manage budgets and financial plans Essay

5087 Words Nov 15th, 2013 21 Pages
ASSESSMENT ACTIVITY 1.

It is crucial for any business organisation to collect, file and maintain accurate financial records. Without the correct financial details in order a business would be working blind and therefore could not suitably deal with future plans and orders if they do not know actually how much is needed to keep the business running appropriately.

A lack of updated and in-depth financial records are said to be one of the fundamental factors of why many small businesses fail. A recent survey of accounting firms reported over 50% of the accountants surveyed rated their small business clients accounting records as average, inadequate or non-existent.

There are some very important reasons why it is vital for a
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The supply of inventory in JIT is delivered just when it is needed for a process thus eliminating holding costs of inventory.

SMART Targets, set yourself a target and make sure that it is Specific, Measurable, Attainable, Relevant, Timely. Wiki
SWOT analysis, compare the Strengths, Weaknesses, Opportunities and Threats that face the team, this will help them to position themselves and ensure that they have the most positive outcomes.
PEST Analysis, analyse the Political, Economic, Social and Technological aspects around your team (You can also include Environmental and Legal to make PESTEL). This may or may not be relevant, but it is popular and useful.
Boston Matrix, if you are in commerce you will no doubt have heard of this. Again, not sure if it's relevant, but it might be to Q2 or 3 if not this one. Wiki

You must ensure that you can prove that changes are necessary, changing a budget can be a big thing. Research exactly where you propose the money should go, what benefit would come from the changes, what are you cutting? What are you increasing spending for? You will need to prove that cuts are in places that need less funding, perhaps inelastic processes (whereby the amount of money they cost has little effect on the outcome) and that extra spending is required, perhaps to increase profit, gain economies of scale in that area or to stop it

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