The document discusses budgeting and the budgeting process. It defines budgeting as the tactical implementation of business goals and objectives outlined in a strategic plan. The budgeting process typically begins 4-6 months before the fiscal year and involves communication, establishing targets, developing detailed budgets, review, and approval. There are 6 key steps in the budgeting process: 1) aiding planning, 2) coordinating activities, 3) communicating plans, 4) motivating managers, 5) controlling activities, and 6) evaluating performance. There are three main types of budgets: operating budgets which cover day-to-day revenues and expenses, capital budgets which cover large asset purchases, and cash budgets which tie the other budgets together and assess cash

1. SAMBALPUR UNIVERSITY,
JYOTI VIHAR,BURLA
• Subject-Accounting Managerial Decisions
Semistar-1st
paper code-M com 412
F.M-20
1)what is Budgeting process? Describe different of Budget.
-Sujata Pani-

2. What is Budgeting?
Budgeting is the tactical implementation of a business
goals in a business’s strategic plan, we need a detailed
of the business plan that sets measures
can then make changes along the way to ensure that we
desired goals.

3. Budgeting Process :-
The budgeting process for most large companies usually begins four to six months before
the start of the financial year, while some may take an entire fiscal year to complete.
Most organizations set budgets and undertake variance analysis on a monthly basis.
Starting from the initial planning stage, the company goes through a series of stages to
finally implement the budget. Common processes include communication within
executive management, establishing objectives and targets, developing a detailed
budget, compilation and revision of budget model, budget committee review, and
approval.
 Budgeting is a critical process for any business in several ways.
That is 6 step of process -
1. Aids in the planning of actual operations
2. Coordinates the activities of the organization
3. Communicating plans to various managers
4. Motivates managers to strive to achieve the budget goals
5. Control activities
6. Evaluate the performance of managers

4. 1. Aids in the planning of actual operations
The process gets managers to consider how conditions may
they need to take, while also allowing managers to understand
problems when they arise.
2. Coordinates the activities of the organization
Budgeting encourages managers to build relationships with the
operation and understand how the various departments and
other and how they all support the overall organization.

5. 3. Communicating plans to various managers
Communicating plans to managers is an important social
which ensures that everyone gets a clear understanding of how
organization. It encourages communication of individual goals,
which all roll up together to support the growth of the
appropriate individuals are made accountable for implementing
4. Motivates managers to strive to achieve the budget goals
Budgeting gets managers to focus on participation in the
a challenge or target for individuals and managers by linking
performance relative to the budget.

6. 5. Control activities
Managers can compare actual spending with the budget to
6. Evaluate the performance of managers
Budgeting provides a means of informing managers of how well
meeting targets they have set.

7. Types of Budgets
A robust budget framework is built around a master budget consisting of
expenditure budgets, and cash budgets. The combined budgets generate a
statement, balance sheet, and cash flow statement.
Their the 3 types of Budgets-

8. 1. Operating budget-
Revenues and associated expenses in day-to-day operations are budgeted in
into major categories such as revenues, salaries, benefits, and non-salary
2. Capital budget-
Capital budgets are typically requests for purchases of large assets such as
systems that create major demands on an organization’s cash flow. The
are to allocate funds, control risks in decision-making, and set priorities.
3. Cash budget-
Cash budgets tie the other two budgets together and take into account the
timing of receipt of cash from revenues. Cash budgets help management
company’s cash flow effectively by assessing whether additional capital is
company needs to raise money, or if there is excess capital.

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