You are a staff member in the finance department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.
You are a staff member in the finance department at Nouveau Health
Assignment Description: You are a staff member in the finance department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.
Complete the following:
Prepare next year’s financial plan and operational budget.
Note: Use the budget you from Unit 1; it did not take into account the growth of the new facility. The CEO has asked that you expand that budget and provide a finalized budget that will take into account the new services offered. The CEO has stated that there is $3 million that you can incorporate in to the budget for additional staffing, services, maintenance, and so forth.
Moreover, use of APA style. Finally, students are to reference at least 2 scholarly sources for this task.
What is an Operating Budget?
An operating budget consists of all revenues and expenses over a period of time (typically a quarter or a year) which a corporation, government (see the U.S. 2017 Budget), or organization uses to plan its operations. An operating budget is prepare d in advance of a reporting period as a goal. Or plan that the business expects to achieve. Below is an example of a downloadable budget template and also an explanation of how to prepare one.
Components of an Operating Budget
Firstly, the main components of an operations budget are in outline below. Each business is unique and every industry has its nuances. But these items are general enough to apply to most industries.
Revenue is usually broken down into its drivers and components. It’s possible to forecast revenue on a year-over-year basis, but usually, more detail is required by breaking revenue down into its underlying components.