AssignmentName: Unit 5 Individual Project Deliverable Length: 4–5 pages with the references Details: Today, many companies face budgetary challenges on a continual basis. Two critical aspects that...

Introduction
Money cares investment corporation is a small business composed of 8 employees, CEO,
Financier, A manger, 3 investment specialists and 2 clerical assistants, cu
ently the company is
in the process of determining the flaws in its cu
ent budgetary controls due to which most of the
variances went unfavorable. In the present assignment we will discuss the risks which company
faces due to flaws in budgetary control s and the possible ways to reduce or eliminate such risks.
Our analysis will focus mainly upon whole budgeting system and different types of budgets, our
analysis will help in concluding the assignment by listing down the problems and their solution
in the budgeting environment.
Budget a
ief outlook
Preparing a budget is very important for the profitability and success of any organization.
The external and internal environment is very tu
ulent and it becomes necessary for firms to
prepare themselves for the changing environment. Budgeting is method of forecasting the future.
A company prepares various budgets to estimate its activities in future. Yes it involves a lot of
time and expense, but at the same time it is very important to prepare budgets. Budgets are used
to estimate all the revenues and costs and then plan accordingly. Planning cannot be done
without preparing budgets. Another important use of budgets is that it is very useful in estimating
the performance. Budgets are used as standards and can be compared with the actual results to
calculate the variance. A company can only improve if the actual performance meets the desired
performance. But if there are no budgets, there are no desired performances estimated by the
company. Hence, the company has no scope for improving the actual results. With budgets, the
company can compare standard with actual and then take necessary control actions.
Successful implementation of budget depends upon the steps taken by the management in
its regards. In case the management does not take appropriate steps while implementing the
udgets than in such case budgeting process will fail and instead of offering benefits it will yield
negative results.
Problems faced by Money cares Investment Corporation
In the present situation Money cares Investment Corporation is facing certain risks in its
financial procedures which includes overspending in marketing supplies, transportation, and
workshop items specifically hospitality items such as food and drink for the customers. One
more serious concern is that there is no monitoring of expenses incu
ed by the investment
specialists to whom company has given credit card for the expenses mentioned above. The most
vulnerable areas of risk are inventory and internal controls. The reason why these two are
considered as the most venerable is that the organization is spending maximum money on these
items, in investment business money spent on...