Search results
Results from the WOW.Com Content Network
If you're into reading about finances, you know that budgeting is the cornerstone of any long-term financial plan. It's the tool that gives you control over your money, allowing you to allocate...
It is also involved with long term strategic financial management, focused on i.a. capital structure management, including capital raising, capital budgeting (capital allocation between business units or products), and dividend policy; these latter, in large corporates, being more the domain of "corporate finance." Specific tasks:
The cash flow budget helps the business to determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. Conditional budgeting is a budgeting approach designed for companies with fluctuating income, high fixed costs, or income depending on sunk costs, as well as NPOs and NGOs.
Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization ...
3. Pay-yourself-first budget: Best for saving and building wealth. As the name suggests, the pay-yourself-first budget emphasizes saving and investing before spending money on other things.
The role of a financial manager often includes making sure the firm is liquid – the firm is able to finance itself in the short run, without running out of cash. They also have to make the firm’s decision in investing into current assets: which can generally be defined as the assets which can be converted into cash within one accounting ...
Justification of the budget request may be required in writing. In most cases, the manager talks with their administrative officers about budget requirements. Adjustments to the budget submission may be required as a result of this phase in the process. Budgeting is the setting of expenditure levels for each of an organization’s functions.
Zero-based budgeting (ZBB) is a response to an incremental decision making process whereby the budget of a given fiscal year (FY) is largely decided upon by the existing budget of FY-1. In contrast to incrementalism , the allocation of scarce resources—funding—is determined from a zero-sum accounting method.