Stages in Budgeting Process
Budgeting is such an essential part for organization and it move through numbers of procedure. The process for the preparation of budget might be varied from one organization to another before it could be finally accepted. Here are some sort of important stages in budgeting process as follow:
Stage 1: Establish who will take responsibility for the budget-setting process
It is crucial part to ensure that the committee who responsible to the budget has real authority within the organization (e.g. the budget officer, functional heads).
Stage 2: Communicate budget guidelines and policy to relevant managers
The long-term plans and objectives of the business should be the foundation before drawing up the budgets. …show more content…
The budget-setting process does not stop until and unless the actual performance is compared with planned performance. The comparison then need for the manager to analyze, investigate and interpret the possible reason for the differences.
Steps to set up a credit control system
A good credit control management system/policy will ensure a prompt payment from customer to Oxford Ltd and thus ensure sufficient liquid cash to run business thoroughly and avoid bankruptcy risk. The following are steps in which the company could undertake to attain effective credit control system:
I. Set up a detailed credit control system: It allow the company in identifying any invoices that have been raised, reach the customer or paid. The management should ensure that each customer has single file which contain details including business name, address, postal address for invoices, contact name and number for invoice enquiries.
II. Credit-check customers: Oxford limited could approach customer’s bank or other equitable suppliers or even the credit agency for references to see their creditworthiness and ability to pay the debts or likely any problem in paying on time.
III. Decide on general payment terms: Oxford Ltd should clearly mention on customer’s invoice about the credit payment terms (e.g. available date