As we have already accounted, budgets are a corner stone that is made up of good accounts.
What is a budget?
An allocation of money (or resource) to undertake a particular task. It may be over a specific task (such as a project) or a time period, or both. Furthermore into this topic budget is meant to be the rea use of resources that supply us with information. Over time, this information is then used to improve companies and future budgets. Budgets also help us to understand HOW and WHERE your costs go and how the money is spent.
Budget
Proposal
Resource
Allocation
Actual
Actual
Resource
Used
Variance
Difference between the Two.
(May be positive, neutral, or negative).
We where then shown an example of the budget actual variance and cumulative variance.
The example shows that the maths and sums to this has already been done so that the answers have already been worked out and easier to see, but it shows that you have overly spent by £12. This is why budgeting is so important so that you can see and work out the problems that feed into one budget. Within the second part of the lecture we then talked about Business and Planning and Media types which I thought would become very useful within the future, when I am a designer working for a company or a company that I have set up and managing yourself.
We firstly started off by talking about the basics of business planning and what it is meant by this and why it is so important to companies. We were firstly told about the purpose which is the Income, Profit, Charity and Kudos? So what do you want out of this? and why? The next thing we were told was Tye is it Freelance, Ltd, Semi-Partnership and or Partnership. What is the nature of this, what are you actually doing? This MUST be legal and you have to think what you can do, and just something that you want to do. The final basics we looked at was where, where do you want to geographically do business and where would you want this business to be, not New York think smaller such as where would like this company to be located in the United Kingdom.
This is very important as you need to think these points all through very carefully which will allow these aspects to be successful. If you have no direction, you will slowly drift and will become unsuccessful. The knowledge of where you are will help you out and help you to understand where you would like to go and where you want to be in the future. However try not to start a business until you have thought and mastered these points, so that you will be likely to be unsuccessful.
After you have done this you can then start to develop several plans so that you can succeed at the task that you have and are trying to do. Plans can go three different way these are: Good, Bad and Ugly, however you do need to address the situation what you have to do. You need to consider the basics which are the cost of living, the facilities that you have and also need to require that includes food and drink the equipment and materials that you need, but also where you are going to live and the cost of travel too and from places. To do this you need to split these two situations into two different groups one being your personal life and the other your business.
To be certain you need to the financial and resources for both groups in order for you to keep track of your spending and income in an easier and understandable way. For example you need to consider the amount that you earn in order for you have an easy way of living and this will also indicate that when you need to set up your business. However for your Business Life you need look into the cost of running the firm and company, but you also need to consider the way in which is going to run and its from here where you consider the business plan. I found that this lecture was very interesting and was factual and will defiantly help within the future.
