CONSULTATION ON MAKING BUDGET PLANS
The budget means to make the back-up plan for income and costs in the future of a business or a project (budget – an estimate of income and lineage for a period set or “keep within the household budget”).
The budget is considered to build the detailed financial plans for business operation in the future.
The feature of the budget plan is the upcoming business plan to be expressed by money. In other words, it is the sum of all revenue plans, costs, profits of a business in the future. hybrid
So there is no budget plan form for all types of businesses, all sizes of businesses. Budget estimates that are appropriate to the business model and market trends are extremely important, and are the annual task of business management. However, this work is always facing many challenges and difficulties due to the changing and unpredictable business environment, or lack of experience in coordination or assignment among departments…
Currently in the small and medium enterprises in Vietnam, most CEOs do not have the habit of corporate governance through budget planning. We can see that this work is carried out fairly regularly and professionally by enterprises in developed countries, such as Japanese, German, French FDI enterprises … They have detailed budget plans according to year, quarter, month, week… Corporate governance based on feasible and feasible budget planning has become essential management skills of today’s CEOs and CFOs.