Elements and Performance Criteria
- Prepare a budget
- Obtain information on past receipts and payments and compare to current prices and cost trends
- Prepare gross margin projections for each production enterprise of the business
- Identify projected non-enterprise income and overhead costs for the business
- Identify projected capital-based income and costs for the business
- Prepare a plan for a period which allows for expected income and expenditure, using the 'most likely' prices and costs
- Ensure the plan allows the business to meet financial reporting requirements
- Implement and monitor a budget
- Monitor receipts and payments and reconcile against the original budget
- Allocate funds in accordance with budget objectives and parameters
- Identify variances against the original plan and calculate the impact on overall profit and loss and cash flow
- Make adjustments to the original plan for the remainder of the budget period where necessary to respond to unacceptable variations
- Renegotiate and restructure budgets and plans to optimise enterprise performance
- Prepare financial report