FNSACC513 Manage Budgets and Forecasts

Task:

Your task is to research the following topics then outline your findings in a report. Use the questions below as a guide to your research:

1.Explain the key purpose and the objectives of budgets and forecasts.

2.Discuss the relevant of milestones and key performance indicators in budgets and forecasts

3.What are the principle ethical requirements that are associated with budgetary forecasting and projections, within the context of the strength of assumptions and forecast  Reliabilities? 

4.Identify and discuss the types and the sources of data and information which are suitable to use and required for budgeting and forecasting activities 

5.Compare and contract at least 2 forecasting techniques

6.What are the main features that are to be included in organisational policies and procedures which relate to budgeting and forecasting?

7.Briefly explain the key principles and practices of each of the following:

a.Accrual accounting, including how its implementation affects budgeting and the monitoring of budget outcomes

b.Double-entry bookkeeping, including how its implementation affects budgeting and the monitoring of budget outcomes

c.Corporate governance

d.Statistical analysis and measures of variance

The following task must be demonstrated in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

?Office equipment, technology, software and consumables required to manage budgets and forecasts, including:

?Access to the internet

?Digital technologies to access, extract and share required information

For this task you are to complete the following steps to prepare and manage budgets and forecasts.

Prepare the budget through completion of the following steps: 

1.Conduct some research to identify and review the industry-standard accounting principles and practices, organisational policies and procedures and the legal and ethical requirements that are to be applied to the preparation, documenting and presentation of budgets and forecasting estimates. Document this research.

2.Consult with relevant others to establish the budget objectives, and to confirm that they are consistent with the aims and projects of the organisation. Document the outcomes of this consultation.

3.Define, and document, the cash, expenditure and revenue items, ensuring that these items are relevant to the budget

4.Identify the milestones and performance indicators, to be included in the budgets to monitor the financial performance, and break down the annual budgets into seasonal periods, in accordance with the operating trends of the organisation. Record these milestones and performance indicators, as well as the seasonal period breakdown.

Perform the following steps to forecast the estimates for the budget: 

5.Identify the relevant data that is required for the forecasts and anticipate any potential changes in circumstances. Provide the data and record the anticipated changes.

6.Establish and document the assumptions and parameters, reviewing them for their accuracy, relevance and compliance with the relevant organisational policies and procedures. Document this review.  

7.Develop realistic, ethical and attainable estimates of the future cash flow, costs and revenues of the business, supported with verifiable evidence and source documentation. Provide these estimates, and supporting evidence. 

8.Identify any financial risks, and develop and initiate appropriate protection strategies in accordance with the organisational policies and procedures.

Complete the following steps to accurately document the budget: 

9.Present the data in format that is easy to understand and that is appropriate to budget reporting

10.Complete all required reports within the required timelines, for the specified periods and projects

11.Compare the projections with market growth and development to identify the feasibility of the budget. Document this comparison.

12.Present/distribute the budget report to required personnel

Perform the following steps to monitor the budget outcomes:

13.Analyse any budget variances in accordance with organisational procedures, and make appropriate recommendations to the client or designated person based on your analysis. Document this analysis, including recommendations made. 

14.Review the budget process, and implement changes as required. Document the review, as well as any changes implemented.