Suhaneya Vasanthakumaran

Budget Simulation
Due: In class

Definition of a budget:

A budget is a financial document that contains an itemized summary of estimated or

intended expenditures for a given period of time. In essence, it's a plan for allocating
financial resources.

Upon completion of this assignment, you will be able to:

Complete a budget.
Add, subtract, multiply and divide decimals.

Part 1. Complete a business budget.

Instructions: Take a moment to think about the costs of running an office. Complete a
business budget base on the scenario below.

Scenario:
Title: Office Administrator.

Company: Ladhani & Penn Law Office

Task: Your boss, Anne Penn, has asked you to create a monthly budget for the law
office. You have a total budget of $17,000. Below are some details that will help you
create the budget. Complete the Planned Expenses column of the budget so it totals
$17,000.

Rent $2350.00
There are five lawyers and two office administrators at the firm that require
parking spaces. Each parking spot costs $32.00 a month.
Utilities are included in the cost of rent.
Insurance costs $356.00 a month
Each fax and copy costs $0.03 per page, the office generally goes through 6,000
per month
Advertising is a priority of the law firm
Phone/Internet there are seven phones/extensions plus the fax line to pay plus
internet connection which comes to $34.17 per line
Office cleaning service costs $400 a month

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Office supplies comes to $550 per month

Shredding service is $165 per month
Mileage costs are $0.45 per kilometer per month and mileage is generally 875
kilometers per month
Mailing costs are $470 per month

Create a one paragraph statement explaining your budgeting choices. The purpose of
this is to explain to your boss why you distributed the money the way you did. Use the
internet to find some prices for salaries for the two office administrators, brochures,
business cards, website and advertising to support your planned expenses.

Include citing for the sites you used to determine the costs for the two salaries,
brochures, business cards, website and advertising (your choice for magazine,
newspaper, television or radio ads).

I distributed the money by finding the most efficient way to the office budget. First, with
the administrative assistant salaries, because there is two in the office and both are
doing equal work in the office, it is only fair that they only get paid equal salary.
According to the median range of legal administrative assistant salaries is $48,996
annually, so that would $4,083 monthly for an individual. For both of the assistants it
then came to $ 8,166 monthly. For advertising, it is important for the firm to be noticed,
so in order for that to happen people need to know about the services that we offer. I
had visited vista prints website, which will offer many services in marketing for our firm.
We can get brochures, magnetic business cards, personalized folders for our clients
information, flyers, calendar magnetic. In addition, they do offer social media advertising
for $10.00 per month for Facebook. For our business website, staples offers a monthly
payment setting up the website as we wish, also the law firm personal email addresses
and personalized ones for each individual. I know that the lawyer usually at least drink
two cups a coffee a day. Therefore, it would be easier if we bought a coffee maker and
coffee, where people would not need to leave the office to grab coffee. I also added a
budget amount of 500, so that would could use for any refreshments for employees or
clients and meals that we might get during work period time. This leaves with a monthly
budget of 16,611.77, which leaves us with a little bit of extra money for any other
expenses that might come up.

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Pro Forma Business Budget

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Planned Actual
Expense Category Expense Expense Difference
Building Rent / Lease $2350
Equipment Rent / Lease
Product / Material
Coffee $187.94
Food $ 500
Marketing Expenses
Brochure $149.99
Website $194.99
Business Cards $245
Advertising $1839.91
Other
Administrative Expenses
Fax/Copies $180
Postage $470
Office Supplies $ 550
Other
Sales Expenses
Mileage $393.75
Parking $224
Other
Operating Expenses
Utilities/ Internet $239.19
Office Cleaning Service $400
Insurance $ 356
Shredding Services $165
Salaries $ 8166
Miscellaneous
Total Expenses $16,611.77

Section Two: You are preparing for a year end annual general meeting for a company.
You are asked to create a financial report for the year. Note: See the handout for
formatting and use Word with L-tabs and decimal tabs for correct placement; you set
them once at the beginning of the document, then use the Tab key to tab to the tab
location. .

References

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http://www.payscale.com/research/CA/Job=Legal_Administrative_Assistant/Salary/edc2
b82b/Toronto-ON

https://www.staplescopyandprint.ca/PrintOnlineInfo/BusinessCardInfo.aspx

https://www.staplescopyandprint.ca/PrintOnlineInfo/DoItForMe.aspx

http://www.vistaprint.ca/

https://www.walmart.ca/en/ip/keurig-black-k425-plus-brewer/6000196128523

https://www.walmart.ca/en/ip/keurig-all-time-favourite-coffees-variety-
box/6000195344763