12-Accounting and Budgeting Dr. Zhan Xinhuan School of Sports, JUFE

Accounting会计、账单 The collection of financial data about an organization.

Accounting Balance sheet Income statement Cash flow analysis

Balance sheet 资产负债表 Balance sheet is considered one of the most important financial statements. Shows changes in a business over a period of time. Shows growth or decline in various phases of the business Shows the business’s ability to pay debts Through ratios, shows financial positions.

Content of a balance sheet Assets (资产): what a business owns (cash assets, long-term investment, a and fixed assets) Depreciation(折旧、贬值): a legal term by businesses to lower the value of an asset as it gets older. Liabilities(负债、债务)：a business’s debt, how much money a business owns to other parties.

Income statement (损益表、利润表) Is used to analyse the success of a business; Often used by bankers or investors when it comes to making decisions about lending to or investing in a business. Sales Operating expenses （营业费用，经常性开支） Net income(net profit)净收益

Cash flow analysis Cash flow document is a detailed accounting of receipts (revenues) and disbursements (expenses). It only shows the cash in and cash out. It does not show the financial condition or the profit or loss. Journals 账本 Sales journals: record cash sales and receipts of daily income. Disbursement journals: to reflect expenditures specifically defined by the individual business.

Budgeting 制定预算 What are the advantages of budgeting? Non-profit enterprise/ part of a governmental agency Budget request to its superior body What are the advantages of budgeting?

Types of budget Object classification budget 支出用途分类预算 Program budget 项目预算：包含以下内容 agency goals, program goals & unique features Zero-based budget: Capital budget (资本预算)： ten years, long range budget items

Budget process Examine the organization’s mission, goals and objectives; Research the organization’s strengths and resources relative to the future needs; Include all key players in the budget process; Review the information and data gathered; Prepare the budget by using the budget type; Examine the budget for accuracy, feasibility and reality; Submit the budget to a few key people for additional critical analysis; Prepare and execute a formal budget presentation; Implement the budget; Audit (审计) the budget

Questions What are the two most important tasks that a manager have to master when it comes to budgets?