ASSESSMENT 1: STRUCTURED ACTIVITES
Activity 1
Objective To provide you with an opportunity to identify and interpret the range of financial information and reports required for the organization to monitor business performance.
Activity
Answer the following questions, giving as much detail/explanation as you can to support your answer:
(a.) What reports are used at your company to monitor business performance?
At the restaurant where I work at, a few different types of reports are used to monitor the business performance such as: account summaries and balances, balance sheets, bank statements, banking summaries and business activity statements.
(b.) What are they used for?
Financial reports are used to keep track of the
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What are the benefits of this system?
The benefits would be keeping track of the business operation and being able to fix issues or recognise successful employees.
What are the drawbacks of this system?
The drawback of this system is the time to provide the information. Staff would have to stay long at the end of the day to write the daily report, which means cost for the business. Plus the time to analyse the financial reports by a specialist.
Activity 5
Objective To understand how to allocate funds according to budget and agreed priorities.
Activity
Describe3 points that are discussed/are important when considering the functioning of budgets:
1. Clear authority, responsibility, and accountability
2. Establishment of priorities
3. Collaborative, consultative decisions
In essence, explain what a budget is and what it tells us?
A budget is an itemized summary of likely income and expenses for a given period. It helps you determine whether you can grab that bite to eat or should head home for a bowl of soup. It is typically created using a spreadsheet, and it provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much you are letting go. It is an invaluable tool to help you prioritize your spending and manage your money—no matter how much or how little you have.
Large establishments will have several
Collection of information is essential to support the major functions and activities of the organisation. To ascertain this it is essential to have regular reports of the organisation and to do this you need regular financial reports and audits. A true vision of the organisation will give any management a better understanding of their situation and will thus help them to make a good viable decision.
Advantages- Less liability for stakeholders. Ability to raise funds/capital in the form of stocks as needed.
27. A budget is a specific plan of how a person or family will spend their money.
Secondly I will tell you about a budget. A budget is a plan to help you spend your money (like you have right now). This is to help you not to go into debt. If you don’t have
1. A budget is a formal statement of future plans, usually expressed in monetary terms.
A budget is how you avoid going overboard or lose track of your spending. No one wants 5-figures of consumer debt do they? Rule 1 is always budget with your NET income, which is your income after taxes.
Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.
A budget is an itemized summary of what a business’s income and expenses will be for a given period of time, while allowing the business during this period to determine if they are able purchases items based on their budget. It’s an important tool that is used by management to help prioritize their spending and manage their money and allow them to identify any wasteful expenditure, respond quickly to any financial changes and to achieve their
To have a record of how the business is running. This allows us to determine how the business is sitting financially and display what money is going where and whether there is room for improvement. Basically, it is used to anaylse the business as a whole and to determine performance for both employees and for the organisation.
Budget is the major financial and economic statement. The role of the budget is to keep track of the money coming in and the money going out. It is essential part of running any business effectively. It can help make a short and long term projections about financial situation, avert a financial crisis and plan for major financial changes.
A budget refers to a financial plan that represents the allocation of the income to various expenditure channels such as expenses, savings, and debt repayment. A personal budget is important because avoiding financial surprises and keeping financial stress down helps avoid a crisis and allows you to focus on your overall goals. You cannot avoid all risks in life but if you plan your finances to live within your means, you can avoid being kicked out of your home, losing your car and other terrible things that a solid budget would help you avoid. Knowing what you can afford is a central life skill. Unfortunately, many do not budget even though they know they should (Wagoner, 2012).
“It’s clearly a budget. It’s got a lot of numbers in it” (George W. Busch 2005). This definition of a budget can be supplemented using the Oxford dictionary, which states that a budget is an estimate of income and expenditures for a set period of time. Nowadays almost every business uses budgets and managers use them as a tool in order to set targets. In other words managers can, with the use of budgets, explain in a financial way what are the
Companies gather various information, including financial statements and other reports as a way to track their performance compared to past years. This information is also used to communicate with stakeholders about various topics depending on the reporting style. One type of such reporting is a business unit reporting where organizations gather information about separate divisions of the company to see if each division is functioning properly. There are separate accounts for each segment, so the company can examine if each division is operating at a loss or profit. By creating separate accounts, business reporting provides accurate reports on a company’s performance, based on the accumulation of all division information, for the
Budget is a comprehensive business plan for procuring and appropriating a firm’s financial resources over a specified time period.
A budget is a financial statement which is an estimate of income and expenditure of a set period of time, which may include planned revenues, expenses, assets, liabilities and