In the context of the instability of the dynamic world of the economy and the growth of competition, enterprises face the need to form financial control, analyze and plan cash flows. One of the ways to carry out such operations is to draw up a company's budget, which will also increase profitability, ensure solvency and financial stability.
Instructions
Step 1
Start your budgeting by analyzing and forecasting sales. As a result, it is possible to form a relationship between the sale of products and the increase in production with plans for expanding the enterprise and investment. After that, it is necessary to plan stocks and calculate production volumes relative to them, comparing with warehouse capabilities. Thus, a budget for the company's inventory and production will be drawn up.
Step 2
Determine a budget for commercial and administrative expenses. They are associated with the cost of selling products, the size of the management staff and the cost of office needs. In this case, it is necessary to take into account fixed costs and variables that will depend on the volume of production.
Step 3
Budget your supplies. For it, the initial data will be the values adopted in the budget for production and inventory, as well as when forecasting sales. Thus, take into account the amount of raw materials, materials and components that must be delivered to the warehouse of the enterprise within a certain time frame. After that, determine the consumption of basic materials, which is presented in the form of a table of the ratio of the supply budget and production. This will allow you to calculate the planned cost of production.
Step 4
Calculate the amount of wages depending on the volume of production. Determine the indirect production costs that are required to maintain production, but do not affect the cost of production.
Step 5
Analyze the collected data and budget the income and expenses of the enterprise. Thus, predict the profit or loss from the activity according to the accepted forecasts. If the budget showed a loss, then it is necessary to adjust the initial data so that they meet the needs of the organization. By bringing together all the indicators, you will receive the final budget of the enterprise.
