Budgeting Process Paper
Budgeting is the foundation of running a successful business. A budget is simply a plan for your future income and expenditures that you can use as a guideline for spending and saving. In order to create good budget is by planning and communication. Shim, Siegel, and Shim, (2012) stated that the budgeting process requires good, timely communication. Everyone involved much be communicated the expectations of the budget.
As a member of management of Kroger, I have created many budgets in my career. The last most recent budget I was responsible for creating was the weekly sales budget. This particular budget require us to predict what sale we will do each day and a week as a whole. With predicting the sale for the week, it generates the labor hours for the week as well. Softer sales equal lower hours; harder sales equal more hours. Most weeks our sales are about $780k which generates about 4,300 hours for the entire store together. Sometimes we come a little under budget which means hours must be cut from the department s that is falling behind.
In order to create successful operable budget, the five criteria mention in chapter one must be met. When creating my weekly budget, we are required to use our predictive ability to predict sales for each day. We try to plan and predict sale with each department manager to ensure we …show more content…
Some of the consequences for the HR department’s initiatives when the organization does not have an effective budgeting process are that department over use on hours which in turn means the department over spend when means the organization does not make any profit. A for profit organization that is unprofitable can cause the business to go under. In Kroger land, if we do not meet our profit quota, we do not receive our bonus incentive at the end of the fiscal
As a member of management of Kroger, I have created many budgets in my career. The last most recent budget I was responsible for creating was the weekly sales budget. This particular budget require us to predict what sale we will do each day and a week as a whole. With predicting the sale for the week, it generates the labor hours for the week as well. Softer sales equal lower hours; harder sales equal more hours. Most weeks our sales are about $780k which generates about 4,300 hours for the entire store together. Sometimes we come a little under budget which means hours must be cut from the department s that is falling behind.
In order to create successful operable budget, the five criteria mention in chapter one must be met. When creating my weekly budget, we are required to use our predictive ability to predict sales for each day. We try to plan and predict sale with each department manager to ensure we …show more content…
Some of the consequences for the HR department’s initiatives when the organization does not have an effective budgeting process are that department over use on hours which in turn means the department over spend when means the organization does not make any profit. A for profit organization that is unprofitable can cause the business to go under. In Kroger land, if we do not meet our profit quota, we do not receive our bonus incentive at the end of the fiscal