GROUP MEMBERS

Azeem Masih BBF18-041

Muhammad Ehsan BBF18-018

Fahad Akhtar BBF18-051

Muhammad Touseef BBF18-023

3
DEFINITION
A budget is an estimation
CONTENTSof revenue
and expenses over a specified future
period and is utilized by
governments, businesses, and
individuals. A budget is basically a
financial plan for a defined period,
normally a year that is known to
greatly enhance the success of any
financial undertaking..

4
PURPOSE OF BUDGET
• Mechanism for translating fiscal objectives into projected monthly spending
pattern.
• Enhances fiscal planning and decision making.
• Clearly recognizes controllable and uncontrollable cost areas.
• Offers a useful format for communicating fiscal objectives.
• Allows feedback of utilization of budget.
• Helps to identify problem areas and facilitates effective solution.
• Provides means for measuring and recording financial success with objectives
of organization.

6
Perquisites of ORGANIZATIONAL
Need a sound
organizational structure

budgeting STRUCTURE:
with clear line of
authority and
responsibility.

Such as number of
admissions, average
NON-MONETRAY
length of stay, percentage
STATISICAL DATA:
of occupancy and number
of patient’s days.

Used for planning and

budgetary process.

7
CHARTS OF ACCOUNTS Designed to be consistent with the
organizational plans. Revenues and
expenses are reported by responsibilities
areas, thus providing historical data that
are valuable for planning and providing
budgetary control for planning and
providing budgetary control for
evaluation as performance can be
compared to plans.
CHARACTERISTICS OF SUCCESSFUL BUDGETING

SHOULD BE MUST HAVE THE BUDGET THE BUDGET FOR A FRAMED IN PREPARED
FLEXIBLE THE MUST BE A SHOULD BE FUTURE ADVANCE FOR A FIXED
SUPPORT OF MOTIVATING COORDINAT PERIOD AND KEEPING AN PERIOD IT IS
MANAGEME TOOL ED IS BASED ON EYE ON A PREPARED
NT OBJECTIVES FUTURE OF BEFORE THE
TO BE ACTION PERIOD IN
ACHIEVED WHICH IT
COMMENCE
S
IMPORTANCE OF BUDGETING

1
1
IMPORTANCE OF BUDGETING

It Helps You Control Your Spending

It Shed Light On Your Spending

It Helps You Find Financial Contentment

It Helps You Prepare For Emergencies

It Help You Cut Expenses

PRINCIPLE OF BUDGET

Should provide sound financial management

Should focus on the objectives and policies

Effective use of financial and nonfinancial resources.

Program activities should be planned in advance

Consistent delegation
TYPES OF BUDGETING

Operating
Budget

Strategic Capital
Planning Expenditur
Budget e Budget

Flexible Cash
Budget Budget

Labor or
Personal
Budget 15
 CLASSIFICATION OF BUDGETING

• Incremental • Zero Budget

• Open Needed
• Fixed Ceiling Budget
• Flexible Budget
• Roll Over Budget
• Performance Budget
• Program Budget
• Sunset Budget
• Sales Budget
• Production Budget
• Revenue and expenditure
Budget

1
6
1
7
BUDGETING PROCESS
STEP 1: Establishment of operational goals
STEP 2 : Goals must be translated into quantifiable management objectives
STEP 3 : Formal plan for Budget

STEP 4 : Departmental budget are revised and prepare master budget

STEP 5 : Tested Financial Feasibility of Master Budget

STEP 6: Every Head of office prepare budget estimate

Thank you