The Preparation Method Of Financial Budget Is Crucial To Financial Management.

The budgetary profit and loss statement reflects the income, cost and operating results of an enterprise during the budget period. Since the whole financial budget is based on sales revenue, only the sales revenue is determined in the budget profit and loss statement, can we further plan and calculate the cost of matching the sales revenue.

(1) content: three major accounting statements

(2) practices: Based on business budgets (sales, costs, expenses, fixed assets, funds, etc.) and financial assumptions.

(3) steps: first profit and loss, then asset liability, after cash flow.

(4) method: finance assumes only assumptions, not forecasts.

1) forecast sales volume, sell varieties and quantities;

2) introduce related production costs according to the variety and quantity of sales.

3) selling expenses according to the proportion of sales and previous years;

4) calculate the amount of administrative expenses according to historical conditions.

5) compiling a profit forecast table based on the above data;

6) based on the profit statement and historical data, the corresponding balance sheet items (e.g. stock turnover, receivables turnover, current ratio, quick ratio) are calculated.

7) revise the above statements according to the management intention of the company or boss this year.

2. data collection. Before preparing the financial budget, collect and compile budgetary information.

3. summarize the business budget. The various business budgets compiled by various departments, such as sales budgets, production budgets, cost budgets, materials, purchases of low value and consumable items, direct labor budgets, etc., are important basis for making financial budgets. Before compiling the financial budget, the data and economic indicators of the various business budgets should be collated, analyzed, and identified as the relevant budgets of the various financial statements.

4. the preparation of financial budgets. To prepare the financial budget, the sales budget of the sales budget should be taken as the starting point and the balance of cash flow as the starting point. Profit and loss statement The balance sheet reflects the business performance and financial situation of the enterprise. A series of reports and data of the financial budget are closely linked, interrelated and complemented each other, forming a complete system.

The part of sales revenue that exceeds the operating cost is called gross profit, and the gross profit margin is the key to enterprise profitability. The expenses of enterprise operation, management and financial expenses and the realization of profit depend on gross profit. The structure, data sources and balance relations of the budget profit and loss statement are as follows:

Project data sources

A sales revenue sales budget and forecast

B operation cost cost budget and forecast

C gross margin equals A-B

D sales cost budget and forecast

E management expenses management cost budget and forecast

F "cash in the form of financing and interest payments" in the statement of cash flow of financial expenses.

G investment income is invested by the enterprise's financial budget or through the analysis of the economic benefit and return on investment of the invested enterprise.

H profit equals C-D-E-F+G

I income tax equals H * tax rate.

J net profit

Run equal to H-I

(two) budget cash flow statement

Organization cash flow The budget is based on the balance of the initial cash in the enterprise, taking into account the cash income during the budget period, and expecting the ideal cash balance at the end of the period to determine the cash expenditure during the budget period. The relationship can be expressed as a formula.

Cash balance at the beginning of the year + cash income during the budget period - Budget

Ideal cash balance at the end of the year = cash outlay during the budget period

The 1. phase of cash balance data is derived from the initial period of the monetary assets of the budget balance sheet.

2. the cash income consists of the following three aspects: business activities, investment activities and cash income generated by fund-raising activities.

(1) cash income generated by business activities is mainly derived from cash income from sales of goods or services, rental income and other income related to business activities. It is equal to the difference between sales and other business income, the difference between the end and the beginning of the increase, decrease of receivable and advance accounts.

(2) the cash income generated by investment activities is mainly derived from the returns received from foreign capital, the recovery of investment, and disposal of cash received from fixed assets, intangible assets and other long-term assets. The cash received from outward investment is equal to the investment income of the budget profit and loss account, plus or minus: the difference between the end and the beginning of the receivable and advance account. To recover the cash received from the investment, according to the decision of the board of directors to recover the investment, it is estimated that the reduction in the number of long-term investments and short-term investments, plus or minus: the difference between the end and the beginning of the receivable and advance accounts. The cash received from disposal of fixed assets or intangible assets is equal to the net income of disposing of fixed assets or intangible assets, plus or minus the difference between the end and the beginning of accounts receivable and advance accounts.

(3) Fund-raising Activities The cash income generated is equal to the cash received from the equity investment, the cash received from the issuing bond, and the cash received from the loan. The cash that absorbs equity investment income is equal to the amount of the increase in the allotment of shares, plus or minus the difference between the end and the beginning of the receivable and advance account. The cash received from the loan is equal to the difference between the cash expenditure and cash income during the budget period (excluding net cash plus cash received by the borrower) and the monetary funds at the end of the year and the beginning of the year.

3. cash disbursements include cash payments for business activities, investment activities and fund-raising activities.