Google Financial Case Study
In fact, if Google did not have a well-structured budget, they would not be able to properly manage their investments. An outcome such as this will possibly trigger problems with the profits, accountably, assets and liabilities. Properly maintaining budgets and tracking the expenditures of each department is essential to the success of a company. Another reason Google needs to maintain and prepare a budget, is because this helps them to identify company weaknesses, provide a road map for improvement and help to analyze their financial situation, which in turn will help the company to provide their investors a clear picture of how well their investments are performing. Below is my financial budget proposal plan for Google. First, I would identify the major areas of the budget that need emphasis. The three main aspects I would focus on would be the cost of materials, labor costs and the non-labor costs, i.e.
Capital gains and investments. Focusing in these three areas will provide me with the best information on how to allocate monies for the projects I would like to complete as well as allow the investors to see how well the company is performing on the investment returns. Through my budget I would like to help keep the company from the misappropriation of …show more content…
The variance method is used when the revenue is greater than the budget and also when expenses are less than the budget. This is especially useful because Google revenue tends to fluctuate. In the event that my company is facing a financial crisis due to bad business practices that are significantly offset our budget, I would call an emergency meeting. At the meeting, I would immediately inform all managers that effective immediately all spending will be done with great discretion. After that, I would work diligently to come up with a good action plan. The type of budgeting plan I would use would be incremental budgeting. I chose this one because this method would allow me to manipulate my current budget by plugging in different numbers and help me to visualize ways to improve what would best help the company resolve the financial issues. Incremental budgeting is a flexible and easy method of budgeting. This benefit alone means that my workers and managers would be able to quickly adapt to the plan. Another benefit of incremental budgeting is that the cost of this plan is very minimal. This is extremely important because the company is trying to save money not lose