You can use the budget control to plan, coordinate and control the activities of the business though
the following stages:
1. Set budget standards: setting standard and objectives.
2. Measure performance: measuring performance against budget requires you to check actual
achieved figures continually against your budget predictions.
3. Identify problem areas: which means investigating areas which are out of line with your
budget.
4. Take corrective action: requires you to take action to bring your budget back into line.
This cycle is a continuous process that is repeated on a monthly basis. The “rule” is to review your
budget at appropriate intervals for your business. This will allow you to take corrective action as
soon as possible in order to minimize the impact of any unexpected problems in the business.
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