Role of Budgeting in Planning, Control, and Resource Allocation Process in UAE Companies Financial Planning


Before understanding the key concepts of budgeting, it is important to understand the meaning of budget. A budget is used to make a documentation of the translation of plans into money. So, the amount of money that needs to be spent in the planned strategies of the company would lie under the budget of that company. These planned strategies include the expenditure that a company incurs and also the income that the company predicts to make. So, in other words, a budget helps one to make an estimation of the amount of money that would be required for the company to handle the projects undertaken by it. It must also be understood that a budget is not made permanently. There are conditions under which a company can make changes in the budget and go as per as the needs of the market. As for example, if a company sees that the use of computers is not as had been planned in the budgeting; it would either replace it with something or not make any investment at all in the field. This is where the utility of controlling comes into the picture. Other than this a budget is also significant from other perspectives. If one talks about the resource allocation, budget has an equally important role to play in it. The reason for the same is that let’s say that a company has budgeted that it can afford a certain amount of power supply for a certain project that is conducted in a village. Under the conditions, the amount of human resource that would be required to carry out the project can be determined from the budget itself. Normally a budget is of three types. They have been mentioned as follows:

Survival Budget: This form of budgeting is important in the boundary conditions. It estimates the minimum resources so as to complete a particular project. So, if a company has a look at the survival project, there is one obvious analysis that can be done. This is that under the most optimistic of the situations, the resources allocated would be sufficient. There would be very little margin of error under the conditions.

Guaranteed Budget: This budget is formulated when there is a guarantee of a particular amount of income at the time of formulation of budget. So, when a budget is made from this perspective, this income is taken into consideration. If somehow, the debtors are not able to provide the income that the company used as guarantee before making the budget, it would have to switch over to the survival budget formation.

Optimal Budget: The third form of budget is the optimal budget. This budget is used under the conditions when there is extra money in the company accounts or else the company feels that it could raise extra money from the market. So, if the position of the company is good then this form of budgeting can be applied. As for example if we consider a very famous company in the infrastructure sector, Emaar, we would find that the company has the ability to raise a lot of extra capital from the market. So, Emaar can hope to use it in utilizing the money to plan a few more interesting projects like it had made the longest mall in the world and the tallest tower in the world. Both these projects were outcomes of an optimal budget made by the company.

Budgeting Responsibilities

Owing to the circumstances under which a budget is fruitful, the organizations should be highly selective in handing over the responsibilities of making the budget. There are a few pre-requisites of making a budget. They are as follows:

The concerned employee should have a clear understanding of the company’s values, strategies, and plans that lie in the near future.

The employees must know the importance of cost-efficiency and cost-effectiveness.

Also, the concerned employee must have knowledge about the resources that would be used to generate and raise funds.

The above pre-requisites are essential for the company if they have the motive of using budgeting in the planning, controlling and resource allocation purposes.

So, it is generally recommended that a company has a budgeting team that has an optimal size so as to prevent any discrepancy with the formation of the budget. Under all situations where the concerned members of the finance department have difficulties in planning the budget, they would have to consult the board of members for the same. For a situation like this to arise, the planning in the company must certainly have been wrong. So, we can see that the new planning would depend solely on the fact that budget allows the same to happen. Under all other conditions, the estimated plan would have to change. (Budgeting, 2010)

Role of Budgeting in Planning

Here we are taking the telecommunication giant, DU into account to understand the role played by budgeting in the planning process. It was only about a couple of years ago that the company introduced its new plan. This new plan was about introducing the pay-by-the second plan amongst the services of the company. This was done as per as the optimal budget plan of the company. DU had formulated a budget where it got the option of introducing a new facility with the extra money that it hand in hand. As the company analysis shows that DU was climbing the ladders of success even then, so this was certainly a major step in the making. Moreover, the funds that had been allocated in the budget were enough for the fact that the company could start this service any time it wanted. So, it chose the time when the nearest rival company Etisalat had screwed up its plans after introducing the Blackberry services. As an optimal budget is that which allows the time for starting a new investment, this was just the time and DU made the most of the opportunity. Today this plan is among the most revenue-fetching plans that the company had ever introduced in its services. So, budget played an extremely important role in the planning of this success of the firm. Had the company planned to use the extra money as a surplus or retained or reserve, it would never have been able to introduce this service. So, one can see the importance of making the right budget at the right time can help in planning for great successes in a company. There are other examples also where one can see the planning being aided by preparation of budget. The tourism department of Abu Dhabi was guaranteed of the fact that it would have a considerable amount of income from the flourishing tourism in the country due to the onset of some of the most peculiar activities in the country. Under the situation, the department used the guaranteed budget to enhance the cultural activities of the country. A number of museums have been renovated because of a planned budgeting under the guaranteed budget plan. The department had planned that with the money they would have from the already existing resources in tourism, it would evoke a cultural feeling in the country and its natives, It has been able to do it successfully as per as the statistics of the museums of the region are concerned. So, once again we see that budgeting has helped in planning of such an important landmark in the country.

