Company Budgeting Forum
Forum : What is Budgeting ? Can you describe in a short way about Budgeting for the
company.
Answer : Budgeting or budget can be defined as the process of preparing detailed projections
using revenue and expenses of future amounts over a specific period of time. Budgeting itself
help the company to plan their next moves (as if in decision making) and controlling
company expenses.
Forum : What do you think about forecasting and what is the benefit? Could you explain
about this?
Answer : Forecasting as in financial forecasting tells whether the company is headed towards
right direction, estimating the amount of revenue and income that will be achieved in the
future.
The benefits of forecasting are including: improved cashflow planning, informed
management decision-making, supporting in raise the company’s finance, time saving, error
reduction and enhanced performance monitoring.
Forum : can you explain about master budget ? you can read from the material that i give
you.
Answer : Master budget is a representation of the grand plan of action for an upcoming
period that can translates the organization’s short-term objectives into action steps. It
culminates in preparation of a set of pro-forma financial statement, communicates to
employees and managers alike the expectations of top management and helps coordinate
subunit activities.
Forum : Please explain briefly short about how the strategic at the company related to
budget?
Answer : Strategy and budgeting is complement each other in a company. With good
budgeting systems, it will help the company reach their strategic goals (either short-term,
long-term goals or both) by allowing management to plan and control major categories of
activity such as revenue, expenses and financing options.
Forum : What is Budgeting ? Can you describe in a short way about Budgeting for the
company.
Answer : Budgeting or budget can be defined as the process of preparing detailed projections
using revenue and expenses of future amounts over a specific period of time. Budgeting itself
help the company to plan their next moves (as if in decision making) and controlling
company expenses.
Forum : What do you think about forecasting and what is the benefit? Could you explain
about this?
Answer : Forecasting as in financial forecasting tells whether the company is headed towards
right direction, estimating the amount of revenue and income that will be achieved in the
future.
The benefits of forecasting are including: improved cashflow planning, informed
management decision-making, supporting in raise the company’s finance, time saving, error
reduction and enhanced performance monitoring.
Forum : can you explain about master budget ? you can read from the material that i give
you.
Answer : Master budget is a representation of the grand plan of action for an upcoming
period that can translates the organization’s short-term objectives into action steps. It
culminates in preparation of a set of pro-forma financial statement, communicates to
employees and managers alike the expectations of top management and helps coordinate
subunit activities.
Forum : Please explain briefly short about how the strategic at the company related to
budget?
Answer : Strategy and budgeting is complement each other in a company. With good
budgeting systems, it will help the company reach their strategic goals (either short-term,
long-term goals or both) by allowing management to plan and control major categories of
activity such as revenue, expenses and financing options.
