SITXFIN004 Prepare And Monitor Budgets

This paper presents two different operational plans for two different restaurant businesses. One Restaurant works in two shifts and the second one works in only one shift. For both of them, below are two different plans for this that are presented below:

Operational plan I

As per the assumption of the operation of the restaurant, below are a few suggestions for the organization that are:

• The operation staff of the restaurant needs to divide into two shifts (Shift timing Morning 10 am – 4 pm and (4 pm – 10 pm) along with the workforce that must be divided equally as per their ability and skills.
• Shift 1 – Divide 12 staff members of the restaurants that include 3 cooks, 6 waiters, 1 cleaning staff, 1 manager, and 1 Receptionist for welcoming customers.
• Shift 2 – Divide 12 staff members of the restaurants that include 4 cooks, 6 waiters, 1 Manager, 1 Receptionist and 1 staff for cleaning purposes.

Every day, the table, the bedding, and the room should be thoroughly cleaned to maintain a clean and orderly appearance. Two times a day, the toilets should be cleaned by the cleaning crew. The receptionist should be alerted to the fact that there is a change in the billing machine. The kitchen crew is responsible for ensuring that the kitchen is kept clean and that all necessary items are present or not. If a certain substance is scarce, it must be communicated to the appropriate management personnel. The manager is in charge of ensuring that the restaurant runs smoothly at all times. In addition to resolving any problems that may develop, the manager has the responsibility of ensuring that every member performs their particular responsibilities appropriately.

Waiters have an important job to perform since they come into close touch with the client. They should ensure that the consumer receives the greatest service possible from the establishment. They must give services as quickly as feasible and in the most efficient manner. All members should arrive one hour early to get the day’s agenda briefing. The restaurant wants to improve their sales by 10%, thus the waiter should make an effort to upsell the items on the menu.

Budget Information Plan – 1

Operational plan II for Second Restaurant

• Maintaining one shift should be the only thing that has to be done. Staff employees should be available to work from 10 a.m. until 10 p.m. on the right.

Every day, the manager is responsible for providing briefings to all of the members of the team.

The cleaning crew will make certain that everything, including the kitchen, is clean and free of debris. It is necessary to do a thorough cleaning. It is the manager’s responsibility to ensure that all of the obligations are carried out by the members of the team. Any issue that may develop as a result of the actions of the one who is accountable for the specific scenario. The acquisition of any kind of raw materials or kitchen stock should be handled by the kitchen personnel. The waiter is responsible for ensuring that the appropriate ambience is maintained. The manager will not be accountable for any problems that may arise, and any such problems must be resolved by the respectable person who is responsible for that specific task.

The business wants to establish itself in the Chinese market as a leading restaurant in the area since they have a talented chef that specialises in Chinese cuisine. As a result, greater attention should be paid to it.

Budget Information Plan – 2

Ramifications of Budget Modifications

The creation of a budget is quite significant since it provides us with an idea of the overall costs that may be spent in the future. Although the budget may not perfectly correspond to reality, it provides us with a reasonable estimate of the amount of spending that we will incur. The budget is formed by taking into consideration the costs from the previous year. When we look at the expenses that were incurred in the previous financial year, we may obtain a good indication of how much budget will be needed this year.

There are a plethora of elements that must be taken into consideration while modifying a budget. We must review the budget from the previous year and create the budget following that information. The budget is complex, and it is difficult to discern which elements will play a part in it, as well as what modifications will be made from the budget that was adopted the previous year.

Allocation of funds according to Planned Budget

Budgeting is a very delicate process; it is based on calculated assumptions, therefore we can never be completely certain of the outcome of the budget, but we must get as near as possible to it. Every year, the quantity of spending varies, and adjustments to the budget must be made by these variations (Schmidgall, Hayes and Ninemeier, 2003). Finding out what the elements are that will change is difficult, let alone predicting them. We strive to budget as closely as possible to the actual costs by using spreadsheets.

The funds that have been assigned for a certain set of activities are to be allocated in the same manner as much as feasible to ensure consistency. Whenever there is a pressing need to make a change, the amount that has been set aside in the budget should be reduced to the bare minimum. It is important to remember that a budget is a comprehensive plan or framework upon which the company function for the whole fiscal year will be built and that it is created with a variety of considerations in mind (Dies, 2017). So, if we make significant changes to the budget, this may have a detrimental impact on the company.

Educate employees on the necessity of budget management and how to keep their coworkers and other stakeholders informed about the budget situation.

The budget of the organisation should be communicated to the stakeholders so that they have a clear understanding of the organization’s actions and may respond appropriately. This will assist them in staying on track with the budget, and they will also have a better understanding of how much the firm is prepared to spend on what and how to behave per that (Shim and Siegel, 2008).

The resources are to be separated into many groups based on the costs that they incur each month. Certain resources have regular expenditures, and other resources have expenses that are not as frequent. In addition, certain expenditures arise in an organisation that is unavoidable due to the nature of the business (Berkau, 2020). These expenditures are sorted into categories, and then a budget is assigned to each category, and the remaining funds are distributed among the various expenses.

Maintain records of all allocated resource

With the budget, the firm and its stakeholders were able to establish a framework for how they would operate, as well as a guideline for how far the company is ready to go in terms of spending and what its limitations are. Budgeting is a critical component in the operation of a business organisation. It would be incredibly difficult for the firm and its stakeholders to perform properly if the budget is not in place to assist them (Brown, 2007). In this instance, the budget must be treated with the highest care and kept as rigid as possible; if the rules must be bent, it must be determined if doing so is beneficial to the organisation or detrimental, to avoid any bad impact on the organization’s financial position.

References

Berkau, C. 2020. Management Accounting: International Syllabus. UVK Verlag.

Brown, D. 2007. The Restaurant Manager’s Handbook: How to Set Up, Operate, and Manage a Financially. Atlantic Publishing Company.

Dies, J. 2017. How to Start a Restaurant on a Budget. CreateSpace Independent Publishing Platform.

Schmidgall, R., Hayes, D. and Ninemeier, J. 2003. Restaurant Financial Basics. Wiley.

Shim, J. and Siegel, J. 2008. Budgeting Basics and Beyond. John Wiley & Sons.