What Is the Role of Budgets & Performance Reports?
Overview Small business owners often develop and use various management tools for running their companies. Business management tools may relate to the analysis of financial information from the company and performance tools for managing company processes. Budgets are common financial tools used to mange a company’s finances; performance reports often relate to an assessment of specific functions in small business environments. Facts Financial budgets usually are developed by a company’s accounting or finance departments. Smaller businesses may need the business owner or entrepreneur to complete this function. Most budgets contain specific dollar amounts for allowable expenditures on each business function. A performance report usually is a specific piece of the company’s overall budget management system. These reports commonly list specific traits or attributes relating to various budget variances along with other information necessary to the budget situation. Plan Future Expenditures
