Manage Finance Essay Example | Topics and Well Written Essays - 3500 words

Manage Finance - Essay ExampleWoolworths has been one of the important consistent and no-hit seller in Australia with the adoption of various strategies like the fresh food people and the everyday downcast prices. Net direct cash flows show an increasing trend and also the degraded has been paying higher(prenominal) interim dividends to its sh arholders each year. The firm has witnessed a 10.1% increase in net profits after impose and an 8.8% increase in clams per share according to its financial reports. There has been an efficient management of labyrinthine sense sheet and profit and loss statements and approximately $8.2 billion has been paid to shareholders. WesfarmersWesfarmers is one of the largest retailers and listed firm in Australia and has retail operations in supermarkets, general merchandise, fuel and liquor operations etc. Wesfarmers has reported an increase of 15.8% earnings growth in 2010, as compared to 2009, with Coles supermarket alone delivering a 21% grow th. a) Budgetary puzzle outes that outlast in two of the Australian Public CompaniesBudgetary process is used for formulating calculates by referring to certain principles, procedures and practices. This process should involve people at different levels in the preparation of a budget. It requires careful planning and distract fixation of authority and responsibility. The budget targets should be realistic, and a good accounting system should be integrate within the organization. An efficient reporting system should be incorporated so that performance appraisal outhouse be undertaken. Budgeting process should be established in all segments of business, therefore, there arises a need for the active agent participation of all employees. The budgets should be flexible because there should always be room for each employee of the firm to participate. The budgetary process involves the set up of an organization for budgetary committee, a budget officer, a budget centre and a budget manual. The budget officer presides on the budget committee. The budget committee stern be further divided into various segments which consist of production autobus, gross sales manager, finance manager, accounts manager, force manager and research and development manager. The production manager prepares the production and plant utilization budget. The sales manager prepares the sales and advertisement cost budget. The finance manager prepares the receipts and payments budget. The accounts manager prepares the cost budget while the personnel manager prepares the labor budget. The research and development manager prepares a research budget. A budget manual is a document in which the responsibility of several executives should be documented and the budgetary control systems are clearly defined. On the basis of time, budgets evoke be classified as long, short or current budgets. On the basis of functions, budget can be classified as operating, financial and master budgets. Simil arly, budgets can also be classified as fixed or flexible. Both these firms follow an appropriate operating budget and there is a very important role of the CEO as well as the top financial management. b) Who is responsible to prepare the budget? Budget is thought to be one of the almost powerful financial tools used by the companies. Budget is the plan or proposal, which determines the activities of an organization. As mentioned earlier, budget whitethorn be long term and short term budget, where short term budgets cover a layover of one year whereas long term plans cover a period of