Budget preparation

Capital budget includes capital expenditure and financing activities. Capital expenditure refers to the purchase of fixed assets and project investment with important value, such as the purchase of office furniture, computer electronic equipment and other expenditure items with a service life of more than one year, the construction of factory buildings, office buildings or commercial real estate, and foreign investment. Fund-raising activities refer to the cash flow that a company raises funds through creditor's rights, equity investment or issuing other products to meet its expenditure needs.

1. Necessary investment, as the name implies, is it necessary;

2. Alternative investment, that is, replacing the old with the new;

3. Expand investment, such as multi-store or multi-production line operation.

After determining the investment type, it is necessary to predict the variables of various investments and evaluate whether to invest through key variables. The following variables are mainly analyzed in the following ways:

1. Accounting payback period method (available when building profitable places);

Payback period refers to the time required for the cash inflow caused by investment to accumulate to equal the investment amount.

The calculation method is as follows:

When the net cash inflow in the current year is equal: investment payback period = original investment amount/annual net cash flow.

The net cash inflow changes year by year, or the original investment is invested in several years: suppose that m is the year before the original investment is recovered, and the investment recovery period =M+ unrecovered amount in the m-th year /M+65438+ net cash flow in the 0-th year.

2. Accounting rate of return method;

3. Net present value method;

4. Internal rate of return method (widely used by real estate enterprises);

5. Get the index.

1. Cash flow;

2. Discount rate;

3. Project cycle.

Finally, according to the evaluation results, choose the most suitable scheme for the enterprise, and report it to the audit before implementation. After the completion of the project, feedback the process and re-evaluate it, so as to avoid the pit reasonably for the next investment.