Public Budgeting Systems and Practices
Added on 2020-01-07
12 Pages3933 Words151 Views
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BUSINESS FINANACE1
TABLE OF CONTENTSTABLE OF CONTENTS......................................................................................................................2INTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................31........................................................................................................................................................32........................................................................................................................................................43........................................................................................................................................................5TASK 2.................................................................................................................................................64........................................................................................................................................................65........................................................................................................................................................76........................................................................................................................................................9CONCLUSION....................................................................................................................................9REFERENCES...................................................................................................................................112
INTRODUCTION Business finance is a term that encompasses a large numbers of activities and disciplinesrevolving around the management of money and other valuable assets. This is the key element forthese types of the organisation. Each and every task which perform by the organisation is need ofthe finance so they have to use effective strategies in the organisation. This is very important term inorder manage in the income and outcomes, profit and loss of the business organisation. In everybusiness enterprise, business finance play a very crucial role in order to manage the financialtransaction and keep the records of profit and loss of company (Ezzamel., Robson. and Stapleton.,2012. ). In this project report St. Emila Hospital is the organisation which is a located in the UK,purpose and objective a budget for business has been included. In addition to this traditionalbudgeting system has been also addressed. The present report is containing the budgetary systemsand how they will applicable in the St. Emila Hospital.The organisation is using the traditionalbudgetary system and what are the alternative are available for traditional is the core part of thegiven below report. Moreover, this project provides a depth understanding of alternative budgetsystems.TASK 11It helps in future forecasting for the comparing post budget with current budget for theorganisation like St. Emila. Various measure have been taken to make estimate budget variousstatistical measure should have been adopted such as regression, correlation etc. Through budgetratio analysis of various project is compared. It help in taking correct action. Standard performanceof different employee is also judge based on this criteria. Financial budget are prefer in comparisonto operational budget because it deal with monetary aspect .Various technique have been adoptedfor preparing financial report. Budget help in identifying bottleneck activity in the organization. Ithelp in allocating resources in the organization.Assumption: Various assumption have been kept in mind while preparing budget. It is veryuseful in revenue forecasting technique. Budget have much wider goal and objective. They have gothuge scope. It help in measuring performance of individual employee. It reveal financial position ofan entity. It help in identifying bottleneck activity in St. Emila. All activity are judged from zerolevel of activity.It reveal financial implication of entity such as cash flow statement, fund flow statement. It isuseful for project planning and control. It identify various cost at different level. It is useful source3
for revenue forecasting. It help in measuring performance of entity. Ratio analysis technique is beenused for comparing various budget, actual standard performance of individual could be judged bythis technique. Various manager in different entity have been following technique for cost control.Suitable remedial action could be taken from time to time. Past budged are to ignored here. Variousstatical measure should be adopted for comparing purpose. Performance analysis appraisal reporthas been prepared for this purpose. This is one of important technique for budgeting Purpose of budgeting•It is useful for resource allocation purpose.•For laying down the planning activity of entity•Useful tool for decision making$ controlling technique•It help in identifying motivational level of employee.•Useful tool for monitoring and controlling purpose.2 St. Emilia is a private hospital who is indulged into practices of delivering non urgentoutpatient treatment. Clinic delivers different type of diagnostic, psychiatric along with the clinicservices as per the requirement of patients. At present traditional budgeting process has beenundertaken by business. But on the other hand different challenges are faced while undertaking thisapproach such as many of the overheads including reception, administration, IT, utilities etc. areshared between multiple profit centres which are delivering different treatment. Implementation oftraditional budgeting approach within St. Emilia can take place with the help of proper planningwhere it indicates the actual amount of money being allotted in a set period of time for financialobligations such as rent, entertainment etc. Application of traditional budgeting in the business canallow to focus on accounting standards(Joyce., 2011.). Further, main focus is on previous level ofexpenditure and reducing its level with the motive to enhance profitability level. Managers ofEmilia can inflate their budget requires so that after the cut they are able to obtain one which theyexpect. Further, its application will support organization in deciding whether particular amount canbe spent on specific business unit or not. It is a kind of routine approach which allows business instrengthening its overall operations. This approach is most commonly employed in many publicorganizations due to the presence of framework of control. Through its applicability St. Emilia canutilize its financial resources in proper manner and in turn desired objectives of the business can beaccomplished easily. St. Emilia can easily coordinate all the range of activities and loopholes can beidentified where organization is not performing efficiently. Traditional approach to budgeting cansupport in decentralization where operations of the company can be carried out efficiently and in4
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