A presentation on Budgeting to learn basic concept of budgeting. How to develop budget step by step. Classification of budget according to time, function and flexibility along with the implementation and making of budget for an organization.

1. BUDGETING
By: Muhammad Sabih Hussain

2. WhatisBudget?
page 2
“A budget is an estimation of revenue and expenses
over a specified future period of time.”
Budget can be made for:-
• Person
• Family
• Business
• Government
• Country
• Multinational Organizations

3. ClassificationofBudget
page 2
According toTime According to Function According to Flexibility
Long term Budget Sales Budget Fixed Budget
Short term Budget Production Budget Flexible Budget
Current Budget Cost of Production Budget
Rolling Budget Purchase Budget
Personnel Budget
R & D Budget
Capital Expenditure Budget
Cash Budget
Master Budget

4. Pre-RequisitesofBudgeting
page 2
Capital
Expenditure
Planning
Period
Decision
Rules
Collecting
Data
Growth of
Organization
RisksIrreversibility
of Investment
Decisions

5. StepsforDevelopingBudget
page 2
Goal Setting
Data Gathering
Past Budget
Analysis
Budget
Proposal
Review
Budget
Proposals
Stakeholder’s
Input
Budget
Approval
Communication
&
Implementation
Monitoring

6. Research Finance Invest
page 6
BusinessModel

7. 20YY
AUG SEP OCT NOV
20YY
DEC JAN FEB MAYMAR APR JUN JUL AUG SEP OCT NOV DEC JAN FEB MAYMAR APR
Trials
Month, 2017
Timeline
page 7
Our two-year action plan
Legislation
Month, 2017
Marketing
Month, 2018
Investment
Month, 2018
Procurement
Month, 2019
Launch
Month, 2019

8. Financials
page 2
Year 1 Year 2 Year 3
Detailers 5,000 40,000 160,000
Users 50,000 400,000 1 600,000
Sales 500,000 4 000,000 16 000,000
Average Price per Sale 75 80 90
Revenue @ 15% 5 625,000 48 000,000 216 000,000
• Cost of Revenue 0 0 0
Gross Profit 5 625,000 48 000,000 216 000,000
Expenses
• Sales & Marketing 5 062,500 38 400,000 151 200,000 70%
• Customer Service 1 687,500 9 600,000 21 600,000 10%
• Product
Development 562,500 2 400,000 10 800,000 5%
• Research 281,250 2 400,000 4 320,000 2%
Total Expenses 7 593,750 52 800,000 187 920,000
EBIT -1 968,750 -4 800,000 28 080,000 13%

9. THANK
YOU