Business budgeting is an extremely important financial tool available to any enterprise and it’s a big area of study for the CMA exam. Maintaining both short and long-term financial plans enable enterprises to control their cash flow, profitability, cost, etc. Here’s a list of the top 10 best practices of budgeting: Best Practice #1: Short & Long-Term Plans The most … Read More
CMA Exam Study Notes: The Budget Development Process
The budget development process commonly includes the preparation of budget guidelines and directives; a mechanism for synchronizing the budget preparation and review; procedures to expedite budget review, analysis, modification, and adoption; reporting on variances; and use of the variance reports. The whole process can be classified under the following steps: Step #1: Budget Guidelines & Directives This is the first … Read More
CMA Exam Study Notes: Characteristics of Successful Budgeting
What are the most important characteristics of successful budgeting to learn about for the CMA exam? To be successful, a budget must be Well-Planned, Flexible, Realistic, and Clearly Communicated. The Budget Must Address the Enterprise’s Goals Essentially, a budget must begin with the enterprise’s short and long-term plans and goals. The budget should not just to recreate the enterprise’s previous … Read More
Establishing Goals & Objectives
“If you want a virtue, act as if you already have it and then it will be yours”, Aristotle Why plan? The ultimate goal of public and private companies is to increase shareholder wealth. To this end, companies must remain competitive and continuously attempt to out-perform their competitors and increase market share. In order to do so, companies must develop … Read More
