Reply 6.2

 
Businesses typically develop budgets using a five-step planning process. The first step is creation of the strategic plan where long-term goals are established (along with a plan to achieve) and includes a financial projection for the next five years. Second, a more detailed financial plan is outlined which proves an outlook for the first year on a month-by-month basis. Third, because circumstances can change so rapidly in the first year of strategic plan implementation, the first-year financial plan is revisited monthly and adjusted in order to take unforeseen changes into consideration. The fourth step is to make informal forecasts throughout the year, such as predicting full-year sales at mid-year. The last step is for the company to produce their business plans, including detailed financial projections, that can be used to apply for additional capital, if necessary (Finney & Meigs, n.d.).
From this information, I gathered that is it important to project the first year on a monthly, rather than on a quarterly basis, because the risk of unforeseen circumstances in the first year of operating (or implementation of a new strategic plan) is high. Actuals should be consistently compared to the plan to determine if the plan is off-course, what risk the short-term gap has created for the full-year plan, and if changes are needed in the strategic plan to course correct. After the first year, there should be enough historical actuals to create more accurate forecasts that can be done on a quarterly basis.
Reference
Finney, R. G. & Meigs, R. F. (n.d.). Budgeting. Reference for Business. Retrieved from https://www.referenceforbusiness.com/encyclopedia/Bre-Cap/Budgeting.html

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 25% with the discount code: COCONUTPlace Order
+