Budget monitoring is the process of tracking and reviewing the actual income and expenditure of a project or organization against the planned budget. Budget monitoring helps you to identify any deviations, risks, or opportunities that may affect the performance or sustainability of your project or organization. Budget monitoring also helps you to report on the financial status and progress of your project or organization to stakeholders, donors, or auditors.
Scope Budget Monitoring: Focuses specifically on comparing actual financial results to the planned budget Tracks variances between budgeted and actual revenues, expenses, and other financial metrics Financial Management: Encompasses a broader range of financial activities and processes. Includes budgeting, but also covers areas like accounting, financial reporting, investment management, risk management, etc. Purpose Budget Monitoring: Aims to ensure adherence to the approved budget. Identifies deviations from the budget to enable corrective actions Financial Management: Focuses on optimizing the organization's financial performance and position. Makes strategic financial decisions to support long-term goals
Budget monitoring refers to the continuous tracking and evaluation of an organization's financial performance in relation to its planned budget. It involves monitoring and analyzing expenditures, revenues, and resource utilization to identify any variances or deviations from the budgeted amounts. The process enables the organization to assess the effectiveness of budget implementation, control costs, and make informed decisions to maintain financial stability. By identifying discrepancies, budget monitoring helps in taking timely corrective actions to ensure adherence to the budget and achieve financial goals.
Budget monitoring entails the process of tracking, analysing financial activities in comparison to prior budgets. During budget monitoring the reports must be examined monthly and action must be taken when there is a significant variant. They are four steps of preparation, authorisation, execution and accountability. This monitoring is important as it allows the business to access the effectiveness of budget implementation and making informed decision, so the business can be financially stable.
It compares actual spending to the budget, highlighting variances. Financial management, on the other hand, is the steering wheel. It encompasses the entire financial landscape, from planning and budgeting to monitoring, analysis, and decision-making. While monitoring is essential for control, financial management provides strategic direction. Think of it as the difference between checking your car's speed and deciding where to drive next.
Budget monitoring is the rearview mirror of finance. It tracks spending against a set plan. Think of it as checking if you're staying within your monthly grocery budget. Financial management is the GPS. It's about charting a course, making strategic decisions, and ensuring long-term financial health. It's like deciding whether to invest in stocks or bonds for retirement. Budget monitoring is reactive, focusing on past spending. Financial management is proactive, shaping future outcomes. While both are crucial, financial management provides a broader perspective, driving growth and sustainability.
Financial management is the process of planning, organizing, directing, and controlling the financial resources and activities of a project or organization. Financial management involves setting financial goals and strategies, preparing and managing budgets, accounting and reporting, auditing and compliance, and ensuring financial sustainability and accountability. Financial management helps you to achieve your project or organization's objectives and mission, and to optimize the use of your financial resources.
Financial management encompasses a range of activities related to the effective management of an organization's financial resources. Here are key components of financial management: Financial Planning: Developing financial goals, strategies, and budgets. Capital Budgeting: Evaluating and selecting investment opportunities. Risk Management: Identifying and mitigating financial risks. Financial Analysis: Assessing financial statements and performance indicators. Cash Flow Management: Monitoring and optimizing cash flows. Financing Decisions: Determining the sources and structure of funds. Financial Reporting: Preparing and presenting financial statements and reports.
Costuma-se haver confusão entre gestão financeira, que são os recursos disponíveis de caixa, bancos; com gestão econômica, que é lucro. Devemos balancear os prazos médios de pagamentos com os prazos médios de recebimento, preferencialmente na média pagar depois que receber. Caso a média seja pagar antes de receber, poderá haver lucro sem caixa. CUIDADO. Até o EBITDA pode ser questionado, com isso. A palavra lucro é muito forte, e em minha opinião nos critérios contábeis, deveria tratado também os prazos médios.
Budget monitoring and financial management differ in several ways, such as scope, frequency, purpose, and skills. Budget monitoring focuses on comparing the actual and planned budget and is usually done periodically, while financial management covers the whole cycle of financial planning, execution, and evaluation and is a continuous process. Furthermore, budget monitoring aims to measure and report on the financial performance and status of a project or organization, while financial management aims to plan and manage the financial resources and activities. In terms of skills, budget monitoring requires data analysis, variance analysis, reporting, and communication; financial management requires budgeting, accounting, auditing, compliance, and strategic thinking.
Budget monitoring focuses on tracking actual financial performance against the planned budget in the short term, ensuring adherence to budgetary guidelines. Financial management encompasses a broader range of activities, including long-term financial planning, decision-making, and resource allocation, aiming for overall financial health and sustainability. Budget monitoring is more detailed and specific, analyzing individual line items for deviations, while financial management takes a more aggregated and strategic perspective, evaluating financial health and making informed decisions for organizational growth.
