Comparison of Budget and Actual Company Performance

By comparing what is contained in the budget to what is achieved by realization of the company's work, it can be judged whether the company has been successful or less successful. From this comparison can also know the causes of deviations the budget with the realization, so that it can also know the weaknesses and forces that are owned company. It can be used as an ingredient consideration is very useful to develop plans (budget) as well as further more mature and more accurate.

Budget Main Uses

Budget has three main uses, namely:
1. working as a guide
budget serves as a working guideline and provide direction and simultaneously provide targets to be achieved by the activities of the company at a time when that will come.
2. as a means of coordinating the work
budget serves as a means of coordinating the work so that all the parts that are in the company can support each other, work together well, to go targets have been set. Thus the smooth running of the company will be more guaranteed.
3. working as a surveillance tool
budget also serves as a benchmark, as a comparative tool to assess (evaluate) realization of the company's activities later.

The state of the Economy Affects Life Company

General economic circumstances, both national and international influence the life of a company. Therefore companies are living in an economy that steady, his position will be more stable as well, making it possible to develop a budget that long-term. Company while living in a less stable economy also, making it less possible to structure a long-term budget.

Data and Information Affect Budget Selected

For companies have long standing, so as to have enough data, information and experience, have the possibility of preparing a long-term budget. conversely, for companies that have not been long standing, so do not have enough data and information, and yet have enough experience in the ups and downs of world economies and the "turnover time", should make short-term budget.

Data and information is the Complete Match With Long-Term Budget

Companies that have data and information as well as a complete experience have a greater chance for long-term budget than companies that do not have enough data and information required.

Budget Estimates That Accurate

To be able to do the assessment, a more accurate assessment, required data and complete information. Therefore, for companies that have data and information as well as a complete experience, it has the possibility to perform an accurate assessment, assessment for the long term.

Estimates Budget

Budget contains estimates of what is happening and what to do with the company in the future. A good budget is a budget that can be used as working guidelines, as a means of coordinating the work as well as surveillance tools work, is a budget that contains estimates are accurate, are not much different from the reality of the matter (realization) later. Budget that deviate much from the reality will be no longer useful as a working guideline, as a means of coordinating the work as well as surveillance tools work, so it should be revised.