and step 5

I wrote the KCQ on the wrong chapter rookie uni mistakes.... lol

BUDGET FOR THE SHORT TERM

This chapter about accounting budgets and how to help or hinder management planning and the way it reads regarding has been rather insightful. It has brought together several floating thoughts about why does management use budgets more than other forms of documenting ideas? In the introduction Martin talks on communicating clear plans of first steps in long journeys. It is helping me to reflect on the past experiences of budgets in groups and organisations that seem to over take the conversation of what the discussion is really about. Working collectively to bring about a common idea that everyone is inspired about. The introduction refers to budgets as measures of resources and their short term use being consistent with planning. Which is really the vision of managers and directives. To bring together the ideas and values into a measurable format that is consistent, budgeting can easily support that idea, if the way in which the manager assigns costs is usable useful and readily available as needed as addressed in chapter 6.

Martin refers to budgeting as first and next steps, of getting work done. I love the simplicity of how this is chucked down. Ideally management is about developing people, this is missed with alot of practises when it becomes about the numbers and the output of products and services. Budgeting is detailing the how to of visionary ideas. It is an interesting way of looking at it. In the past I have paid little attention to the whys and hows of budgeting. These budget parts of meetings are usually long and boring and haven’t had the explanation as to the reasons why they hold so much weight until reading this chapter addressing first steps and next steps of managing work and the development of ideas and people. On occasion I have I have tried training in book keeping only to drop out, as understanding the why, in this chapter is the part of business that is so important. Endeavouring to create detailed short term planning, the coordination between differing teams , communicating and strategizing is starting to piece together a clear picture of the importance as to why accounting underpinning so much business practice. The account of baggage handling and the process management went through to create a clear plan of improving the turn around of baggage was rather insightful and was really interesting. This setting intention and measuring its success. My thoughts are over what time frames was this achieved, and the process of measurement used.

The budget of the chocolate factory are fairly straight forward when looking at cash flow. The overall investment being used to create income and the flow of the input and expenses. It is clear budgets need to be specific to manage the cash flow other wise important details of deferred accounts can be missed as the budgeted amounts are added and subtracted over time.

The balance sheet and the interpretation of them. Gives language to other forms of decision-making movements as well. That are descriptive in another way from the cash flow statements. Balance score card are over all picture of management processes of control and the measurements of performance that allow for numbers and targets to be specific and timely.

This chapter has been my favourite so far, it helps me realise the exposure and understanding I already have regarding the reading of basic budgeting documentation, but more importantly how decision making can be created through the process of reading between the lines of the numbers.