Question

How can you prepare to present a budget? Provide at least three examples.

Answer 1

Preparing to present a budget can be a mind numbing exercise.

1. Time framing the budget I.e. the time for which budget is getting prepared.

2. Enter all your Fixed expenses such as rent, insurance etc.

3. Enter all your variable costs such as wages, utilities, cost of material etc.

4. Enter your expected income over the budgeted period.

5. Enter the actual income and expenses after the budget period.

6. Analyse the variances in the budgeted results and the actual results. Identify the seasonal patterns, decision of adding a new product line or discontinuing it.