Comprehensive Analysis and Management of Budgets and Financial Plans

This report provides a comprehensive overview of budget management and financial planning. It explores five key roles within a team and how to access budget/financial plans. The report outlines steps to clarify and measure outcomes, discusses varying initial plans, and analyzes the impact of changes on financial plans. It also examines the competencies of a team leader, methods for disseminating plan details, and the role of financial management processes. Furthermore, the report delves into cost variations, expenditure overruns, and processes to control costs, along with essential accounting principles and techniques. The report also covers books and records maintained for data analysis, offering a complete guide to effective budget and financial plan management.

MANAGE BUDGETS
AND
FINANCIAL
PLANS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Five roles to perform in a team and accessing the budget/financial plans..............................1
2. Steps to implement to ensure the clarification of budget/financial plans for measure the
outcomes.....................................................................................................................................1
3. Vary the initial plans...............................................................................................................2
4. Impact and negotiated process................................................................................................2
5. Competencies should a team leader possesses to assure about team member's performance
in respective roles competently...................................................................................................3
6. Methods to disseminate the budget/financial plan details to team members..........................3
7. Role of financial management process...................................................................................3
8. Cost variations and expenditure overruns in a project............................................................4
9. Process of implement in a project to monitor actual expenditure to control cost...................4
10a Basic accounting principles that are used to monitor and modify contingency plans to
maintain financial objectives.......................................................................................................5
10b Two accounting principles...................................................................................................5
11 Accounting techniques that are required to prepare, access, monitor the budget and
implement the agreed changes in the budget..............................................................................6
12 Books and record keep by organisation to analysis of data and information.........................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Budget is a predication of revenues and expenses over a specified future period of time. It
is used for planning and performance measurement purposes which can involve spending for
fixed assets (Van Dooren, De Caluwe and Lonti, 2012). Every organisation managing their
budgets and financial plans to get success and growth in future time period. It is helping to know
over come risks and aware for that. In the report consider on different type roles of financial
management process and team and analysis of requirement of initials plans. Beside explain about
accounting principles and describe role of leader.
TASK 1
1. Five roles to perform in a team and accessing the budget/financial plans
There is described five roles while perform in a team and accessing the budget/financial
plans -
 As a team member conduct market research to estimate about expenses and income
regarding to following year.
 There is playing role as a co-ordinator because when assessing budget that time all team
members helping to estimate and monitor performance of company's each section.
 Give contribution to overall projects objectives
 Completing individuals deliverables according to their roles & responsibilities
 Working with users to establish and meet business needs.
2. Steps to implement to ensure the clarification of budget/financial plans for measure the
outcomes
There is described about the steps which can ensure the clarification of budget/financial
plans and to measure if the documented outcomes are achievable, accurate and comprehensible -
 The first step of this plan to create plan on the accrual basis which provides accurate
information.
 In second step the information can be classified according to their departments.
 There is taking third step that all information can be reliable and presented in effective
way so understand it can achievable (Hawkins, 2015).
 In fourth step present authentic information about their project and estimate it on the
basis of future.
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 In the fifth step can measure all outcomes which can match expectations or not.
 After than if there objectives would change so continue with this plan other wise changes
mention in appropriate plan.
3. Vary the initial plans
In a project, it is required to vary the initial plans which is related to future outcomes -
 The initial plan can be different from previous plan because many new things will be
added in new years.
 The plan is based on project so information are mentioned related to project in specific
manner.
 It is developed on the basis of future necessary and estimate over come barriers and try to
reduce in advance (De Azevedo and et.al., 2012) .
 It is different from previous plan because in future possibilities will be change and plan
depended on it.
4. Impact and negotiated process
(a) There is mentioned four changes which can impact on the budget/financial plan in a project - Technological changes – New technology can impact on budget plans because it is
prepared on the basis of old technology and after adaptation new technology expenses
and incomes will be change. Economical changes – It can effect to policy and strategy of financial plan because it is
main basis of develop of budgets.
 Changes in scope and schedule – Many time companies can change their schedule and
scope so it will hamper to budget plan.
(b) When developing budget/financial managers or team members should keep scope for any
future changes that can influence of financial plan and budget. In the critical analysis process to
determine such potential change can provide assistance to negotiate such changes in budget/
financial plan. Put a dynamic strategy upon processes, also can help to negotiate such changes .
5. Competencies should a team leader possesses to assure about team member's performance in
respective roles competently
A team leader have competencies which can monitor of performance of each employees
in order to achieve targets and objectives. It will help to a team become effective communicator,
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politely with others and having technical skills. They can easily understand their work and give
their best to fulfil of requirement of any task. A good team leader can encourage and motivate to
their team members and experts in work, sharp troubleshooter and capable to handle different
situation (Parker, 2013) .
