How To Prepare Financial Budgets

< p > the so-called financial budget, including sales, production, manpower, cost and other budgets, is compiled into a budget report according to the accounting method, and the information that has auxiliary explanatory effect on the budget statements is listed. After the signing of the leading group of enterprises, the departments concerned are issued the respective departments.

The following is a detailed account of the financial budgeting.

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< p > 1, sales budgeting.

The budgetary estimate is the key to budgeting, and the sales revenue is determined, and the entire budget is determined by more than half.

Sales forecasting is influenced by the national policy orientation, the total demand of the industry and the occupation rate of the industry.

The state carries out macro regulation and control over the development of the industry, encourages the development of new high-tech industries, new energy sources and the development of industries related to the national economy and people's livelihood, and curtail the development of industries with high energy consumption, high waste and over developed industries.

When forecasting sales, we must first understand the policy orientation of the state to the industries that the enterprises are involved in, and then estimate the total annual demand of the industry, then estimate the total sales volume according to the market share of the enterprises, determine the sales structure, quantity and unit price of the enterprise, and finally generate the sales forecast report.

The sales forecast is matched with the production capacity, and the products with high marginal contribution rate are selected for sale. Finally, the sales plan matching the production is used to determine the sales budget.

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< p > 2, < a href= "http://? Www.sjfzxm.com/news/index_c.asp" > production plan < /a > compilation.

The production budget is usually compiled after the sales budget is determined. The enterprise generally refers to the scheduling plan, and the production demand is calculated according to the principle of "inventory + production volume = sales volume".

In view of the fact that the inventories of enterprises may be reserved for specific customers in the actual situation, there may still be a lot of production even though the stocks in the initial period are large.

According to the sales plan, the production plan ensures the initial inventory + current production > current sales.

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< p > the production management department calculates the maximum actual capacity according to the existing manpower, site and equipment conditions of the enterprise, and when the production capacity exceeds the production demand, the detailed production scheduling can be carried out.

If the capacity is less than the demand or the lack of special equipment, then it is necessary to consider whether to increase the equipment or increase the production capacity, or to adopt the form of commission processing to make production.

Increasing the equipment needs to estimate whether the sales profit of the product will be able to recover the investment amount and gain the expected profit in the future. If the profit generated by the total sales volume in the future can not make up for the total investment of equipment and so on, even if the marginal contribution and profit margin are higher than the commissioned processing form, it is also not desirable.

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< p > 3, < a href= "http://? Www.sjfzxm.com/news/index_c.asp" > material cost < /a > budgeting.

Generally speaking, the material cost accounts for about 70% of the total product cost. Therefore, the accuracy of the material budget in the accurate budget under the condition of sales and production determines the prediction result greatly. The material cost prediction is based on the following steps: < /p >

< p > first step: predict material quota cost.

First, we need to establish the product structure of products. Generally speaking, BOM refers to the spare parts list and its structure of products, and then calculate the fixed cost of BOM according to the market quotation of materials.

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< p > second step: according to historical data, the material loss ratio is counted.

This part is the reasonable loss in the production process or the material loss due to poor operation, which is included in the total material cost of production.

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< p > 4, < a href= "http://? Www.sjfzxm.com/news/index_c.asp" > manpower cost < /a > budget establishment.

Manpower costs are generally divided into two categories: one is the manpower cost of managers, such manpower costs are generally not changed due to changes in output, they are fixed, and they can be predicted according to the total cost of existing managers. The second category is the direct labor cost, and the direct labor cost changes with the output changes.

The estimated direct labor cost can be predicted according to the standard hourly wage rate. The standard hourly wage rate is determined according to the average wage level of enterprises. This method requires the theoretical working hours required by the technology department for the production of products.

The total direct labor cost = hourly wage rate * product production cycle * total production, such as: the hourly wage rate is 20 yuan / hour, in January, the A production volume is 1000 pieces, each product needs 100 hours, then the number of people is 1000 * 100/21.75/8=575 people, the total labor cost is 575 * 21.75 * 8 * 20=200 million.

However, because the enterprise is a continuous production process, plus some enterprises are affected by the season, even if the output fluctuation is very different in different periods, it is not easy to calculate the total labor cost simply according to the output.

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< p > 5, budget compilation.

Each functional department calculates the matching needs of funds and expenditure plans according to the sales, shipping and production plans, and adopts zero base budgeting, incremental budgeting and other methods.

The cost is generally divided into two categories: variable cost and fixed cost. The first category is related to the increase or decrease of production costs, such as utilities, labor insurance supplies, low value and easily consumed goods, pportation costs, and material consumption.

The second type is the cost that has nothing to do with the increase or decrease of output. For example, management salaries, depreciation, advertising fees, entertainment expenses, taxes and fees (excluding VAT, income tax, etc.), fixed cost budgets are usually based on historical data, and adjust the original data in particular during the budgetary period.

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< p > 6, budget report preparation.

After the completion of the budget for sales, production and expenses, the budget managers prepare the budget reports according to the accounting method, and the budget reports contain the budgetary profit statement, the budgetary assumptions, the budget notes and important economic indicators.

The budget report is finally submitted to the enterprise decision-making body. After the decision layer is signed, the various functional departments of the enterprise will be implemented according to the plan.

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< p > budget management is a necessary management tool in the process of modern enterprise operation. The perfect budget management system can make enterprises more planned in carrying out various tasks, improve the management level of enterprises, ensure the smooth implementation of business decisions, and finally achieve the maximum profit of enterprises.

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