Budgeting Operating Plans

In: Business and Management

Submitted By fiveonit007
Words 705
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Budgeting Operating Plans
AIU Online
Kimberly Green-Wilson

Budgeting Operating Plans
To: Board of Directors of I Can Business Incorporated
From: Management Director
Subject: Financial Reporting System
Date: May 15, 2016
Dear Board of Directors: The financial reporting system of our company is of high importance and cannot be overestimated. A successful financial reporting system, its structure and process is a key component to the success of our company. By implementing the use of a financial reporting system, our company will have the support and foundation of a well-established company. The budget cycle refers to the life of a budget from creation to evaluation (Sessoms, n.d.). The framework of the budget cycle processes creates the necessary tools to help businesses be successful. It progresses in four stages, which are: preparation and submission, approval, execution, and audit and evaluation. During the initial stage, the company must take its budget into consideration in order to make decisions. The departments that are responsible for submitting budgetary projections are reviewed. Recommendations are made and the budget is approved. The budget may move back and forth between preparation and submission until all parties accept the document (Sessoms, n.d.). Once the budget is approved, the execution stage begins during the beginning of the accounting period or the fiscal year. Also during this stage, financial activities are monitored and controlled, making adjustments as needed while the budget is implemented (Sessoms, n.d.) After the accounting period has ended, an audit is completed to examine and measure the accuracy of the budget projections of financial activities. The evaluation provides a final report of the budget and the audit and makes recommendations for the next budget cycle and budget (Sessoms, n.d.). Although an…...

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