Annual Budget

CIOP training and certification program is delivered over 90 hours of classroom/online training in corporate and retail batches. The uniqueness of this program is that it addresses the modern supply chain trends without loosing the traditional aspects. This program prepares the participants for supply chain management in 2025 and beyond by infusing the learnings need in the areas of industry 4.0 such as Internet of Things (IoT), Blockchain, Artificial Intelligence (AI), Machine Learning (M/L) and Robotic Process Automation (RPA). It also deals with process improvement philosophies, methods, and tools such as Microsoft Visio. The program deals with almost 50+ supply chain analysis techniques.

An annual budget is a statement of a companies income and expenditure for a twelve-month period. Annual budgets are regarded as balanced when estimated expenses are equal to estimated revenues. If revenues exceed expenses, it is considered to be in excess of the budgeted revenue and if expenses exceed revenues, it is considered to be in deficit. A balance is 

maintained between total revenue and total expenses. The purpose of an annual budget is to ensure that a business is able to meet its objectives through a well-planned management process. The management of resources and expenditures are the objectives of an annual budget.

An annual budget is prepared after considering all relevant information such as the activities, costs and revenues of the business, the financial strength of the organization, cash flow, working capital, and the debt and assets of the business. These data are used to prepare and formulate an annual budget. Most businesses maintain their budgets for one or two years. A significant change in the fiscal resources or fiscal performance can result in a sudden adjustment to the budget.

In most cases, financial reports are prepared for the first five years of the companies operations. After this period, financial reports are usually prepared for the next four calendar years. The four calendar years period of a budget gives both an opportunity to review how activities are progressing and identify areas of opportunity to further improve performance. After the preparation of the budget for the next four years, it is reviewed periodically to identify any areas that require attention to make adjustments to the budget. This process of periodically reviewing and making changes to an annual budget provides the necessary vigilance for ensuring that the organization is operating within a budget that is consistent with its objective.

Related Articles

How Procurement Can Help Build a Better Budget
Total supply chain cost model
IT budget
Coop Budgeting
Inventory Budget Analysis