Thesis on Preparation of Budget and Analysis of Variances of Real Estate Projects

Preparation of Budget and Analysis of Variances of Real Estate Projects-  In Context of Concord Real Estate and Building Products Ltd

Effective and efficient use of resources available to a company is vital for its growth and sustenance. Proper Planning is required to use the scarce resources so that the company can maximize the benefits from their uses. Control should also be there to ensure that plans actually are carried out properly to minimize the deviation from plan and maintained to achieve the goal of the organizations. An after action reviews of the old plan helps a new plan to be more accurate and focused. All these things are incorporated in a good budget. A budget is therefore very much important and crucial as it ensures proper planning and subsequent monitoring of the plan to make the best use of the resources available to a company and thus helps the company to attain its financial objectives.
A well designed budget is not all the responsibility of Finance Department. Operational department has great responsibility in designing the Budget. Co-ordination among the departments is very important for a budget. The management of the company can undertake a budgetary control measure so that they can easily monitor the progress and deviation from the plan and furthermore develop a strong internal organizational control over all the activities of the company both directly and indirectly.

Concord Group of Companies uses the Budgeting technique which is noteworthy. Its sister concern “Concord Real Estate and Building Products Ltd.” relies heavily on budget. The efforts and techniques applied for preparing the budget is very encouraging which has helped the company to establish the brand of their own in the industry. What more the company can do to make its budgeting more effective is to monitor the progress against the budget carefully and ensure timely completion of the projects so that variances can be minimized.