Due Week 8 and worth 120 points
One of the tasks you face as a manager, especially if your organization makes frequent business transactions, is that of preparing a budget. A budget is a tool used for planning and controlling your financial resources. It is a guideline for your future plan of action, expressed in financial terms within a set period of time. A budget does not have to be complex. However, it should support the strategic plan for the organization. We will need resources to achieve our goals and objectives.
For this assignment, you will focus on the operating budget. An operating budget shows the company’s projected revenue and associated expenses for an upcoming period—usually the next year. An operating budget starts with revenue and then shows each expense type. This includes variable costs or the costs that vary with sales, such as the cost of raw materials and production labor. The operating budget includes fixed costs, such as the monthly rent on office space or the monthly payment for a photocopier lease. The budget also includes operating expenses, such as interest on business loans, and the non-cash expense of depreciation. These items enable the company to compute its projected net income and net profit percentage.
Imagine you are the healthcare administrator for an actual non-profit clinic, home health agency, or outpatient surgery center. Your first task is to locate either the strategic plan for that organization or determine its strategic direction through the vision statement, mission/purpose statement, and strategic priorities/goals. You will also need to locate the audited financial statements for the organization.
Using the information from your research, develop a one-year operating budget for the chosen entity, which will include operating revenues and expenses. Include a 1–2 page document to justify the approach you use in constructing the operating budget with the strategic plan or strategic direction.
Upload the strategic plan or strategic direction and audited financial statements as an attachment or include the web link.
Complete your operating budget using Excel.
Support your work with at least 3 quality references, one being your course textbook.
The specific course learning outcome associated with this assignment is:
Develop a budget for a department within a healthcare organization.
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