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Budget Sheet
July budget
revenue
9,438,333.80
cost of sales Olympics and London
1,875,000.00
Olympic and UK
1,550,000.00
Olympic & UK and Ireland
1,604,167.00
Olympic & UK & Scandinavia
1,212,500.00
Olympics & UK grand tour of Europe
500,000.00
total
6,741,667.00
gross profit at 40% mark up
2,696,666.80
expenses accounting fees
133.33
amortization
1,666.67
marketing
20,875.00
audit fees
7,300.00
bank charges
1,833.33
communication charges
27,916.67
commission payable
1,250,000.00
computer maintenance
2,691.67
computer software
1,216.67
courier charges
10,500.00
depreciation
1,250.00
electricity
6,291.67
entertainment
1,841.67
filling fees
300.00
fringe benefits tax
912.50
finance cost and interest
3,333.33
franchise fees and licenses
16,666.67
Insurance
8,208.33
Leasing of equipment
1,041.67
Legal fees
3,625.00
Licenses
2,666.67
Management fees
20,833.33
Motor vehicle expenses
6,666.67
Postage charges
5,416.67
Printing and stationery
6,191.67
Rent
8,680.00
Repairs and maintenance
7,083.33
Staff amenities
1,100.00
Salaries: Reservations
23,333.33
Operations
33,750.00
Accounts
29,333.33
other staff
54,166.67
subscriptions
625.00
travel expense
7,066.67
grand total
1,574,517.50
net profit
1,122,149.30
Brief document:
•The source of information is usually from all the ledger books of all accounts, which indicates the movement of cash into and out of the organization. Additionally, the balance sheet for the previous period could be used to arrive and projected expenses and possible revenues for the period. Furthermore, the current market trends could influence the figures in the budget in terms of approximated revenues and expenses (Nugus, 19).
•The budget could be affected by market forces such as inflation leading to either increase or decrease in the costs and projected tourist arrivals in the country as well as their levels of spending or purchasing power.
•Communication between the employees about issues on the budget could be through telephone calls to enable coordination of tasks related to the preparation process as well as possible changes.
•Allocation of the costs should be based on the benefits accrued from an activity. An activity, which accrues maximum benefits to the organization, should be allocated majority resources by the management. Allocation should also be based on previous costs by the organization in its activities.
•Peers and the general staff in the organization could be informed of the impact of the budgeting process. This is because they are affected directly in terms of their salaries and wages as well as execution of their tasks (Nugus, 31).
•Variances could be monitored through preparation of flexible budgets, actual expense budgets and estimated budgets. Such provides the level of variances for future use by the organization in preparation of better budgets.
•Variances could be corrected through the identification of the deviating factors from the actual budgets. Such variances could be identified and investigated to understand the causes of such deviations for eventual rectification.
• Efficiency of the budget could be evaluated through the attainment of specific goals. In addition, surpluses and deficits are also an indication of the failure or success of a budget.
• Improvements in budget include the ability to reduce the possible costs to be accrued in the various activities. Such could be through evaluation of the benefits accrued from activities, which consume majority of the resources and finding mechanisms to reduce such expenses.
• A financial report could be prepared on actual expenses and revenues provided for in receipts and expenses accounts in the organization ledger books. Preparation of reports is based =on actual costs are receipts by the organization (Nugus, 46).
Work Cited
Nugus, Sue. Financial planning using Excel: forecasting planning and budgeting techniques. Bostson: CIMA, 2009. Print.
