shinwari saltish
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shinwari saltish Presentation Transcript

  • 1. Budgeting proceduresCase study on SHINWARI SALTISH restaurant
  • 2. budgeting Budgeting refers to the setting of theexpenditure with respect to theorganization’s core function which isresponsible for the overall functionality ofthe firm.
  • 3.  Budgeting is the setting and allocation ofthe capital which is then used in theproper way to achieve the set ordesignated targets of the firm.
  • 4.  Revenue Estimationperformed in the executive branch bythe finance director, clerks office, budgetdirector, manager, or a team.
  • 5.  Budget Call issued to outline thepresentation form, recommend certaingoals. Budget Formulation reflecting on thepast, set goals for the future and reconcilethe difference.
  • 6.  Budget Hearings can includedepartments, sections, the executive, andthe public to discuss changes in thebudget.
  • 7.  Budget Adoption final approval by thelegislative body. Budget Execution amending the budgetas the fiscal year progresses.
  • 8. Budgeting Procedure Update budget assumptions. Note available funding. Step costing points.
  • 9.  Create budget package. Issue budget package. Obtain revenue forecast. Obtain department budgets
  • 10.  Validate compensation. Validate bonus plans. Obtain capital budget requests Update the budget model.
  • 11.  Review the budget. Process budget iterations. Obtain approval. Issue the budget Load the budget Verify loaded budget
  • 12. TYPES OF BUDGETS Operational budget - An operationalbudget is the most common type ofbudget used. It forecasts and tries topretty closely predict yearly revenue andexpenses for a business.
  • 13.  Cash flow budget - A cash flow budgetdetails the amount of cash you collect andpay out. This is generally tallied on a monthlybasis, but some businesses tabulate thisweekly. In this budget, you track your salesand other receivables from income sourcesand contrast those against how much youpay to suppliers and in expenses. A positivecash flow is essential to grow your business.
  • 14.  Capital budget - The capital budgethelps you figure out how much moneyyou need to put in place new equipmentor procedures to launch new products orincrease production or services. Thisbudget estimates the value of capitalpurchases you need for your business togrow and increase revenues.
  • 15. Budget Planning Models Budget models are financial projectionsthat allow companies to plan for futurecash inflows and outflows. Budget planning models support generalbusiness operations by setting financialgoals for each operational department.
  • 16.  Budget models help companies determinehow much income they must earn to payfor the expenses generated from normalbusiness operations. Many companies have capital planningbudgets to determine if any majorexpenditures for equipment or productionfacilities are needed.
  • 17. Shinwari saltish restaraunt
  • 18. Shinwari saltish restaurantA restaurant of namak mandi dishes ofpeshawer first opened in blue areaislamabad in 1992 .Founder and owner of this restaurant wasNASIR KHAN SHINWARI(late).Owner of Shinwari Saltish now is YOUSAFKHAN SHINWARI.
  • 19.  SHINWARI SALTISH came out to be atrend setter in the taste of people ofislamabad. Soon it became symbol of peshawernamak mandi dishes. It has two branches, first in blue area andthe other in rawalpindi saddar.
  • 20.  Main dishes of SHINWARI SALTISH are Mutton karahi Mutton tikka Dumpukht Kaabli pulao Khadda sajji Patta tikka Chicken chargha etc.
  • 21. Mission statement Shinwari Salishs goal is to multi-facetedsuccess. Our first responsibility is to thefinancial well being of restaurant. Thisgoal can be achieved by considering on Effects of product on health and wellbeing of our customer And the high quality of fairness attitudeand understanding amongmanagement, staff and customers.
  • 22. Anticipate it’s Costs In the restaurant, budgeting is often a game of balancingcosts and income. In fact, a budget is much like a profitand loss (P&L) statement extended over a longer period oftime. Shinwari saltish account for the following costs in itsannual budget: Rent or mortgage payments TaxesLabor/payroll Utilities Loan payments Operational supplies Repairs and maintenance Marketing Training Food service
  • 23. Restaurant expenses There are many expenses involved inoperating a restaurant: Cost of goods sold Occupancy cost Payroll or labor cost. Operating expenses
  • 24. BUDGET PROCEDURES OFSHINWARI SALTISH Shinwari Salishs include all operatingcosts, and is based on expected incomefor the year. An annual budget gives it goals to reachand limits to beat. The budget is alsoessential to plan for the restaurantsfuture spending.
  • 25. Plan by Month or Period Shinwari saltish use a system of 12-month or 13 four-week periods to tracktheir annual budget. By breaking thebudget down into these types of sections,it is easier to see when money is movingin and out of the restaurant.
  • 26. Determine it’s Projected Sales Ascertaining its projected sales, alsoknown as a sales forecast, helps it tofigure out how much restaurant will makein sales during a given period.
  • 27.  Shinwari saltish plans to spend about 30percent of its budget on food, 25 percenton labor, 10 percent on rent, and 3percent on utilities. The rest goes in smallparts to operational expenses, marketing,taxes, maintenance and other variablecosts.
  • 28. Swot analysis Strength It’s taste is its biggest strength Its dishes are pure and clean It’s dishes are just prepared by salt, noextra spices are added Shinwari’s do not compromise on tasteand quality of food.
  • 29.  Weakness It has a poor management system. It’s short of capital to expand itsregistered branches unfortunately.
  • 30.  Opportunities Offer To open shinwari saltish in U.A.E. Offer had came from a multinationalcompany to start shinwari in partnership
  • 31.  Threats Misuse of the brand Competitors expanding their setup. Increasing rate of meat.
  • 32. Recommendations Keep an eye on your profit and loss Conduct inventory consistently Portion food correctly Keep record of all waste food Train employees to care Work on sitting arrangements.
  • 33. SHINWARI SALTISH RESTATAUNTBUDGETING REPORTYEAR 2012.January February March April May JuneSales Budgeted Actual Budgeted Actual Budgeted Actual Budgeted Actual Budgeted Actual Budgeted ActualFood and drinks 2,000,000 2000000 2,000,000 1800000 2,000,000 1800000 2,000,000 2000000 2,000,000 2500000 3000000 3000000Total SalesCost of Goods Sold (COGS)Food and drinks 1400000 1400000 1400000 1400000 1400000 1200000 1400000 1200000 1500000 1800000 2000000 1800000Total COGSGross Profit 600000 600000 600000 400000 600000 600000 600000 800000 500000 700000 1000000 1200000LaborManager SalaryEmployeesOvertimeTotal Labor 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000Occupancy ExpensesRent/Mortgage 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000 120000Property TaxInsuranceUtilities 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000Waste Removal 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000Water and Sew er 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000Equipment Repairs 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000Building UpgradesIndirect ExpensesPayroll 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000Other insuranceMarketing 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Training 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500Supplies 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Other 411500 411500 411500 411500 411500 411500 411500 411500 411500 411500 411500 411500Net Profit/Loss 188500 188500 188500 -11500 188500 188500 188500 388500 88500 288500 588500 788500
  • 34. Thanx…. By JAVARIA MAZHAR