FINANCIAL MANAGEMENT PROJECT

NAME OF THE PROJECT- BUDGETORY CONTROL: TOOL OF FIRM

CONTROL
UNDER SUPERVISION OF: ANITA NANDI BARMAN
STUDENT: DEBASISH SAHA
BBA (H), 6TH Sem.
DECLEARATION
I hereby declare that this project report titled Financial Research
Project on Budgetary control: Tools of Firm control submitted to
the Department of Business studies, NSHM KNOWLEDGE
CAMPUS(Durgapur) is a record of original work done by me under
the guidance of Mrs ANITA NANDI BARMAN.
The information and data given in the report is authentic to the
best of my knowledge.
This Project Report is not submitted to any other university or
institute for the award of any degree, diploma, or fellowship or
published time before.
-Debasish Saha
ACKNOWLEDGEMENT
It is my proud privilege to release the feelings of my gratitude to
several people who helped me directly or indirectly to conduct
this research project work. I express my heart full indebtness and
owe a deep sense of gratitude to my faculty guide Mrs. Anita
Nandi Barman for his sincere guidance and inspiration in
completing this project.

The study has indeed helped me to explore more knowledgeable

avenues related to my topic and I am sure it will help me in my
future.

INDEX
CHAPTER 1: INTRODUCTION
1.
2.
3.
4.
5.
6.

Meaning of Budget.
Essential of Budget.
Types of Budget.
Benefits of Budget.
Budgetary control.
Importance of Budgeting.
Meaning of Budget

Simply put, a Budget is an itemized summary of likely income and expenses for a
given perioid. Its an invaluable tool to help you prioritize your spending and
manage your money-no matter how much or how little you have. Planning and
monitoring your budget will help you identify wasteful expenditures, adapt quickly
as your financial situation changes, and achieve your financial goals. A budget is a
set of interlinked plans that quantitatively describe an entitys projected future
operation. A budget is used as a yardstick against which to measure actual
operating results, for the allocation of funding, and as a plan for future operation.
Budget aid to help the planning of actual operation by forcing managers to
consider how the conditions might change and what steps should be taken now and
by encouraging managers to consider problems before they arise. It also help coordain taste the activities of organization by compelling the managers to examine
relationship between their own operation and those of other department. Budgets
help on every aspects of the production market chain, by enabling business,
government and consumers to have better spending power and accountability for
their earnings.
THE CHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS,
ENGLAND, DEFINES A BUDGET AS:

A plan quantified in monetary terms prepared and approved prior to a defined

period of time usually showing planned income to be generated and or expenditure
to be incurred during that period and the capital to be employed to attain a give
objectives.

ESSENTIALS OF BUDGET
Plan expressed in monetary terms
Prepared prior to a defined periodiate.
Related to a definite future period.
To control resources.
To communicate plans to various responsibility centers managers.
To evaluate the performance of managers.
To provide visibility into the companys performances.
For accountability.

In summary, the purpose of budgeting is tools:

Tools provide a forecast of revenues and expenditures, that is,
construct a model of how a business might perform financially if
certain strategies, events and plans are carried out.
Tools enable the actual financial operation of the business to be
measured against the forecast.
Lastly, tools establish the cost constraint for a project, program,
or operation.
An average budget would showcase the subjects income and the
venues it is allocated from, such as wages and tips; income from

bank account interest; any possible dividends; gifts received;

purchase refunds and reimbursements and on the other end the
applicable expenses that are subtracted routinely from these
income sources. Budgeting focuses on finding efficient balances
to satisfy expenses while maximizing retained profits and in the
process, creating wealth. Budgets may need to be fine tuned or
reassessed due to changes in income, changes in expenses,
changes in the subjects exterior environment that affect either of
the two principles. These changes make a budget flexible which is
a necessity in order for it to remain a plausible and effective
template of the right financial decisions.
TYPES OF BUDGET
FUNCTIONAL BUDGETS- Budgets for various departments
and functions of the organization such as sales,
production,admin, etc.
MASTER BUDGET- Sumary of all functional budgets including
projected income statement and balance sheet.
CASH BUDGET-A Budget of cash inflow and outflows.
CAPITAL BUDGET-A Budget for investment that require huge
capital outlay outlay over a long period of time.

 GOVERNMENT BUDGET-A Budget for government revenue

and expenditure.