In: Accounting
1. The budget committee is an important part of the budgeting process. Discuss the activities of the budget committee.
2. When preparing the budgeted balance sheet, where would you look to find the information for the ending cash balance? Explain.
3. Why is it a good idea to create a "Budgeting Assumptions" tab when creating a master budget in Microsoft Excel (or other spreadsheet)?
As per policy, only one question is allowed answer at a time, so answering Q1 here :
Answer 1)
The budget committee is an important part of the budgeting process because it decides the various activities of the budget :
1) Bring the budget of the forthcoming period in writing on table within the prescribed time.
2) The committee will decide when and who will act for which part of the budget process.
3) The various time schedule of the budget activities are decided and timeline is set.
4) The responsibility assignments of various persons on the budgeting process and providing them specific tasks.
5) The budgetary line of action is matched with the accounting line within the organization, so that both are in synchronization.
6) Arranging the various formats, work-sheets, templates and various sources to bring the budgeting process got finish on time.
7) Forming the policies regarding/adhering to forthcoming budgets, resolving the upcoming variances, approval of authorities to operate the accounting software and allied records.
8) Arranging the meetings of the various steps of the budgeting process.
9) Bring the coordination and cooperation of each budget process.
The above activities of the budgetary committee is comprehensive and subject to company or industry-wise changes.
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