Preparation of the budgeting tool and different analyses. Commissioning company: Lumoa.me Oy
Nguyen Thi Thanh, Nhan (2018)
Nguyen Thi Thanh, Nhan
Haaga-Helia ammattikorkeakoulu
2018
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201803283885
https://urn.fi/URN:NBN:fi:amk-201803283885
Tiivistelmä
The main topic of this bachelor’s thesis is to design a master budget for 2018-2024 and
prepare different analyses for Lumoa.me Oy, which is a Finnish computer software start-up
established in 2016. The company provides a software-as-a-service (SaaS) online platform
to collect, process and analyse customer feedback and turn it into actionable insights in a
fast and easy manner. The final product is expected to be an Excel budgeting tool together
with different financial analyses.
This is a product-oriented thesis, which includes two parts: a theory section and an empirical
section. The whole structure is divided into five separate project tasks. The first section
consists of three tasks, which establish the relationship of theories to budget project
implementation. The second section illustrates how the author designed the tool and
prepared selected analyses in tasks four and five, respectively. In detail, task one and task
two discuss the role of budgeting in management and the budgeting process. Task three
describes the business structure of a SaaS company and its characteristics generally. After
that, there is a brief introduction of selected analyses and reasons why they are needed for
the commissioning company. The process of creating a master budget for the
commissioning company is addressed carefully in task four. Next, project task five focuses
on developing different analyses such as breakeven revenue, customer-revenue analysis,
cash flow analysis, scenario analysis and finally variance analysis for controlling purposes.
Lastly, task six is aimed at evaluating the project.
The main software used to design the budgets and prepare different analyses is Microsoft
Excel. As a result, the final product comprises a master budget and a set of analyses. In the
master budget, an operating budget and a financial budget are budgeted monthly in the first
two years from 2018 to 2019. Following that, there is a simple forecasting of the next five
years from 2019 to 2024. The operating budget is made up of a sales budget, a sales &
administration (S&A) expense budget, and an income statement budget, while a cash flow
budget is considered as a financial budget. In addition, for every budget, there is a summary
table to capture the proportion of each element in that budget annualized in each year.
Overall, the thesis was delivered on time and met the commissioning company’s
expectations. The CEO was also satisfied with the end results and found the master budget
very helpful in her daily work.
prepare different analyses for Lumoa.me Oy, which is a Finnish computer software start-up
established in 2016. The company provides a software-as-a-service (SaaS) online platform
to collect, process and analyse customer feedback and turn it into actionable insights in a
fast and easy manner. The final product is expected to be an Excel budgeting tool together
with different financial analyses.
This is a product-oriented thesis, which includes two parts: a theory section and an empirical
section. The whole structure is divided into five separate project tasks. The first section
consists of three tasks, which establish the relationship of theories to budget project
implementation. The second section illustrates how the author designed the tool and
prepared selected analyses in tasks four and five, respectively. In detail, task one and task
two discuss the role of budgeting in management and the budgeting process. Task three
describes the business structure of a SaaS company and its characteristics generally. After
that, there is a brief introduction of selected analyses and reasons why they are needed for
the commissioning company. The process of creating a master budget for the
commissioning company is addressed carefully in task four. Next, project task five focuses
on developing different analyses such as breakeven revenue, customer-revenue analysis,
cash flow analysis, scenario analysis and finally variance analysis for controlling purposes.
Lastly, task six is aimed at evaluating the project.
The main software used to design the budgets and prepare different analyses is Microsoft
Excel. As a result, the final product comprises a master budget and a set of analyses. In the
master budget, an operating budget and a financial budget are budgeted monthly in the first
two years from 2018 to 2019. Following that, there is a simple forecasting of the next five
years from 2019 to 2024. The operating budget is made up of a sales budget, a sales &
administration (S&A) expense budget, and an income statement budget, while a cash flow
budget is considered as a financial budget. In addition, for every budget, there is a summary
table to capture the proportion of each element in that budget annualized in each year.
Overall, the thesis was delivered on time and met the commissioning company’s
expectations. The CEO was also satisfied with the end results and found the master budget
very helpful in her daily work.