Budget Creation

Title Your name Subject and Section Professor’s Name Date Budget Analysis This three-month budget analysis comprises the revenue, salaries, and operating costs. The total revenue is equal to $36,500. From here, the actual receipts equal $ 35,600, providing a shortfall of $900. These amounts are secondary to the five clients who paid and two other clients with outstanding deficits. These are good strategies to collect revenue and overcome this and operational stability. Furthermore, the most significant expense category at $42,900 is projected salaries. It also corresponds to the appropriate workforce planning and reasonable cost management in that salary allocations fall within budgeted expectations. When operational conditions change periodically, it results in resource efficiency. Consequently, advertising ($6,000), insurance ($4,500), subscriptions ($2,700), and shipping or storage. ($1,500) equal up to $33,600 in demo expenses. Telephone and delivery costs are variable and within allocated budgets. In addition, budget analysis helps accurately allocate operating costs regarding the organization's pursuit of its operational and strategic goals. Considering all of these numbers, contingency planning must be put up. This refers to optimistic and realistic scenarios as well as catastrophic ones. This would be optimistic enough to pay the shortfall with full client payment. Realistic scenarios delay payments, and planning would reduce discretionary costs, such as advertisement, to shield from financial risks (Bettner, 2018; Silva et al., 2016). Next, the stable contract pertains to the clients’ stable salaries with stable overheads. The variable costs only utilize themselves to take the form of utilities and shipping, which are very little compared to the fixed costs, which are dominant (UNESCWA, 2022). These process models also include assumptions that must be repeatedly reviewed concerning economic uncertainties such as inflationary pressures. Finally, the budget is fiscally sound but requires correction regarding revenue collection and contingency strategies to make it fiscally robust. Ref...