Chapter Name: Draft budgets
Description:The module focuses on equipping learners with the skills and knowledge required to develop and draft budgets for business operations. This module covers the key concepts of budgeting, including understanding different types of budgets (e.g., operational, capital, cash flow) and the processes involved in creating accurate and realistic budgets. Learners will learn how to gather financial data, set financial goals, allocate resources, and make informed estimates of income and expenditure
Purpuse:The purpose of this module is to provide learners with the necessary skills to draft effective budgets for a business or franchise. Budgets are essential for managing financial resources and ensuring that the business operates within its means while working towards its financial goals. This module aims to teach learners how to create budgets that reflect realistic business needs, financial constraints, and strategic objectives. By the end of this module, learners will be able to prepare detailed and practical budgets that help guide business decisions, improve financial management, and ensure profitability.
Rational:The rationale for this module is grounded in the importance of sound financial management in business success. Drafting a budget is a fundamental aspect of financial planning, as it provides a clear roadmap for how resources will be allocated and managed throughout a given period. Without an accurate and well-planned budget, businesses are at risk of overspending, failing to meet financial targets, or lacking sufficient funds for critical operations. This module helps learners understand the budgeting process and the significance of aligning financial goals with business strategy.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: The draft budget is compiled using the historical data collected as basis for creating the targeted figures and future trends
Learners must prepare a draft budget that reflects a logical use of historical performance data to forecast future income and expenses.
Assessment Questions
Assessment 1 : Analyse historical data
Learners must review and interpret past financial data to identify trends and inform budget planning.
Assessment 2 : Draft financial forecasts
Learners are expected to use historical and market data to create financial projections for revenue and expenses.
Assessment 3 : Set targets
Learners must define specific, measurable financial targets (e.g., income, cost reduction) for the budget period.