As in general one can say that budgeting is about aiding a company to make plans for the future. It is that process where a company can be assured of the fact that it would have enough money so as to carry out the requisite projects. We are all acquainted with the fact that the world is about competition as of today. Every company needs to plan new projects so as to show its core competency. Under the conditions, no company can automatically start investing on its research and development. It has to come through a substantial degree of planning which could only be possible after the budget of the company allows it to do so. In all other situations it would finally have to terminate the services with an excess of demand or supply.

There are also other instances where a company can use the principles of budgeting in order to carry out its planning. This can be seen in the case of training. Every planning of training has to be supported by budget. This is one of the foremost criteria of training. There are a number of instances in the country where the Government is implementing programs like Emiritzation. If the budget of the company does not support such plans they would certainly not be executed. The loss can be huge under the conditions. The first case would be a monetary loss as an incomplete training would actually be of no used as it would be insufficient to fulfill the company’s criteria. If some small companies do place employees with an incomplete bit of training, it would make the company even smaller!

So, we can see how budgeting governs this chain of planning which of not executed in a suitable manner could bring about adverse results. (The Importance of Budgeting, 2010)

Role of Budgeting in Controlling

As in the case of planning, budgeting also has a special role to play in controlling of an organization. We have seen that a plan would simply lay the conditions of taking on a particular activity. What follows is its controlling in the implementation phase. Let’s say that a company wishes to promote its products or services in the trade fare of Dubai. This is one of the places where controlling comes into play with respect to budgeting. Dubai Trade Fare is one of those occasions when a number of companies use the best of means to promote their products. With an adequate amount of control, the companies would never be able to compete in the pool of so many. So, a budgeting has to be done to choose the HR and marketing department which would be responsible to control the scenario.

Without a proper budgeting in this respect, the company would make inefficient decisions and after a while, there would be no control over the promotional measures of the company.

There are also a number of chances where a company goes with leisure expenses. It does increase the value of the company for a particular period of time but after a while there has to be an end to it. Now, with a planned budget under the conditions, the companies would be able to restrict themselves from over-spending as the budget would not suit their expenditure. This requires the company to make a survival budget. As we can see a survival budget would certainly take care of the budgeting requirements of the company. If the employees are aware of the fact that they would not be able to complete their respective projects with the type of expenditure they are doing, they would certainly shift to other economic reasons. This way a company can also control the activities of the employees. Once a planned budget is produced the whereabouts of the employees can also be checked as they would be on a hire. The amount of time given to them in the budget would be fixed. If they are unable to finish their respective works in this stipulated time they would see the effect on their salaries or wages. So, this way, the company’s activities, employees, time and money can all be under control with the introduction of budget in the company’s financial plan. The company would certainly become more efficient if it works in a controlled manner. So, this would be for the mutual benefit of both the employees and the company as well. (Controlling a Budget, 2010)

