Implementing new policies or amending the present one to minimise the deviation.Make the variance report periodically and analyse to find out the loopholes and possible reasons there off.Keep records of all the measurable activities on the regular/daily basis like the volume of production, processes, sales, purchase, store, errors, time of production etc.Brief the departmental heads about their targets and discuss the possible ways to achieve it.Make & review the proposed budget, and define the departmental targets in respect of expenditure, sales volume, revenue etc.It is necessary that the framework within which the costs, revenues and other financial amount are classified must be identical both in accounts and the budget departments. The accounts classification to be employed.Reports, statements, forms and other records to be maintained.Whether one, two or more signatures are to be required on each document should also be clearly stated. The authority of granting approval should be stated in explicit terms.Procedures to be followed for obtaining the necessary approval of budgets.A statement regarding the functions and responsibilities of each Executive by designation both regarding the preparation and execution of budgets.A statement regarding the objectives of the organization and how they can be achieved through budgetary control.Important Matters Covered in a Budget Manual Reporting the result and taking corrective actions.Comparing result & analysing deviations.Motivation will help them to improve their performance. The organisation should have a plan against which actual results can be progressively compared. Of different department or sub-units of the organization, this concept of co-ordination implies, for example, that the purchasing department should base its budget on production requirements, and that the production budget should, in turn, be based on sales expectations. It is necessary to have a formal system to make sure that each person is aware of what he is supposed to be doing. This is the most important feature of budgetary control because management is forced to look ahead, set targets, anticipate problems and give the organization purpose and direction, To communicate Ideas and Plans Objectives Of Budgetary Control To compel planning Advantages and Disadvantages of Budgetary Control (Table)īudgetary control is the process of comparing various actual revenues and expenditures with budgeted figures/planned income or expenditure to identify whether or not corrective action is required & for calculating variances if any.Important Matters Covered in a Budget Manual.
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