Working with Budgets Assignment Example | Topics and Well Written Essays - 250 words

Working with Budgets - Assignment ExampleIt also assists in avoiding idle cash and each cash shortage that may adversely affect the system. The cash budget consist mainly of four sections Receipts, where cash balance at the beginning is entered positivistic all new(prenominal) cash collections from customers and other receipts disbursement section, where all the cash payments are entered cash surplus or deficit column, where the difference among receipts and payments are entered and finally, the financing section, enumerating a detailed account of repayments and borrowings expected during the financial period.The other budget that I work with in the organization where I work is the operating budget. This refers to a statement representing the organizations financial plan for each duty center during the budget period and shows the operating activities involving expenditures and revenues. The discordant types of operating budgets I work with include revenue, expense and profit bu dgets. Revenue budget mainly identifies the revenue needed by the organization and mainly projects organizations future sales. Expense budget is an operating budget that identifies expected future expenses during the budget period. These include fixed, vari equal to(p) and discretionary costs. Profit budget, on the other hand, is a combination of revenue and expense budget into a single statement to reveal the net and gross profit realized during the period. This budget is authorised because it aids in making final resource allocation (Ippolito, 2004).Working with different types of budget separating devises work harder as the organization I work with has been adopting this system. To make work easier, it is imperative that these budgets should be linked together in form of a master budget. A muster budget will be able to incorporate all the organizations financial and operating plans for the entire period (Cooke