Budgeting and planning system

A database can be defined as a shared, integrated computer structure that stores a collection of end-user data and metadata. The integration and management of end-user data are achieved. (Carlos Coronel, Steven Morris, and Peter Rob, 2015)

A database management system (DBMS) is a collection of programs that manages the database structure and controls access to the data stored in the database. This takes up part in forming a debase system, an organization of components that define and regulate the collection, storage, management, and use of data within a database environment. It may include the general components of a system, including software, hardware, personnel, and series of procedures and data.

Budgeting and planning systems

Budgeting is often described as a formal, quantitative expression of an organization’s strategic plans, providing managers and employees with direction to ensure effort and motivation are accurately pointed towards achieving strategic goals and objectives.

Therefore, this budgeting and planning systems database is a discipline-specific database that contains financial data and other relevant data used to determine a budget based on balancing revenue and expenditures. (Teton County, Wyoming, 2017) (Budget Narrative, 2017)

This SystemSystem is designed as a  centralized enterprise database system as it can only be used within the organization to track budget expenditures. It is also a discipline-specific analytical database that focuses on managing financial data and business metrics used for tactical and strategic decision-making. The database stores semi-structured data since it contains both structured and unstructured data that has been processed to some extent (Teton County, Wyoming, 2017).

 Structure

The budgeting and planning system will first require storing important organization information incorporated with the incorporation accounting system to aid in the strategic financial plan. The information will include:

  1. Department:

This is the initial stage of the system design structure that seeks to employ a negotiated budgeting approach through the involvement of departments in the budgeting process. This is an independent table that contains the organization’s department information. It displays the departmental name, the departmental number that uniquely identifies the department, and the department’s number of staff. This information will be incorporated relationally in determine the budgetary allocations while determining the budget plan.

  1. Departmental budget:

resource allocation is a fundamental issue in any organization to curb the resources limitation effect (Yeni Kuntari, Anis Chariri, Tri Jatmiko Wahyu Prabowo, 2019). Therefore, the departments will be responsible for capital expenditure to finance departmental projects and investment opportunities. The SystemSystem will require the departmental information, including the department number, which is a reference to the department table. Projects linked to the department and the proposed budget help run the departmental activities in a quarterly system. Such information is necessary for strategic planning concerning revenue availability.

  1. Revenue source and expenditure:

Analyzing a company’s performance in terms of revenue is crucial, and a strong organization’s task is to have a regime that generates revenue. (Odubo Ebifuro,Eniye Mienye,, 2016)

In order to provide accurate financial statements, revenue and expenditure must be monitored and linked with the organization’s accounting system. Revenue source is the amount of money generated from normal business operations. The data stored here Highlights revenue sources that include service, project, and recurring revenue sources.

  1. Expense:

An expense type of expenditure flows through the income statement and is deducted from revenue to arrive at net income. Due to the accrual principle in accounting, expenses are recognized when they are incurred, not necessarily when they are paid for. This table will be useful in tracking the expenditure of funds in the organization by storing the operating costs, fixed costs, variable and non-operating costs—all of which are directly related to the budget plan through profit estimation and appropriate budget allocation. The references in this table will directly link the department and budget allocation tables.

  1. Budget Allocations :

The budgeting process creates plans to make expenses or allocate resources. It can be made for an individual, project, business, government, or other organization. This table is therefore used in the structure of the budget allocation as plans can be generated from the above tables. This displays budget allocation to the organization’s department based on the proposal submitted, revenue, and expense estimation.

 

Functions and use

According to (Carlos Coronel, Steven Morris, and Peter Rob, 2015), as the SystemSystem is a process and policy, usually assisted by PostgreSQL software, it allows an enterprise or institution to consolidate its financial information, maintain compliance with accounting rules and laws, and hence produce detailed financial reports.

The SystemSystem is used by application accountants, administrators, financial analysts, and developers.

  1. Compel Planning

Almost all company operations need some level of planning to make the most efficient and effective use of limited resources. The budgeting and planning system is a formal planning framework that establishes precise deadlines for achieving departmental goals and contributes to the organization’s overall goals. A budget includes projected performance and current managerial objectives, which aid in issue solving and future analysis. Budgeting impacts strategies, which are likely to alter when variables or organizational goals change, such as shifting product lines. Consequently, less time is spent dealing with unforeseen issues, and more time is spent on proactive initiatives. (Huanmei Wu, Ashish ambavane, 2017)

  1. Improve Coordination

Coordination is a management role whereby all output elements and departmental operations are balanced and linked to meet the organization’s objectives. A production manager must guarantee that sufficient output is available to satisfy the sales department’s expected demand. As a result, the finance manager must guarantee sufficient cash to fulfill increased output needs. Budgeting and planning database systems compel these many function managers to discuss their plans and coordinate their operations.

  • Improve Communication

All employees must be informed of the organization’s goals, policies, programs, and results to function effectively. They should have a clear knowledge of the goals and objectives and their role in achieving them. This is feasible because they are involved in the budgeting process. Budgeting and planning systems tell each management what the other managers have agreed to do. They also tell managers about the resources available to meet goals and objectives.

  1. Provide a basis of Control and performance evaluation

When a budget is created, departments examine their future goals and offer projections based on their needs. Budgets serve as the foundation for evaluating an organization’s performance since they reflect realistic estimations of acceptable and desired results. Most managers want to understand what is required of them to keep track of their progress. Measuring performance levels against a budgeted goal rather than outcomes from the previous year, when conditions may have shifted, is more reliable, trustworthy, and reasonable. Budgeted performance is typically thought to be a better measure for assessing actual results than prior performance.

 Relations comprising the SystemSystem

This budgeting and planning system is a complete representation of a relational database model. Every row in the table represents a collection of related data values which denote the real-world entity. The relations comprising this SystemSystem are the relational integrity constraints that dictate the conditions for a valid relation in the database system. The relational integrity constraints available in the database are as follows;

  1. Domain constraints

Domains constraints provide a logical definition and a data-type format defined for an attribute.

This SystemSystem comprises of the domain’s constraints that define the value of each attribute, such as ;

Specified data types, for example, numbers, integers, Booleans, and variable-length strings, are defined for respective attributes.

  1. Key constraints

This is an attribute that uniquely identifies a tuple in a relation. The value has to be unique. In this SystemSystem, Key constraint is used in every table by specifying them, for example, department number in the department table.

  • Referential integrity constraints

This is based on the concept of foreign keys, which are referred to in other relationships. An example in this SystemSystem involves the department number key referred to from the budget allocation table.

The table below displays all the relations that the budgeting and planning system comprises;

Table of Contents

References

Budget Narrative. (2017). The fiscal Year 2016-2017 Teton County, Wyoming, 1-24.

Carlos Coronel, Steven Morris, and Peter Rob. (2015). Database Management Systems. Design, Implementation, and Management. Boston: Joe Sabatino.

Huanmei Wu, Ashish ambavane. (2017). A Coherent Healthcare System with RDBMS, NoSQL, and GIS Databases.

Odubo Ebifuro,Eniye Mienye,. (2016). Application of GIS in Improving Tax Revenue from the informal sector in Bayelsa State Nigeria.

Teton County, Wyoming. ( 2017). Budget Overview. The fiscal Year 2016-2017 Budget Narrative, 1-24.

Yeni Kuntari,Anis Chariri, Tri Jatmiko Wahyu Prabowo. (2019). Capital Expenditure of Local Governments. Academy of Accounting and Financial Studies Journal, 2-12.

 

 

 

 

 

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