University Finance: Budget Management, Variance Analysis, Reporting

This document provides a comprehensive overview of budget management, addressing key aspects such as budget monitoring, variance analysis, and financial reporting. It explores the process of budget preparation, emphasizing the use of past budgets and the importance of regular monitoring. The assignment delves into the significance of management reports in highlighting favorable and unfavorable variances, and the approaches for managing the budget. It also details the essential components of a budget, including profit and loss accounts, balance sheets, and cash flow statements. The document references key academic sources, providing a well-structured and informative guide to the principles of budget management.

Managing finance with budget

Table of content
INTRODUCTION...............................................................................................3
QUESTION 8.......................................................................................................................3
Monitoring of budget after approving..........................................................................3
QUESTION 9.......................................................................................................................3
Report of budget provided by management team about the favorable or unfavorable
variance........................................................................................................................3
QUESTION 15.....................................................................................................................3
Approaches for managing the budget..........................................................................3
QUESTION 16.....................................................................................................................4
Things to be included in the budget.............................................................................4
CONCLUSION....................................................................................................................4
REFERENCES....................................................................................................5

INTRODUCTION
In order to manage the finance of to predict the need of finance in future a budget
related to the finance is drafted, so that organization makes an idea about the needs of
finance in future or can make proper strategies regarding that.
QUESTION 8
Monitoring of budget after approving
Budget is the estimated numerical expression of inflows and outflows of the
organization Kepi, 2017). For preparing the current budget company observe the past
budgets and on the bases of it new budget is prepared as all the budgets are interlinked.
By going through the pattern of budget current budget is prepared. As all the
organizations has decided their time to monitor the budget as per their requirement.
QUESTION 9
Report of budget provided by management team about the favorable or unfavorable
variance.
After preparing the final budget, management team have to provide a report on that
budget to the senior level officers, explaining all the estimation or result they have taken
or derived from that budget (Larsen, 2017). As all the proper information regarding
the financial condition should be there in the report. As what they have estimated in the
budget or budget is giving the positive result or not. In budget we can calculate many
variances related to the production, price, sales and overhead. As by calculating these
variances we get to know about the favorable or unfavorable results. If variances are
unfavorable than it will affect the company growth and if variances are giving favorable
results than the company is in progress.
QUESTION 15
Approaches for managing the budget
There are two approaches from which an organization can manage its budget by
using various approaches like customer research approach or competitor research

approach (Jimenez, 2017).As before drafting the budget a proper review will be taken by
management team in order to collect all the information. AS team will the operating
process production capacity, and analyzing the working efficiency of the employees in
order to improve the current condition of the organization.
QUESTION 16
Things to be included in the budget.
Main part of the budget is profit and loss account, balance sheet, cash flow statement.
Profit and loss account is the account the books of organization in which all income and
gains are credited and all losses and expenses are debited, in order to show the profit of
loss of the organization for a period of time (Dang, Momtez, Zimmerman and
Nhung, 2017). Balance sheet is the statement of assets and liabilities of a business at a
particular point of time. Cash flow statement shows the changes in cash balances during a
period of time. By all this three statement organization can predict their position in the
market or can see that whether organization is developing or not.
CONCLUSION
As from the above answers it is clear that drafting a budget is important part of the
organization. As budget shows the financial position, favorable, unfavorable variances of
the organization.

REFERENCES
Books and Journals
Dang, N.B., Momtaz, S., Zimmerman, K. and Nhung, P.T.H., 2017. Effectiveness of
formal institutions in managing marine fisheries for sustainable fisheries
development: A case study of a coastal commune in Vietnam. Ocean & Coastal
Management.137.pp.175-184.
Jimenez, B.S., 2017. When Ties Bind: Public Managers’ Networking Behavior and
Municipal Fiscal Health After the Great Recession. Journal of Public Administration
Research and Theory, p.muw069.
Kepi, J.H., 2017. The Role of EU Funds in Improving Albania’s PFM Reforms (2014-
2020). Mediterranean Journal of Social Sciences.8(1).p.192.
Larsen, J.K. Et.al 2017. Project Management and Scheduling through National Project
Management Phases in Government Construction Agencies. International Journal of
Information Technology Project Management (IJITPM).8(1).pp.1-16.