6. Methods to disseminate the budget/financial plan details to team members
There are following methods to distribute the details of budget/financial plan to team
members -
1. Project Team Meeting -
2. Individual, one on one meeting -
3. Emails -
4. Conferences Calls -
5. Video Conferencing -
6. Collaborative work management tools -
7. Role of financial management process
A financial management process is a method by which costs or expenses receive on the
project are officially known, approved and paid. There is including typical types of cost include
labour such as staff, contractors, external suppliers and consultants. There is mentioned role of
financial management process is -
 Choice of source of funds
 Evaluation of capital requirements
 Estimation of capital requirements
 Disposal of surplus
 Financial controls
There is resources required to manage the financial management process -
 Funds – It is important for financial management process in order to manage everything
because it is main resources which can help to done any type of work.
 Financial planning – Through financial planning manage all process in the manner to
manage all operational activities of a business.
 Financial controlling – There is need to control financial activities in order to meet their
objectives and targets.
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 Financial reporting – There is need to manage all process in order to record all
transaction in specific manner.
8. Cost variations and expenditure overruns in a project
There are many factors that contribute to cost variations and expenditures overruns in a
project -
 Unplanned Costs
 A Communication breakdown
 Inaccurate project estimates
 Change in project scope
 Underestimating project difficulty or complexity
 Inadequate financing
 Lack of leadership experience
 Lack of coordination
9. Process of implement in a project to monitor actual expenditure to control cost
There is mentioned process of implementation a particular project for monitor actual
expenditure to control cost -
 Prepare effective plan
 It will coordinated with the organizations involved in implementation
 Implement training
 Install the production solution
 Convert the data
 Perform financial verification in production
 Implement new processes and procedures
 Monitor the solution (Stalebrink, 2014)
10a Basic accounting principles that are used to monitor and modify contingency plans to
maintain financial objectives
There are many accounting principles which are used to monitor and modify of
contingency plans such as
1. Conservatism Principle
2. Accrual principle
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3. Cost Principle
4. Consistency
5. Economic entity principle
6. Full disclosure principle
7. Matching principle
8. Going concern principle
9. Money measurement principle
10. Materiality Principle
11. Time period principle
12. Revenue recognition principle
10b Two accounting principles
 Matching Principle – In this concept when record revenues in accounting books so that
time also record all expenses and match with incomes. In hence, inventory will be charge
from cost of goods sold at the same time that record revenue from the sale of those
inventory items. This is a assumption which is based on accrual basis of accounting. In
this accounting principle can not include cash basis accounting (Jõgiste, Peda and Grossi,
2012).
 Accrual Principle – According to this principle accounting transactions should be
recorded in the same accounting periods when they actually occurred in particular
accounting period. In the periods when there are cash flows connected with them. This is
the foundation of the accrual basis of accounting. It is essential for financial statements
which can show actual transaction of particular accounting period. It is being artificially
held up or expedited to related cash flows.
11 Accounting techniques that are required to prepare, access, monitor the budget and implement
the agreed changes in the budget
The accounting techniques are used by company to prepare different financial statement
like income statement, balance sheet & cash flow. There is mentioned different accounting
techniques -
 Trend Analysis and forecasting
 Marginal analysis
 Capital budgeting
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 Inventory valuation and product costing
 Constraint Analysis
 Budgetary control
12 Books and record keep by organisation to analysis of data and information
The company has prepared different types of books and records to analysis of data and
finial information -
 Balance Sheet
 Profit and loss statement
 Cash flow analysis
CONCLUSION
From the above report it has been concluded that budget plans are important part of any
organisation that can manage by management. The financial plan is significant step towards
attainment of objectives and goals of a company. In any company managing budgets or financial
plans is essential to track incomes and expenses of a company in order to know actual
performance and situation. Accounting principles can help to prepare budgeting plan according
to rules and regulations.
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REFERENCES
Books and Journals
Van Dooren, W., De Caluwe, C. and Lonti, Z., 2012. How to measure public administration
performance: A conceptual model with applications for budgeting, human resources
management, and open government. Public Performance & Management Review. 35(3).
pp.489-508.
Hawkins, A., 2015. Managing Budgets Pocketbook. Management Pocketbooks.
De Azevedo, R.C. And et.al., 2012. Performance measurement to aid decision making in the
budgeting process for apartment-building construction: case study using MCDA-
C. Journal of Construction Engineering and Management. 139(2). pp.225-235.
Stalebrink, O. J., 2014. Public pension funds and assumed rates of return: an empirical
examination of public sector defined benefit pension plans. The American Review of
Public Administration. 44(1). pp.92-111.
Parker, L. D., 2013. Contemporary university strategising: the financial imperative. Financial
Accountability & Management. 29(1). pp.1-25.
Jõgiste, K., Peda, P. and Grossi, G., 2012. Budgeting in a time of austerity: The case of the
Estonian central government. Public Administration and Development. 32(2). pp.181-
195.
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