Budget process 2012<br />
Why we are here ?<br />Not to discuss how it used to be, but how it would be!!!<br />We need a Change !<br />Just to be on...
Reasons to have a budget in the company.<br />Budget is a very useful tool to estimate financial needs<br />Budget can hel...
Sad but true…<br />or a couple of words on theory<br />
Center of financial responsibility (CFR)<br />CFR – A division or unit of an organization for which a manager is held resp...
We are a management team<br />Profit center<br />Investment center<br />Costs center<br />Operations department; Purchases...
Process of management<br />Targets<br />Planning<br />Execution<br />Control / regulation<br />Motivation<br />
How it’s work<br />Strategic drivers<br /> Management   decisions<br /><ul><li> Operations decisions
Budget expectation</li></ul>KPIs definitions<br />Planning<br /><ul><li> Budget planning
Budget approval</li></ul>Accounting<br />- transactions booking<br />Variance analysis<br /><ul><li> analysis of deviation...
Profit and Losses statement & Cash Flow<br />P&L is a combination of 2 parts:<br />P&L stores<br />2.   Other company cost...
Net sales own stores<br />Operations dep,COO<br />end of June<br />P&L of store<br />Direct material costs<br />Operations...
Other company costs and revenues<br />All administration departments<br />Till the end of July<br />
Inventory<br />Opening Balance<br />+ Purchases<br />-         <br />Direct material costs (including plan for obsolescenc...
CAPEX preparation<br />CapEx & IA<br />Till the end of July<br />Office CapEx<br />StoreCapEx<br />Central Lab CapEx<br />...
P&L<br />Structure of budget pack<br />Deadline for Company is<br />17.10.2011<br />01.07.2011<br />Cash Flow<br />Balance...
Questions ?<br />
Budget2012
Budget2012
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Budget2012

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Budget2012

  1. 1. Budget process 2012<br />
  2. 2. Why we are here ?<br />Not to discuss how it used to be, but how it would be!!!<br />We need a Change !<br />Just to be on one page on structure of budget process.<br />To give you understanding of your participation into budget <br />
  3. 3. Reasons to have a budget in the company.<br />Budget is a very useful tool to estimate financial needs<br />Budget can help us to compare “What we would like to have” vs “What we actually have”<br />Budget will help all of us to rise the company’s effectiveness<br />Budget is for improving quality of management’s decisions<br />
  4. 4. Sad but true…<br />or a couple of words on theory<br />
  5. 5. Center of financial responsibility (CFR)<br />CFR – A division or unit of an organization for which a manager is held responsible.<br />There are 3 different kinds of CFRs:<br />Cost centre - a division or unit of an organization that is responsible for controlling costs.<br />Profit centre - a division or unit of an organization that is responsible for achieving profit targets. <br />Investment centre - a division or unit of an organization that is responsible for achieving an adequate return onthe capital invested in the division or unit.<br />
  6. 6. We are a management team<br />Profit center<br />Investment center<br />Costs center<br />Operations department; Purchases department;<br />Central Lab , Existing stores<br />Biz Development,New stores<br />All departments<br />
  7. 7. Process of management<br />Targets<br />Planning<br />Execution<br />Control / regulation<br />Motivation<br />
  8. 8. How it’s work<br />Strategic drivers<br /> Management decisions<br /><ul><li> Operations decisions
  9. 9. Budget expectation</li></ul>KPIs definitions<br />Planning<br /><ul><li> Budget planning
  10. 10. Budget approval</li></ul>Accounting<br />- transactions booking<br />Variance analysis<br /><ul><li> analysis of deviations</li></li></ul><li>Key drivers<br />Sales Budget; <br />Planned quantity of stores; <br />have to be done till the middle of the June<br />Salary Max growth rate;<br />Bonuses rate; <br />Other costs Max growth rate; <br />Changes in personnel (vacancies etc.);<br />Otherstrategic targets<br />
  11. 11. Profit and Losses statement & Cash Flow<br />P&L is a combination of 2 parts:<br />P&L stores<br />2. Other company costs and revenues<br />
  12. 12. Net sales own stores<br />Operations dep,COO<br />end of June<br />P&L of store<br />Direct material costs<br />Operations dep, purchase dep,COO<br />end of June<br />Other direct material costs<br />Central Lab<br />end of June<br />retail occupancy<br />Operations dep, finance department, Legal dep,CEO,COO<br />middle of July<br />retail personnel salary<br />Operations dep, COO<br />middle of July<br />advertising net<br />Marketing dep, CEO<br />middle of July<br />other store expenses<br />Operations dep,COO<br />middle of July<br />other operational costs<br />CEO, finance dep<br />middle of July<br />
  13. 13. Other company costs and revenues<br />All administration departments<br />Till the end of July<br />
  14. 14. Inventory<br />Opening Balance<br />+ Purchases<br />- <br />Direct material costs (including plan for obsolescence provision)<br />= Closing Balance<br />
  15. 15. CAPEX preparation<br />CapEx & IA<br />Till the end of July<br />Office CapEx<br />StoreCapEx<br />Central Lab CapEx<br />Central Lab <br />IT-dep ((IT equipment, Software)<br />Lab-technical department (medical equipment)<br />Operations (repairs, low-value assets for existing stores)<br />All administration departments<br />
  16. 16. P&L<br />Structure of budget pack<br />Deadline for Company is<br />17.10.2011<br />01.07.2011<br />Cash Flow<br />Balance Sheet<br />Narrative paper<br />Budget presentation<br />17.10.2011<br />
  17. 17. Questions ?<br />

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