Role of Budgeting in Resource Allocation

A company’s success is highly dependent on the resource allocation. This has to be done optimally so as to complete a certain project. The law of economics suggests that a company has the least resources and has to make the most of it. So, only an appropriate resource allocation would help this happen. This would be in terms of human resource, raw materials, equipments, money, time and all other attributes that take for making a project successful. Here again, the budgeting of the company plays an important role to play. The reason for the same is that in all the sectors that have been talked about here, only a planned budget could decide the maximum a company can afford. Let’s say that ADNOC has the plan of staring a new subsidiary. Under the conditions, it would have to make a budget where the company could allocate the amount of human resources in order to make this happen. Not only this, there are a series of activities that would have to be done in the process. Much of the time, there would be two processes going on and at times even one. So, a planned budget would estimate the amount of money that the company can afford throughout the process. Based on this, the processes would have to be allocated in a manner where the company can make the best use of the human resource available. If ADNOC has 200,000 AED for the purpose, and there are 10 slots, rather than allocating 20,000 AED per slot, the company would have to see the priorities of each slot. If a particular slot requires double the number of processes than the others, the resources would have to be allocated accordingly for the same. Now this can only be possible with an appropriate amount of budgeting. If the budget of the company does not allow double resource allocation for a particular slot because of other activities, then the company would have to come up with other alternatives. Had there been an inability of a budget, the company would allocate double resources and finally land up with none available for a process that has little requirement. So, we can see that even the process of resource allocation requires budgeting to a large degree.

Talking about the company Emaar, as per as the organizational size of the company, there has to be a proper budgeting done. The reason for the same is that every department requires an adequate amount of human resource and funds. If the company’s budget for a particular project is 200 million AED, the company would also have this budget divided into different departments. Every department would have to use only the allocated funds to support its human resource and all other requisites prior to conducting the project. If the construction department spends so much that the company is not able to use any funds for its advertisement, in this world of competition, even a company like Emaar would have to bow down to others in the league. There are so many options that people have for residents that promotion under forced conditions could change every profitability ratio of Emaar. So, here again we see the hierarchy that could be affected because of the inappropriate use of resources that would result from the non-availability of a budget that could suit the purpose. (The Basic Budgeting Problem, 2010)


So, one can see that a budgeting process has a number of utilities in the projects of a company. This could be from the perspective of planning, controlling or resource allocation. Every company has the desire to be at the top. Finance has a special role to play in the same. Te steps of laying down an appropriate budget are as follows:

Firstly, the concerned person should lay down all the places of investment with respect to a particular project.

Next, make an estimation of the unit cost of every product that would be manufactured in the process.

Next, analyze the resources that would be sufficient to provide for the unit costs found.

Next make a proper budget format so that it is clear to all the departments and they the amount of allocation for them in all the respects.

It is also advisable to make notes so as to be able to explain the budget better.

Next, it is required to take a feedback on the budget so as to see whether it is applicable to all the departments or not. If not, then it would have to be re-planned.

Finally, make the final documentation so as to be able to help in planning, controlling and resource allocation as has been suggested earlier.

With all the above processes followed, a company can afford to perform all the financial activities in its respective projects. It must be remembered that only a systematic design of budget as has been concluded could be used for the mentioned cause.

financial planning

Cold Calling in Commercial Real Estate Money

Commercial real estate is an easier property market segment to work in because it is built around logic and not emotion. Most of the prospecting calls and meetings you make are with people that are ‘business savvy’, and know real needs and solutions when they see them.

The emotion seen with owners in residential property is not a problem in commercial real estate however you do need to know what you are talking about given that commercial is a complex investment property type and the property owners are usually very aware of what is going on. For this reason, and to all the newcomers to the industry, you must know your product very well and be able to talk to it from many angles. Without this many property owners will discount your relevance to them.

Get Your Head and Thinking Straight

B2B cold calling is an essential part of daily activities in commercial real estate however it frequently fails because most salespeople sound like they are making a cold call. Here are two essential rules of cold calling success in commercial real estate:

  • It is the ‘how you do it’ that really matters to the call conversions to appointments.
  • What you ‘think about’ in doing the regular call process also is a critical part of the method.

Change the Name – and you will change the results you get

‘Cold calling’ implies something less than ‘warm’ and pleasant. To solve this problem, I prefer to think of it as ‘Call Direct’. It is a more positive mental image than anything that is ‘cold’! To be successful in making these calls, you must sell the process to yourself and believe that you are good at it.

When calling a prospect in commercial real estate, most salespeople are trying to ‘get’ something from someone. They are trying to ‘get’ an appointment or ‘get’ a listing. The fact of the call is that no one wants to ‘give’ something to someone they do not know, like, trust and respect. This is why most commercial salespeople fail miserably at this process.

But ‘getting’ is not the purpose of ‘call direct’. ‘Call direct’ is a discarding or disqualifying process. It is just like panning for gold or digging for diamonds. You have to turn over a lot of dirt before you find the gems. If you do not understand or accept this principle, then you will become frustrated and think that your efforts are not working. You will give in far too easily (this is what most people do and they therefore struggle to achieve great levels of listings and transactions).

