1. Benefits of Budgets
1.1. Efficient control: Optimization of resources and expenses.
1.2. Decision making: Basis for business strategies.
1.3. Coordination: Promotes communication between areas.
1.4. Clear goals: Facilitates focusing on achievable objectives.
2. Definition and purpose
2.1. Tool: Financial planning and control.
2.2. Quantification: Expresses objectives in monetary terms.
2.3. Anticipation: Allows you to foresee events and prepare for them.
3. Budget classification
3.1. For flexibility:
3.1.1. Rigid/Fixed: They do not allow adjustments during their execution.
3.1.2. Flexible/Variable: Adaptable to unforeseen events.
3.2. By Period:
3.2.1. Short term: Up to one year, addressing immediate changes.
3.2.2. Long term: More than three years, focused on future investments and projects.
3.3. By field of applicability:
3.3.1. Operating: Income and operating costs.
3.3.2. Financial: General balance and treasury.
3.4. By Sector:
3.4.1. Public: State and government entities.
3.4.2. Private: Private companies.
3.5. By importance:
3.5.1. Summaries: Focus on global data.
3.5.2. Analytical: Detail specific operations.
3.6. By units:
3.6.1. Monetary: Expressed in economic figures.
3.6.2. Physical: Based on units produced or sold.
4. Stages of the budget process
4.1. Pre-initiation:
4.1.1. Diagnosis of internal and external factors.
4.1.2. Definition of initial objectives and strategies.
4.2. Preparation:
4.2.1. Data collection.
4.2.2. Consolidation in budget sheets.
4.2.3. Presentation and adjustments.
4.3. Execution:
4.3.1. Comparison between planned budget and actual results.
4.3.2. Periodic adjustments.
4.4. Control:
4.4.1. Identification of deviations.
4.4.2. Corrective measures.
4.5. Evaluation:
4.5.1. Final report with analysis of successes and errors.
5. Specific Types of Budgets
5.1. Zero-Based Budget: Starting from no previous data, focus on costs/benefits.
5.2. Sales Budget: Forecasts, trends and projected prices.
5.3. Production Budget: Includes:
5.3.1. Materials: Cost and quantity required.
5.3.2. Labor: Time and wages, with performance factors.
5.3.3. CIF: Indirect manufacturing costs.