Explain how forecast analyzes and analyses related to budget preparation will enable you to contribute to financial bids and estimates?
Budget and Forecast
Financial forecast assists us in achieving the goals and targets of the business by analysing the important business finances along with the comparison financial statements as per the review on past history and past records which gives us the review of our business concerns. Forecasting shows the position of our business and the future predictions of what will going to be happen in future regarding the position of our business and for experiencing the rapid growth along with financial difficulties.
Contribution to financial bids and Estimates
Now lets us take the supposed condition to make clear the topic of contribution and bidding. As alway we had seen that in the major and huge organisations before takeover the another company the company has to move on with lots of process and shall taken decision by the board of directors of the company.
So to do further processing before that they have the authority to decide the bidding amount which the company wants to give for the takeover of another company because bidding procession is just like the one who forecast their future will bid the high value.
Furthermore the Estimation will support the another company and show them the approximate estimation od what the things will cost with budgeting. With an estimation we can manage the company’s expectations cannot overwhelm but can’t shoot out the the confidential information for the project success and the sound working relationship.
What can the organisation do to maintain audit trail to ensure accurate tracking and to identify discrepancies between agreed and actual allocations?
Maintenance of Audit Trail
The ability to follow records from their source of destination through their many changes or variations offers much more benefits including transparency and security of records for compliance ,maintain integrity and precision ,protection of the system from exploitation and maltreatment and the security of confidential information.
Discrepancies Between Agreed and Actual Allocations
Best financial management system and processes is must for our organization for the best utilization of resources and to track them whether the utilisation of resources shale be done accordingly or not. Efficient planning and controlling of department helps to ensure the effective utilisation of resources, sound business position, tracking of actual and agreed allocation of resources, demonstration of accountability.
Central expenditure relates to the annual allocation of budget which helps the department to consider factors like strategy and financial resources deployed, income targets ,expenditure commitments and priorities to be given to the activities of department.
When budgets are allocated individual centres then we considered agreed and actual allocation of resources because we mention about the similarities between them so it should be mentioned some of the factors of allocation of resources and its utilisation in a proper way. Like initial budget should be complied along with performance of department, outcome of budget decision, budget allocation controlled by whosever individual, monitoring expenses against budget.
List considerations when reviewing existing software and its suitability for Financial Management?
Suitability of Financial Management system
While recommending financial method it consider some of the factors which for the suits an organization-
- Cost- As the company position is looks good company shall be in a position take debt finance and according to that the company will have capacity take more debt and have more cost advantage. As we all know that debt finance is more low priced than equity finance.
- Cash Flows- Cash flows shows the assets and liabilities of the company. What the position of debt of companies going on and how much company has made investments in the market and what operations are operating, what financed by company which shows the overall performance and where the company position lies.
- Risk- The Directors of the company shall maintain a business risk of the company if the business risk becomes high then it means the operating operations are increasing and if the business risk falls then the company is in a condition to accept more financial risk.
- Control- If debt is raised then the company has no control over it and if the company’s debt raised then there is no control of change as we know that the changing condition will only be possible when the right issue shareholders will transfer their rights.
- Cost and easer of use- Mostly companies often raised debt funds as compared to equity because equity is more difficult ,time consuming and costlier.
Why is it important to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations?
Budgeting help us to create the planner of how much money should I spend and keep us ensure that atleast whenever people in need of money they should have that much amount of money to buy things and to fulfill our needs.
Circulation of budget is must to clear for every department and for each and every employee so that they should confirm regarding the amount to be spend and used on behalf of the company and to entail the list of things that cover up the entire management supervisors and subordinates too. As budget keeps an keen eye on it and accordingly employees made utilisation of resources because if comparison done between actual and estimated then the resources will be more estimated then actual and if it is not utilised as per the budgeting estimation then financial delegations are more worsening the situation and take care of it properly as per the requirements.
Briefly explain how using previous financial data can help determine allocations for resources?
The company’s run from past several years and while talking about the past records of company maintained it describes the overall performance of the company which entails the overview where the resources shall be utilised and in proper manner or not. Auditor shall come up with the records of the company maintained by the subordinates of company and picturise the position and spectrum of company which showed the organization past records regarding company’s condition what’s going on and how much funds company borrowed from the market and what the current ratio and PV ratios of company and ideal ratio and quick ratio which shows the balance of Assets and Liabilities.
Give an example of a Budget and/or budgeted statement that must be prepared in accordance with statutory requirements?