Your objective in ‘call direct’ is to disqualify as many people as possible, as quickly as possible. That eliminates the time and money wasted in sending literature or seeing people who will never use your services, and it stops the fruitless follow-up calls that lead nowhere but to frustration.

You only have 30-45 seconds to deliver a specific and compelling reason for the person on the other end of the telephone to ‘want’ to continue the conversation. Skip the small talk and get right to the point. Be a ‘top performer’ in the call process.

You will be most effective when your 30-45 seconds causes the prospect to identify a real estate related problem in their mind that you can help them fix. People will talk to you if you shed light on a problem they need to have fixed; only for that reason.

Problems in commercial real estate typically focus around loss of rent, tenant problems, wasted time, inefficiencies in returns, competition pressures, disposal needs, functioning of the property, age of the asset, or repositioning etc.

If the prospect (not you) identifies something that is having negative ramifications on their property performance (a problem) AND they are serious about getting rid of that problem, then you ‘may’ have a possible reason to continue.

If there is a possible fit between you, then you can set an appointment to explore the possibilities of helping that prospect in some way get rid of that problem. There is no point in setting up an appointment simply because the other person lets you do so. You must determine that they are relevant to you, they are the decision makers, and that they have an interest in what you are talking about.

Protect your time by qualifying the correct people over the telephone before you make that appointment. There are a lot of prospects out there who think that they are the ‘decision maker’, and in reality are nowhere near those that are. Think like a ‘top performer’ and protect your time; it is the most important resource that you have.

What to Say?

Have you ever been stuck to know what to say when you call prospects in commercial real estate? If you are like many people you will use a script that is fairly typical and ‘all about you’. The process has poor results and ends in low call conversions to appointments. You have to change the call process significantly so that it has some relevance to ‘them’. When you do this your call conversions will rise.

The object of the call is only to get appointments with relevant people. That is the only thing you should be ‘selling’ in the cold call. The call should be used to identify if there is a genuine need on the part of the person that you have called, and then only to set up a meeting.

You are a skillful and relevant commercial real estate consultant in your market, and on that basis you are calling people to see if they have a property need and if you can help them with that.

Remember this fact and make it the foundation of your calls. There is no purpose in setting up meetings with people that really do not need you, or have no ability to make a decision on commercial real estate matters. This market today is not something in which you should waste time. Your time is money and money is precious.

The Call Structure?

The ‘call direct’ structure is so important and must be centred on the prospects situation and not yours. Try this as a basic approach.

  • Tell them your name and company
  • Ask permission to talk to them for 60 seconds
  • Tell them that they can end the conversation if they want to after that point.
  • Get right to the point by focusing on their needs (not yours)
  • Help them identify their business problems by offering a ‘short menu’
  • Never try to convince a prospect to take your services or have a meeting without qualification; instead let them convince you it is worth your time and effort to meet with them.
  • Honour your agreement and let them off the hook if they do not want to engage

Here’s an example of ‘call direct’ for Commercial Real Estate Sales or Leasing:

  • Brian, this is John Brown from Atlas Commercial Real Estate. The nature of the call is property related.
  • Can I take 60 seconds of your time to chat and then you can tell me if we should continue speaking?
  • Thanks for that…. I will be brief.
  • I am just calling to see if commercial property is an issue for you in this market, particularly with sales or leasing needs.
  • ‘Results are on the radar’ for many local property owners at the moment, and we have some ways of helping with that.
  • Is that an issue for you?
  • That’s not a problem Brian, as I said I just want to see if we are a clear fit or a match and can help you in any way.
  • Many property owners are concerned about their returns or occupancy situation in the face of more competition or market pressure. They are looking for ways to increase reliability and consistency of the property’s performance.
  • Its good insurance in this market.
  • Brian, that being said, could these be things be issues for you in the future?….. Or is everything running 100% smoothly?’

In less than 60 seconds you will know if you have someone on the line that is relevant to you. If they do not have any commercial real estate problems that you can fix, then it’s over (for now). Remember, they may not have a property problem today, but they may have one in the future. Put them in the database for another call if you think it is relevant.

