................................................................................5
Task 4) Alternative budget systems and their benefits...............................................................5
Task 5) Application of the methods and problems.....................................................................6
Task 6) Appropriate method to be applied..................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The business finance is a wide term that contains a number of activities which must be
followed for efficient management of available assets and funds with the business. In this
management of funds, the most essential and useful activity is to make budget plan. The budget
planning is a process in which the organisations make a pre planning of various activities in
which the funds will be invested (Lukka and Modell, 2010). Thus, it helps in a great way to
manage the assorted financial activities of the firm. The present report is based on Leeworthy
Ices Ltd. which is a manufacturer of organic dairy ice cream. The report has talked about
organisation's new plan according to which issues related to budgetary system have been
discussed. The report will have the discussion about new system of budget that can be
established by the organisation so that they can work on it accordingly. In addition to this, the
approaches to the budgetary system have also been studied so that a correct evaluation can be
done and applied by mentioned firm after Brexit to reduce its impacts.
PART 1
Task 1 Benefit of having budget
The budget planning in any company provides a number of benefits that which can give
the firm a new dimension for thinking wisely about managing their funds. Through a systematic
planning of assets, the organisation can do allocation of finance in more productive areas and
reap substantial benefits from it (Garrison and et.al., 2010). In context of Leeworthy Ices, the
budget planning has been a useful tool since its inception by making a plan of investments and
expenses in effectual way. This has also aided the cited firm in taking beneficial decisions by
having a look over all the possible profits as well as risks associated to decisions. Further, the use
of budget has also helped in process of developing the business by providing a lot of
opportunities. These benefits and contribution of budget process for said company can be
delineated in the below section:
 Act as a road map: The said organisation makes various plans and strategies to travel the
journey of doing business. In this objective, the budget plan acts as a road map for the
firm according to which company use to move forward (Weißenberger and Angelkort,
2011). It gives an idea about the steps that must be taken in context of any significant
decision, overview of resources required for it along with a proper expenses and invest
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