I think the biggest difference is how they are viewed. Budget Management tends to be more focused on internal use, whereas Financial Management tends to be more externally focused. Financial Management includes what would be reported to external parties, whether customers as part of their due diligence of their suppliers financial stability, to the markets for publicly traded companies, and to regulators.
Budget management is a more locally devolved activity and should be closely aligned with operational/project management. At budget management and monitoring level, any changes will be clearly understood through the lens of (and aligned with) operational or project goals. Financial management is slightly removed from this day-to-day detail and is focussed on overall financial performance, adhering to accounting/audit processes and usually requires specialisation.
Monitoramento orçamentário é acompanhar os dados reais versus o orçamento do ano corrente, e analisar as principais variações. Gestão financeira é algo um pouco mais abrangente. Envolve estratégias de planejamento financeiro de LP, criação de novos cenários, gestão de riscos, alocação de recursos. Ambos são importantes e devem ser acompanhados/ajustados.
No longo prazo ambos são semelhantes, mas no curto e médio prazo se diferem nos prazos. Na minha opinião ambos devem ser balanceados, começando com prazos médios de pagamentos igual ou maior que os prazos médios de recebimento. Fazendo isso, o orçamento (econômico) também garantirá a gestão financeira.
Budget monitoring and financial management are not mutually exclusive, but rather complementary and interdependent processes. Budget monitoring is an integral part of financial management, as it provides feedback and information that can inform and improve financial planning and decision making. Likewise, financial management is the foundation of budget monitoring, as it provides the budget framework and guidelines that enable budget monitoring. Budget monitoring and financial management work together to ensure the financial health and success of a project or organization.
Ambos precisam ser acompanhados, porque estão relacionados. O monitoramento orçamentário é uma parte crucial da gestão financeira, que, por sua vez, abrange uma camada mais ampla de atividades voltadas para a saúde financeira e o sucesso estratégico de uma organização.
Eles são semelhantes somente no longo prazo. No curto e médio prazo, eles podem ser diferentes devido ao regime de competência (contabilidade) e regime de caixa (Fluxo de caixa). Podemos dizer que ambos são, como irmão, que podem andar juntos lado a lado, no entando a qualquer momento podem seguir rumos diferentes. O bom resultado empresarial se abrange na administração de ambos.
Budget monitoring and financial management are skills that can be improved with practice and learning. To do this, you should use appropriate tools and systems such as spreadsheets, accounting software, or online platforms. Additionally, you should follow the principles and rules of financial management and budget monitoring, like accuracy, transparency, consistency, and accountability. It is also important to seek feedback and support from your colleagues, managers, stakeholders, donors, or auditors to learn from their insights and suggestions. Lastly, keep learning and updating your knowledge and skills on budget monitoring and financial management by taking courses, reading books or articles, or attending workshops or webinars.
Use da melhor forma possível as ferramentas que tiver ao seu alcance. Mas, por detrás, parametrize os critérios contábeis e também financeiros. A junção destes, tornam o cérebro eletrônico coach, direcionando o caminho certo para a boa saúde empresarial
Budget monitoring and financial management are beneficial for your project or organization, as they can help you to achieve your goals and objectives, enhance your performance and efficiency, demonstrate your impact and accountability, and increase your credibility and trust. By planning and managing your financial resources and activities effectively, you can ensure that you have enough funds and capacity to deliver your outputs and outcomes. By tracking and reviewing your income and expenditure against your budget, you can identify any gaps, issues, or opportunities that may affect your performance or efficiency. Furthermore, by reporting on your financial status to stakeholders, donors, or auditors, you can demonstrate your impact and accountability. Finally, by following best practices and standards for budget monitoring and financial management, you can build positive relationships with stakeholders, donors, or auditors.
O Orçamento pode ser econômico (lucrativadade e valuation) e financeiro (fluxo de caixa. Convém, na minha opinião, integrá-los sempre. Acompanhar as variáveis controláveis (custo, despesa e investimento) perante a receita de venda, pode garantir a lucratividade, e por detrás dos prazos médios (pagamento e recebimento), pode garantir o caixa. De autoriza dos pesquisadores de nossa empresa, criamos um Plano de Contas Contábil (econômico), com um nível a mais: o Fluxo de Caixa (gerando as respectivas partidas dobradas também em regime de caixa). Isto torna a contabilidade econômico-financeira!
Na minha opinião o Orçamento deve abranger tanto a gestão econômica, apontada no DRE e Balanço Patrimonial, quanto a gestão financeira, apontada no fluxo de caixa, que são as disponibilidades reais de caixa. Elas são interdependentes apenas nos prazos (pagamento e recebimento), que balanceados podem andar juntas. As regras contábeis não levam em consideração o balanceamento dos prazos, dexando o EBITDA questionável.