Managing Finance & HR for Sustainable Business Success

MANAGING FINANCE & HR FOR
SUSTAINABLE BUSINESS SUCCESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
(1) Objectives behind preparing budget...........................................................................................1
(b) Revenue and expense spending variance...................................................................................2
© Concern for management.............................................................................................................3
(D) Recommendation to Twin River Café.......................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Budget is the tool that is used to control expenses in the business and to monitor business
performance. In the present research study objectives behind preparing a budget is explained in
the detail. In second part of the report variance analysis is done and variance as percentage of
revenue is calculated. In the middle part of the report, main area where variance observed is
discussed in detail and reason behind elevation in expense is find out. At end of the report,
recommendation section is prepared where some recommendations are given that must be
followed to control situation.
(1) Objectives behind preparing budget
Budget is the statement in which cash flows are predicted in terms of expected cash inflow
and cash outflow. Objectives of preparing budget is given below. Predict cash flow: One of the main objective of preparing budget is to estimate cash flow
and accordingly make investment or expenditures in the business. In the business lots of
activities are performed and it is very important to make expenditure prudently so that
best use of cash can be made in the business (Ren and et.al., 2016). Allocate resources: In the budget cash inflow and outflow amount is clearly determined
and accordingly resources are allocated. In the budget cash inflow amount is determined.
In order to achieve that target specific level of performance need to be given and
accordingly resource allocation is required. Thus, it can be said that budget provide
guidance to the manager in respect to resource allocation in the business. Model scenarios: In the budget varied scenarios can be projected and accordingly
management can estimate future conditions and accordingly can prepare preliminary
plan. By doing so situation can be tackle in better way in the future time period. Measure performance: Other main objective behind preparing budget is the performance
measurement. Actual performance values are compared with the budgeted value and by
doing so performance is reviewed and it is identified whether performance was good or
bad in the business (Bogoviz and et.al., 2017). After identification of performance strict
action is taken to handle the situation and to ensure that in upcoming year such kind of
variance will not be observed in the business.
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