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Chapter 4: The Ins And Outs Of Corporate Budgeting
Corporate budgeting is important to any business entity where the financial position of the company dictates the strategies, motivations and achievements that are to be chosen.
The following are some of the issues that most corporate budgeting exercises encompass:
The designing of the budget and then the processes involved in informing the various levels within the company structure which may include all subsidiaries and linked business units.
It also provides the clarity and consistence, though in quite general terms regarding procedures, responsibilities and time lines that would have direct connections to the corporate budgeting exercise.
With the corporate budgeting in place there is a definition of strategy success factors and organizational performances indicators in place that can better gauge the overall condition of the company’s performance. The methodology used can also be assisted using the relevant software, especially when implementing budgeting software.
There is also the possibility of being able to have follow-up process added into the general outline to analyze and variances that may be evident.
The definition of revenue, cost and balance sheet items will be able be better observed through the more complete corporate budgeting tools thus providing information that is vital for future consideration.
The cycle time which would ideally include the streamlined consolidation procedures will also be dealt with and worked out through the budgeting process, all of which is much simpler and more effective and ensures the eventual smoother running of the business entity.
There are a number of software programs available that can assist in making the whole process a lot easier, as the more recent software take into account the complexities arising from the reconciliation problems of streamlining spreadsheets and workbooks reporting structures. This will be helpful when clearer overviews are needed to make accurate projections for the company.
Chapter 5: Including Social Business Budgets In The Plan
Every business needs a social business plan template, and this will vary according to the business style and direction the business is to take. For some the use of social media tools would be an added advantage while for others having the budget to have trainings conducted periodically on the social business working s presents a better option. Either way any use of budget for the social business platform should ideally bring forth positive results.
The Social Side
Budget planning should be in line with the idea of providing all the assisting skill to its work force to ensure the business entity is made into a successful one.
As social strategies have proven to meet the most integral part of the business direction, there is a definite necessity for this exercise to be included in the budgeting plan.
The normal processes would include the maturing of the work force structure in accordance with the social business style thus creating a better and more functional force as the business entity grows from strength to strength.
The budget should ideally comprise of the following important component which are the internal soft costs which is from staff, education and training.
The R&D sectors also get the relevant attention for the budgeting allocations. When it comes to addressing customer issues there should be allocations for marketing, blogger outreach and other assisting tools that would help the business entity understand the customers grievances if any better.
As for the technological advancement, the budgeting provided for here should create the possibility of having social media managements systems in place or any other community platforms where engagement and interactions can be done is a proactive way.
If there is an advanced social business budget in place, then other elements can be addressed such as the shift of resources with the social business initiatives that have to this point been done internally, to using external assistance such as services and agencies that promote such facilities.
Chapter 6: Impacts Of Debts On Business Budgets
It may be rather surprising to note that there are some debts that are considered “healthy” debts within the frame of a business budget. These may include debts incurred during the course of setting up the business which are normally looked upon as investments but are none the less debt incurring costs.
In the effort to keep these debts from becoming the focal point of the revenue earning desired there are ways to limit its impact. When deciding to start a business, the individual should take into account all the different aspects that the business would have to focus on, and all the relevant tools it would need to do so effectively and efficiently.
Once there is a clear outline of such needs then sourcing for these without creating huge impacts on the actual budget available for the business would be a good start.
Looking into possibilities of acquiring used supporting materials and tools, cheaper yet effective ways of advertising, working out of a smaller and less fancy environment, keeping overhead to a minimal, looking into tax reliefs and rebates are just some of the actions that can be taken.
All these should be able to contribute positively to keeping the initial start up cost lower, thus providing a healthy cash flow that would allow the business entity to start off on a better footing.
If this is not possible based on the investments necessary to get the business going then other options need to be explored such as working the business entity to its optimum so that the investments will be justified and the debts incurred will not be considered a bad business tactic. Finding ways to maximize the business engine to produce the desired revenue at a much quicker pace will also eventually allow the debts to be cleared or brought to a minimum thus preventing it from eating into the profits made.