Budgeting preparation for a merchandising company Case company: Nhat Quang LLC
Hoang, Mai Huong (2019)
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019111821453
https://urn.fi/URN:NBN:fi:amk-2019111821453
Tiivistelmä
This thesis focuses on setting up a budgeting process for Nhat Quang limited liability company, which is an electrical equipment and supplies retailer founded in 2014. The thesis's outcome is an Excel budgeting tool, financial analyses and user tool guide. This thesis is a tool for the entity to operate financially and make the right decisions in business.
This thesis is a product-based thesis, including a theoretical part and an empirical one, which follows the zipper structure. There are five project tasks to be implemented in succession. The first and second tasks include designing the theoretical framework and establishing the relationship between theoretical and empirical sections. Cost behaviour and financial situation analysis are addressed in task three. The result of the thesis is illustrated in task four, which is the process of building a master budget and performance evaluation. The master budget comprises an operating budget and a financial budget, which describes the business result anticipation in the next period. Based on different operating modes, the author designs separate budgets to show profitability from each operating mode clearly.
The performance analysis is created based on the master budget by using financial ratio analysis, profitability analysis, and cost-volume profit analysis. Next, the toolkit is introduced with detailed instructions and steps on how to utilize the budget package. The last task describes the evaluation of the project and the author's reflection on the learning.
The author conducted interviews with the owner, and the internal accountant of the company to collect primary data. Desktop research including documentaries, textbooks and articles study was the secondary research method. Microsoft Excel and Microsoft Word were tools that assisted the author to facilitate the project.
Overall, the outcome makes the budgeting process more well-organized, which assists the manager to identify the reason when the loss occurs. There were some challenges during the process of implementation. However, the project helped the author develop problem-solving and project management skills.
This thesis is a product-based thesis, including a theoretical part and an empirical one, which follows the zipper structure. There are five project tasks to be implemented in succession. The first and second tasks include designing the theoretical framework and establishing the relationship between theoretical and empirical sections. Cost behaviour and financial situation analysis are addressed in task three. The result of the thesis is illustrated in task four, which is the process of building a master budget and performance evaluation. The master budget comprises an operating budget and a financial budget, which describes the business result anticipation in the next period. Based on different operating modes, the author designs separate budgets to show profitability from each operating mode clearly.
The performance analysis is created based on the master budget by using financial ratio analysis, profitability analysis, and cost-volume profit analysis. Next, the toolkit is introduced with detailed instructions and steps on how to utilize the budget package. The last task describes the evaluation of the project and the author's reflection on the learning.
The author conducted interviews with the owner, and the internal accountant of the company to collect primary data. Desktop research including documentaries, textbooks and articles study was the secondary research method. Microsoft Excel and Microsoft Word were tools that assisted the author to facilitate the project.
Overall, the outcome makes the budgeting process more well-organized, which assists the manager to identify the reason when the loss occurs. There were some challenges during the process of implementation. However, the project helped the author develop problem-solving and project management skills.