Question

The master budget is the company’s plan for achieving their goals. The process has a distinct starting and ending point. In looking at the sales budget, the sales budget dictates what the other areas in the budget should look like. As the head of the sales area, what steps should be taken to ensure the budget is developed in a realistic way?

If bonuses are based on the sales, you as the sales manager want to ensure you and your team will receive the maximum bonus. How would you develop the sales budget? What effect could this have on the other areas of the budget?

Answer 1

A sales budget is an important first step in structuring an overall budget for a business . 1 There are different Steps should be taken to ensure the budget is developed in a readintic way as follows :- to Selection a Period for Sales Budget , while it is common to use an annual sales budget, some companies have quarters quarterly or even monthly sales budget, 2. Collection of Historical Sales Data for our Company! If we run an existing business, we should be able to Consult past sales records. If we are making a sales budget for annual Period, we should use sales data for the same period as the current budget we are preparing 3. Locate sales and Industry Information - Search for information on companies similar to ours. We can get actual sales data from the annual and quartely reports of public companies 4. Comparision of sales with Past Sales Periods... Asko sales people for their own personal projections for the up- - Coming sales period, as their first hand knowledge and experience can help us make accurate projections, 5. Research Current Market trends", - If market trends are Changing, they will must likely affects our company's fortunes as well. For example, if we make plastic cases for CDs and CD Sales are falling, we may have to revise our sales estimates down wards as well. - Next Page