There are many budgets that accountants and business people like to use. Three of the business budgets that are most common and that are used often, especially in my business are the sales,expense and purchase budget. A sales budget is a plan of a business sales outlook based on the number of units that are expected to produce within a specified time period. Expense budgets are non- manufacturing departments such as the sales,marketing,accounting, engineering, and facilities department. A purchase budget is the amount of inventory that a company must purchase during each budget period. The expense relies on the sales budget because needs to make sure if it is able to make more or less of the product they are selling. The first thing a business person needs to do is to build a purchase budget. The purchase budget is the most important budget out of the three especially for new companies or businesses. The purchase budgets job is for it to show what the company is spending and what individual assets it is purchasing. The purchase budget also sees if the company is in debt or is making a profit off of what it is selling.
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A company relies on their expense budget for two things. The first thing that the companies look of is how much they are spending on individual expenses by the quarter or by the year. The next thing that they look at is what things or products are being spent on the most money of. Autoroma has 3 expenses that are very important to us which are the salaries of the employees,the supplies and the insurance. Our employees need to be paid because they are manufacturing the product and are doing other things like shipping and packaging. The supplies that are needed to make the product are very important in expense because we are looking for the parts that we need at the cheapest cost so that we can sell it more than we bought the piece and make profit off of the
A company relies on their expense budget for two things. The first thing that the companies look of is how much they are spending on individual expenses by the quarter or by the year. The next thing that they look at is what things or products are being spent on the most money of. Autoroma has 3 expenses that are very important to us which are the salaries of the employees,the supplies and the insurance. Our employees need to be paid because they are manufacturing the product and are doing other things like shipping and packaging. The supplies that are needed to make the product are very important in expense because we are looking for the parts that we need at the cheapest cost so that we can sell it more than we bought the piece and make profit off of the