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Financial Liquidity And Profitability Management

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The main purpose of the budget is to improve the performance of the architects by providing them with improved performance solutions. Budgeting has various amount of advantages associated with it. It helps in forecasting the total amount of income and expenditure that the company intends to incur through the implementation of the new changes to help out the professionals. Budgeting helps in forecasting the future data in comparison of the past data (Alexander, 2016). Budgeting helps in defining the strategic approach of the management in order to achieve the desired results that the company is looking for. This is one of the major advantages that the company can get from making proper budgets and following the same (Jones, 2017). They can also take expert advice in situations where they want to get better budgets that are free from all kind of mistakes. In the given case study budgeting will help the ABC Company in achieving the desired results that the company is looking for with the introduction of the new campaign for the help of the professionals. Budgeting will help the company in following a defined path and earning the maximum amount of revenue out of the same. In case of any variances between the set standards and the actual results, the company must analyze the reason of such variances and then get the desired result out of the same. The main as stated goal of the target campaign is to improve the use of practioner solutions by the professionals. This is the main purpose of the given prospects of the new budget for the company (Trieu, 2017).

The preparation of the budget will encompass collection of important data that might affect the total expenditure of the company. Expected revenue must also be considered that will help them in making a estimation of income from the given project of the company (Goldmann, 2016). The main expenditure that the company might incur will be in getting the required professionals who will train the employee; other expenditures might include the cost of development of the practioner solution for the professionals. The major income that the company will earn will be increased revenue from the total improvement that the professionals will have in their work. This will be an added advantage for the company. The company will need to study and do the market research that will help them in getting an idea on the total amount of expenditure and the income that the company will incur from the new targeted campaign (Belton, 2017). A budget for the company has been developed taking into consideration the expenses that the company might incur and also the revenues are also decided on the basis of the same. An extract from the proposed budget is given, and the important details with respect to the same and stated hereunder


The main strategy of the company while developing the budget should be to make sure that the main goals of the budget with respect to the preparation of the budget must be met. The company is looking for improving the overall aspects of the professionals so that there is an increment in the revenue with respect to the same. The major strategy of the company with respect of the overall budgeting procedure will be- To study the past data of the company, and get the maximum amount of information that they can get through market research. This will help them in better forecasting for the future and help the company in defining its course of action for the same. The company must try to use professional help for better analysis of the market to achieve better results through the broadcasting proposition (Bromwich & Scapens, 2016). This is how the company will work and define proper budgets for the project. The company should also take into consideration any unforeseen situations that the company might face with respect to the given project. The company might fail because of any situations that the company might not have given importance to. Thus the main aim must be to get the best results by taking into consideration all kind of expenses that the company will incur in this process of budgeting. These are the few strategies that the company must evaluate in order to get the best result for the company.



Alexander, F. (2016). The Changing Face of Accountability. The Journal of Higher Education, 71(4), 411-431.

Belton, P. (2017). Competitive Strategy: Creating and Sustaining Superior Performance. London: Macat International ltd.

Bromwich, M., & Scapens, R. (2016). Management Accounting Research: 25 years on. Management Accounting Research, 31, 1-9.

Goldmann, K. (2016). Financial Liquidity and Profitability Management in Practice of Polish Business. Financial Environment and Business Development, 4, 103-112.

Jones, P. (2017). Statistical Sampling and Risk Analysis in Auditing. NY: Routledge.

Trieu, V. (2017). Getting value from Business Intelligence systems: A review and research agenda. Decision Support Systems, 93, 111-124.


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