In simple words, an executive summary is actually a shorter and more brief version of anything related to business either it’s a proposal, annual report, budget allocation plans or even a resume of an applicant. The main theme behind preparing an executive summary is that it’s not possible for the superior decision makers of a company to go through each proposal or report thoroughly without knowing if they need to review it or not. This way when these high profile employees and CEOs of a company are provided with an executive summary of a report or proposal, they understand the basic idea of the original report and then verify if they need to read the original draft or not. The key purpose of this executive summary or shorter version of a long report is to provide the lengthy information in fewer words so that when the readers review it, they don’t need to spend hours to find out the conclusion and they can decide whether it’s useful or not without going through dozens of pages of the actual report.
Executive Summary of Annual Budget Planning:
There is no way a company will survive without money or budget that is needed for all the business related processes such as buying the raw material, purchasing the machinery, paying the employees and advertising the products in the market. This all takes a lot of money and if a company is not prepared for the upcoming year budget vise, it won’t survive that long. At the end of each year, companies arrange big corporate meetings to find the expenses of the previous year, looking which area consumed more money and which department won’t need that much budget plan. This way, they decide how much to allocate as the budget for the next year. The executive summary of annual budget planning is actually the shorter version of the long budget report which doesn’t require that much time of the directors but provides the entire idea more briefly.
Here is preview of a free sample Executive Summary Template of Annual Budget Planning created using MS Word,
General Guidelines to Create an Executive Summary of Annual Budget Planning:
- Estimated cost:
No matter what the budget is about and what kind of market it will target, it needs money to run and complete. At this stage, you need to explain the costs of a project or the expenses of a company for the upcoming year. This can be done simply by checking the expenses of the previous year, resources and upcoming projects in the next year. This way you can prepare your company for the delay that lake of money will cause if you don’t have enough budgets.
- Estimated income:
When a company spends on projects, employees and advertisement of its products, it surely expects profit in return of those expenses. If it’s not a non-profit organization, the key purpose of a business is to earn more profit. Some companies make so aggressive strategies and plans that they don’t even consider their customers and just want to make more profit but history has showed that only those companies survive that give importance to their clients and customers more than their own profit. But here the summary declares the estimated figure of income for the next year so that company can increase or decrease its expenses in order to achieve a target profit ratio.
- Adjusting budget:
At the start of every year, each business and company prepares their next year’s expenses and profit ratios but that’s not it. It’s not authenticated that there won’t be any changes in those strategies or figures but the budget and expense strategies of a company should have enough flexibility so that if there is a change necessary in between the next year, the company can bare it.