REFINING BUDGET
If the actual operating figures and budgeted figures are distant from each other, then this suggests a refining or revision of our budget.
- revision of room demand
- estimated room revenue
- rooms direct expenses
Departmental budget plans are commonly supported by detailed information gathered in the budget preparation process and recorded. These documents should be saved to provide an explanation of the reasoning behind the decisions made while making departmental budget plans. Such records also help to solve issues that arise during the budget review. The documents may also provide valuable assistance in the preparation of future budget plans.
Budgetary Control
Budgetary control, as the term suggests ,is the financial control through the proper implementation of budget , which means fixing responsibilities among the concerned managers for any deviations that may result between budgeted and actual results. It is a control technique because it provides a standard for evaluation of actual performance . Any deviation must be promptly brought to the notice and corrective actions must be taken on time.
Advantages of Budget and Budgetary control
1. It estimates uncertainty
2. It is the result of various brains .
3. It is good incentives to workers .
4. It helps in optimum use of resources .
5. It helps in effective co-ordination .
6. It helps in fixing responsibility .
7. It helps in spotlighting the deviations .
8. It helps in optimum use of Men , Material and Money.
9. ,it serves as a beacon light.