Budget control is a tool for organizing the economic and financial affairs of a business, which includes monitoring and reviewing the program develop. In order to avoid compromising the financial health of an institution, it is recommend that all projects be subject to budget planning and control.
Types of budgets
Just as there are different business management models , financial planning can take a number of forms, depending on the business needs and short, medium or long-term objectives. Let’s look at some types.
Static budget
Perhaps the most common plan carried cambodia mobile database out by accountants and finance professionals in organizations . It is plann before the start of the calendar year, focusing on projecting annual results. It is a basic plan, with a rigid model that serves as a guide, after all, the objective is to materialize the goals.
Rolling forecast
Considered a good option for crisis scenarios , in postponing is not laziness! this format the planning always includes business goals for the next 12 months. As the name suggests, there is a rolling process and adjustments. With each new month, the projection year is consider from that point onwards and the final month is discarded.
Beyond budgeting
This refers to a model widely us in organizations whose leadership and hierarchy follow a horizontal rather than vertical logic. In this review b type of budget, instead of the overall budget, each manager considers the demands of his/her area and carries out this planning taking into account the metrics of his/her segment.
Adjuste Budget ( Forecast )
The focus of this model is to assess the current reality of the business, considering what was planned and accomplish, and readjusting it as projects progress, according to the goals achieved. The advantages of this model are flexibility and the knowledge generated from market and risk analyses carried out during the period.
Zero-base budgeting
In this type of budget, you always start from scratch, considering only the new goals. None of the previous results are taken into account in this format. Its opposite is calle a historical basis and considers previous months to make predictions.
Matrix control
This budget control model segments the business structure into what is calle a spending package. These packages are variable, depending on the company’s profile, and can be arrang to investigate the costs of specific areas, such as Human Resources .
