Preparing a Budget
It's very essential for every businessman to detail understanding need of business and capital required for each and every stage and in each division such as Sales ,Marketing , Research and Development ,Operations and Administration . So our focus today is developing budget for any company which is in manufacturing or trading or in service industry . Mostly there are 2 types of budget Top to down and Bottom up Budget . The major difference in these both budgets is Top- Down having specific goals such as Net Income ,Profit Margins and expenses .and while bottom up having no any specific targets For deciding budget all company should have own SWOT analysis . SWOT :- Strength ,Weakness, Opportunity & Threats . Some company developing yearly goals for budget such as 1. Increase Gross sales by 5% 2. Decrease overheads and administration costs . 3. Reduce inventory by 2% at end of fiscal year Once budgets decided top management have responsibility to review...