Project 4

Project 4: Budgeting

 

Project Introduction

 

When an individual decides to go into business, assets are gathered together, money may be borrowed from the bank, equipment and supplies are purchased, a business name is created, and the business opens or is “born.”

 

As the business continues to operate, the owner adds records of sales, purchases, and operating costs to the financial data. These historical records are the beginning of an accounting system.

 

These records help answer essential operating questions such as:

• What was the sales amount in October?
• What were the utility costs in December?
• How did we perform in 20yy as compared to 20xx?

As the business matures, the next step in the growth and improvement of the accounting system is budgeting. The owner may find it helpful to compare the actual performance in 20yy with the plans that had been drawn up for 20yy.

 

In this project you will step through three training rooms:

• Training Room 1: Budget Planning
• Training Room 2: Preparing a Budget
• Training Room 3: Budget Analysis

Continue on to Training Room 1, where Sakineh will show you how to use all of the records you have completed as part of the accounting cycle to plan a budget.

 

 

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