When it comes to budgeting, organizations often follow a functional and strategic hierarchy to make decisions. Generally, we differentiate between “bottom-up” and “top-down” approaches. The Bottom-Up Approach The bottom-up approach progresses upwards, starting from the lowest level of details. Finance professionals compile various inputs in a comprehensive model the...

Financial statements are prepared according to a specific set of rules – either local accounting principles or International Financial Reporting Standards. A question then arises, “Who oversees whether companies comply with financial regulation guidelines?” Use of Auditor’s Report Financial statements provide valuable information about the financial performance and position...

A Budget is an organization’s operational plan for the future. It illustrates a firm’s estimation of expected revenue and expenses as well as the inflow of resources and their allocation. Why Do Companies Need a Budget? Through budgeting, companies chart the course of their business in an unpredictable world....