Accounting and Finance for Engineers Part One Unit 7: Planning and budgeting
Planning and budgeting are essential to the financial well-being of any organisation. Without planning the organisation has no direction for the future and no visibility of the resources required to enable it to achieve its future. They are also key parts of an organisation’s financial and management accounting systems.
The budget is an integral part of the overall business plan. Being the financial component of the business plan it is where we see all the revenues and costs for the business moving into the future.
In this unit we are going to be looking at some basic definitions, the benefits of business planning in organisations, the planning hierarchy and the common approaches to budgeting before seeing how budgeting works in a case study example.
To make this unit really valuable to you, use the information contained as a guide to you exploring your own company’s financial management – this way your understanding and ability to apply what you are learning will be much greater. There are prompts to look for specific pieces of information and specific questions as you go through the unit.
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Professor Tony Ward
Tony is Professor of Engineering Management in the Department of Electronics at the University of York where he has worked for 25 years. Prior to that he spent 18 years in Industry as an electronic design engineer, technical manager and programme manager for a number of different companies. Within York he has held the position of Provost of Alcuin College and Director of the Centre for Excellence in Teaching and Learning in Enterprise. Externally he has been President of the European Association for Education in Electrical and Information Engineering and managed or participated in over 20 research projects. He has published 17 journal papers, over 100 conference papers, given over 20 invited lectures or keynotes and written or contributed to 8 books or formally published reports. His research is in area of Engineering Education and Entrepreneurship. He is the founder and Chairman of Skillsforge Ltd. A competence management and course booking spinout business from the University of York.
• To introduce you to the budgeting process;
• To place budgets in context with the organisations mission and objectives;
• To describe some of the common approaches to budgeting;
• To describe the structure of the budget and how it can be validated;
• To introduce you to financial control and variance
• Engineers who aspire to management positions
• Non-financial employees who want to learn the basics of accounting and finance
• Individuals wishing to start their own business