BUDGETING

by MAHSINA, SE, MSi,.

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Universitas Bhayangkara (UBHARA)

SURABAYA

Reference

1. Budgeting “ Glen A Welsch “

2. Budgeting “ Munandar “ BPFE Yogyakarta

3. Anggaran Perusahaan “ Gunawan A S dkk

“

4. Anggaran Perusahaan “Nafarin “………

5. Anggaran Perusahaan “………….

Planning and Budgeting

Planning is the process by which a company

sets out its overall goals and the specific

strategies it will implement to meet them,

in both the short and long term

Planning consist as follows:

Objective, Policies, Roles, Methods,

Strategy, Standard, Procedures and Budget

A budget (derived from old French word

bougette, purse) is a quantified financial

plan for a forthcoming accounting period

Planning and Budgeting A budget (derived from old French word bougette,

purse) is a quantified financial plan for a

forthcoming accounting period

A formal written statement of management’s

plans for a specified future time period,

expressed in financial terms

Primary way to communicate agreed-upon

objectives to all parts of the company

Promotes efficiency

Control device - important basis for performance

evaluation once adopted

• Budget helps to aid the planning of actual

operations by forcing managers to consider

how the conditions might change and what

steps should be taken now and by encouraging

managers to consider problems before they

arise

It also helps co-ordinate the activities of the

organization by compelling managers to

examine relationships between their own

operation and those of other departments.

BUDGETING BASICS Role of Accounting

Historical accounting data on revenues, costs, and expenses help in formulating future budgets

Accountants are normally responsible for presenting management’s budgeting goals in financial terms

The budget and its administration are, however, entirely management’s responsibility

BUDGETING BASICS

Benefits of Budgeting

Facilitates coordination of activities within the business

Results in greater management awareness of the entity’s overall operations and the impact of external factors

Motivates personnel throughout organization to meet planned objectives

Other essentials of budget include:

To control resources

To communicate plans to various

responsibility center managers.

To motivate managers to strive to achieve

budget goals.

To evaluate the performance of managers

To provide visibility into the company's

performance

For accountability

In summary, the purpose of

budgeting is tools:

Tools provide a forecast of revenues and

expenditures, that is, construct a model of how

a business might perform financially if certain

strategies, events and plans are carried out.

Tools enable the actual financial operation of

the business to be measured against the

forecast.

Lastly,tools establish the cost constraint for a

project, program, or operation.

Advantages of Budgeting

Advantages

Communicating

plans

Think about and

plan for the future

Means of allocating

resources

Uncover potential

bottlenecks

Coordinate

activities

Define goal

and objectives

The Basic Framework of Budgeting

Detail

Budget Detail

Budget Detail

Budget Master

Budget

Summary of

a company’s

plans.

Pro

du

ctio

n

Choosing the Budget Period

Operating Budget

2008 2009 2010 2011

The annual operating budget

may be divided into monthly

or quarterly budgets.

The Perpetual Budget

2008 2009 2010 2011

Continuous or

Perpetual Budget

This budget is usually a twelve-month

budget that rolls forward one month

as the current month is completed.

Participative Budget System

Flow of Budget Data

Supervisor Supervisor

Middle

Management

Supervisor Supervisor

Middle

Management

Top Management

Responsibility Accounting

Managers should be held responsible for those

items — and only those items — that

the manager can actually control

to a significant extent.

The Budget Committee

A standing committee responsible for

◦ overall policy matters relating to the budget

◦ coordinating the preparation of the budget

Many factors must be considered when

outlining future financial goals, including:

The Objective of the Company

Past Financial / Non Financial Data

Technology needs

Capital improvements

Overhead needs

Planned giving and capital campaign revenue

Borrowing funds

Budgeting Requires:

1. Realistic

2. Coordinated

3. Able to motivates employees

Fungsi anggaran

1. Fungsi Perencanaan

2. Fungsi Pelaksanaan

3. Fungsi Pengawasan

Kelemahan anggaran

1. Anggaran dibuat berdasarkan taksiran

dan anggapan, sehingga mengandung

unsur ketidak pastian.

2. Tidak semua perusahaan mampu

menyusun anggaran yang komprehensif,

karena biaya bisa mahal.

3. Anggaran menjadi tidak efektif bagi yang

terpaksa melakukannya.

Macam-macam Anggaran

1. Menurut dasar penyusunan :

a. Anggaran Variabel

b. Anggaran Tetap

2. Menurut Cara Penyusunan :

a. Anggaran Periodik

b. Anggaran Kontinu

3. Menurut Jangka waktu :

a. Anggaran jangka pendek

b. Anggaran jangka panjang

4. Menurut Bidangnya :

a. Anggaran Operasional

b. Anggaran Keuangan.

5. Menurut kemampuan menyusun :

a. Anggaran Komprehnsif

b. Anggaran Partial

6. Menurut fungsinya :

a. Anggaran dgn tujuan tertentu

b. Anggaran aktivitas (Performance budget)