Role of Budgeting in Managing Financial Resources - Uneek Clothing Corporation

MANAGEMENT
ACCOUNTING

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................8

INTRODUCTION
In different types of business entities, it is duty of managers that they have to use their
financial and non- financial resources in an effective manner. For this purpose, management
accounting (MA) plays a key role. This is defined as a form of accounting which recognize,
record and analysis information related to business with an aim to produce inner reports
(Taschner and Charifzadeh, 2020). It is used by managers in order to take suitable actions. In this
report a company has been chosen as an example for better understanding which is Uneek
Clothing corporation. This company is located in London, United Kingdom. Basically, the report
is based on analysis of different types of budgeting styles and their role in the context of
managing financial resources.
MAIN BODY
Various forms of budgeting:
Budgeting is a way of aiming at the expected income (the sum that comes into the business from
the sale of products and services) and expenditure (the money that goes out in the form of the
paying of taxes and bills) over a certain period of future. It makes an organization understand
that how such revenue and spending forecasts will help them in upcoming time to use financial
resources. This is a mechanism that is increasingly utilized by businesses to plan a variety of
budgets. In Uneek Clothing corporation they introduce this approach to plan certain budgets.
There are many forms of budgeting and some are listed in such a way as:
Static budgeting style- A static budget is a type of budget that provides information for a defined
level of revenue and expenditure. Within a business ' financial statements the values of static
financial plan can remain constant or unchanged whether sales amount or expenses fluctuate
(Talmon and Faliszewski, 2019). Having a static budget will enable companies to allocate funds
to certain operations which are supposed to stay constant within a defined time period for
accounting. With regard to the above-mentioned company, they can use this budget for activities