If you make ‘call direct’ a scheduled business event at the same time in your daily diary, and you action it with consistency, you will be amazed how much new business you will dig up. Understand also that ‘no’ is an ‘ok’ word that, when given by the prospect, simply needs qualification in case some future need is still hidden in the discussion. You will get many ‘no thanks’ comments as part of the call process. Do not try and push or convert every ‘no thanks’ to an agreement for a meeting, unless you really know that the prospect is truly relevant and that they will have a need in the future.

Make this call process part of your daily business model and continue it even when you become more successful. As you get more referral business from ‘happy’ clients you should still continue the call process as it is foundational to permanent and real success in all types of commercial real estate markets. The only other essential element to incorporate in this activity is a good database program where you can register leads and feedback. This will be your funnel for future business.

As simple as all this sounds it is surprising how many people do not do what I have explained here. They loose focus and quickly revert to old random habits and actions; they then get random results. Your success in the commercial real estate industry is centred around your choices and your ability to change your habits on the things that really matter to your business. Get the message? Happy hunting!

money changer

Why Do You Think Financial Statements Are Required to Be Prepared Using the Same Standards? Financial Planning

Financial statements are prepared in accordance with what? What governing bodies set accounting standards? Why do you think financial statements are required to be prepared using the same standards?

Financial statements are considered to be means of communication as it communicates the financial performance of company to its stakeholders. It is also being used as basis for comparing its performance with its competitors, industry and to see its position in industry. Comparison can be made if all prepare financial statements by following some standard rules of preparation of financial statements. If uniformity is there then it will be easier for stakeholders to understand financial statements. These statements are used by a variety of internal and external users including stockholders, investors, creditors, regulators, employees and senior management.

These statements information needs depends upon the kinds of decisions the user want to make. The users are interested to know how firm is doing in terms of its profitability, its financial position and its overall capacity to meet obligations and expectations of stakeholders. In other words users of financial statements are interested in earning power of the company.

To be more precise Creditors like to see earning power which will show estimated future earnings of the company. If earnings are good it shows that the repayment capacity of the firm will be good. Based on such kind of analysis creditors will decide to supply merchandize on credit basis.

These statements are important for creditors since the accounting information showed in financial statement will help them to evaluate the risks of granting credit or lending money. If they come to conclusion that, risk is low then they will definitely provide credit and vice-versa.

The common rules or set of standards are called as Generally Accepted Accounting Standards (GAAP) which will indicate how These statements or reports need to be prepared. These standards work as a guidance for preparation and following methods of accounting to be followed by all.

Accounting process works on two basic assumptions. These assumptions are monetary unit assumption and the economic entity assumption. The first assumption i.e. monetary unit assumption indicates recording only monetary transactions of business whereas the second assumption says that economic entity can be any organization or unit of a society. This assumption gives emphasis on differentiation of owner and entity.

In U.S. these set of rules or standards are issued by Financial Accounting Standards Board (FASB). Countries outside U.S. use standards issued by International Accounting Standards Board (IASB).

Accounting Homework Help er Answered this diligently.

financial planning

Every Other Day Diet Review – The Honest Pros and Cons Money

If you are evaluating and considering the use of Jon Benson’s Every Other Day Diet (EODD) as your weight loss program, then you owe it to yourself to consider these pros and cons. Even though many programs work, not every diet plan fits every individual’s taste or preference. If the program you are following is one that you either don’t like or are having to fight to maintain it, it can sabotage your overall effort to lose weight. Finding a plan that has the right fit, then, becomes the most important aspect of achieving success.

This diet works by following a very simple concept: that you can eat whatever you want — even if its fattening and not viewed as being something one would eat on a diet — every other day just so long as you maintain the discipline of the rest of the diet. The plan allows you to feel as though you aren’t on a diet while, in fact, being on a diet. Just that little emotional push can mean the difference between success and failure.

In getting a handle on anything (like dieting and attempting to lose weight), any little aspect that produces a positive attitude about what one is endeavoring to accomplish can be a huge achievement in the greater effort to actually succeed at realizing the goal. Once a person begins to experience success with a program and begins to realize why that success is coming about, it acts as an encouragement to continue with the program. You become a believer, so to speak.

This is because the person has begun to internalize the causes for the success and realizes that doing anything other than what has brought success is only sabotaging their efforts. This in turn can create a fail-safe mechanism in the person’s thinking which helps to ensure that they stay on track with the program because they can see where it’s taking them: to the completion of their goal. And that’s enough incentive for anyone to decide to stay with a winning plan!

