Budget Plan
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A Budget Plan is a plan for a budget.
- Context:
- It can include Expected Income and Expected Expenses.
- It can be created by a Budget Planning Process.
- …
- See: Project Plan, Budgeting Task.
References
2023
- chat
- Q: What is a budget plan, and what is the process to create one?
- A: A budget plan is a document that outlines the expected income and expenses of an organization over a specific period of time. It is an essential tool for financial planning and management that allows organizations to allocate resources effectively and monitor their financial performance.
2023
- chat
- Q: what are the contents of a budget plan?
- A: The contents of a budget plan can vary depending on the organization and the purpose of the plan, but in general, a budget plan typically includes the following elements:
- Executive summary: A brief overview of the budget plan, highlighting the key assumptions, objectives, and outcomes.
- Revenue forecast: A projection of the expected income for the period being planned, including sources of revenue such as sales, grants, and donations.
- Expense forecast: A projection of the expected expenses for the period being planned, including fixed and variable expenses, categorized by different areas of the organization.
- Cash flow statement: A statement that shows the expected inflows and outflows of cash for the period being planned, taking into account the revenue forecast and expense forecast.
- Budgeted income statement: A statement that shows the expected revenue and expenses for the period being planned, including both operating and non-operating expenses.
- Balance sheet: A statement that shows the financial position of the organization at the end of the period being planned, including assets, liabilities, and equity.
- Variance analysis: An analysis that compares the actual results with the budgeted results, highlighting any differences and explaining the reasons for them.
- Assumptions and risks: A section that identifies the key assumptions that underlie the budget plan and any potential risks or uncertainties that could impact the plan.
- Performance measures: A set of measures that will be used to track the performance of the organization during the period being planned, such as revenue growth, profit margin, and return on investment.
- In summary, the contents of a budget plan typically include revenue and expense forecasts, cash flow statements, budgeted income statements, balance sheets, variance analysis, assumptions and risks, and performance measures. The budget plan is an essential tool for financial planning and management that allows organizations to allocate resources effectively and monitor their financial performance.
2015
- http://www.principlesofaccounting.com/chapter21/chapter21.html
- QUOTE: … The budget construction process will normally follow the organizational chart. Each component of the entity will be involved in preparing budget information relative to its unit. This information is successively compiled together as it is passed through the organization until an overall budget plan is achieved. But, beyond the data compilation, there is a critical difference in how budgets are actually developed among different organizations. Some entities follow a top-down, or mandated approach. Others utilize a bottom-up, or participative philosophy. …