Let’s first take a look at the cons for the Every Other Day Diet.

1. You need to be dedicated to following the plan. Whenever you decide to make any kind of change in your life, you need to remain focused on making the change work. If not, you’re wasting your time. Period.

2. You need to be willing to do some form of exercise, preferably some sort of weight bearing program which will help transform fat into lean muscle. Yet, this need not take up a lot of your time. It just needs to be a regular part of your program.

3. You need to be reasonable in your assessment of how things are progressing while on the plan. This means not expecting to see big changes (losses in weight) quickly and becoming impatient. You didn’t get into “this shape” in a couple of weeks or months, so you can’t realistically expect to lose it all within that same time frame?

4. The EODD plan doesn’t come with a built-in exercise program to follow. It makes suggestions, but leaves the design of the exercise program up to you. You can purchase an exercise program that Jon sells in order to fulfill this deficiency (his 7 Minute Muscle product), but this is really not necessary. There are exercise regimens that are freely available on the Internet that will work with this program which you can take advantage of at no added cost.

Now let’s take a look at the pros (some of the benefits) of following the EODD.

1. It teaches you the how behind losing weight the right way. You learn how the body works in burning up excess calories and fat, and what you need to become aware of in order to maintain that synergistic effort throughout your lifetime while also maintaining your health and fitness.

2. It’s very simple to use. There’s no complicated or frustrating counting of calories. Just a straightforward program of diet information and recipes that you can start doing today!

3. You are allowed to eat your favorite foods, even if they aren’t diet worthy. This means you can have your pizza and burger days along side the disciplined meal plans.

4. You receive a full year of support for any questions you may have about executing the diet plan. Receiving support for any program, no matter what it is, can be a real game changer in terms of your success with implementing the program.

5. Included is a virtual trainer software which will show you how to perform exercises correctly.

All in all, the Every Other Day Diet plan is not only a reasonable plan for many people seeking to lose those extra pounds, it’s a simple and easy plan to follow. This plan also addresses follow-up aftercare by making it easy for the user to make the transition from the diet into an ongoing lifestyle change. When you can change the way you address food and health issues, you can keep the weight off for good!

money changer

How To Turn Your Useless Home PC Into IP Phone PBX? Money

When we are talking about setting up the IP phone PBX system in our home, the first thing that comes to our mind is where or how to begin. Here, we will discuss at an easy way to turn your home PC into a fully fledged IP phone PBX. Let us first understand what this technology really is.

Installation using the old method:

The old method of installing the asterisk was one of the most awful ways to install the IP phone. Using CLI (command line interface) based interface to do anything is no more a choice, and when we are talking about Linux, that becomes even more painful. This is the single biggest reason why people now think of installing asterisk in their homes nothing short of a nightmare. When this CLI based Linux installation was carried out, it took many dark twists and turns, at the end of the day. There were fundamentally, two teasing things. For a layman, the first one was remembering all those commands and executing them at the right time. Secondly, for installing Linux separately, you also needed to install asterisk, which was nothing short of climbing the Mount Everest.

GUI Based Asterisk:

Now, users do not have to wrestle with the text based command prompt. New packages have included everything in just one CD and you just don’t need to install different software packages in bits and pieces.

There is a GUI based Linux software which solves half the worries related to remembering all the Linux CLI commands. Now ordinary people like you and me can see as well as relate to what is happening on the screen. Secondly, asterisk’s new GUI based version further makes things easy for the users.

They can make all the changes in asterisk through graphic user interface instead of using the command line interface. There are many GUI based asterisk available and most of them are open source like AsteriskNow, Flash in a PBX, and many others.

All these changes have not only made the installation process a lot easier but also reduced the unnecessary headaches which ordinary people had to go through earlier.

We talked about a useless PC on which asterisk work. Anyhow, we will still have a look at the minimum requirements for the computer that can be used for this purpose.

– You need a PC that is x86 with Linux GUI based operating system installed on it.
– The PC should be a minimum Pentium III with 500 MHz of processor.
– There must be one PCI slot available.
– You must have Digium TDM-400P that supports 2 X FXO daughter cards and 2 X FXS daughter cards.
– Your PC must have a sound card installed and working in perfect condition.

Assuming that you already have Linux operating system installed on your PC, we will proceed with the Trixbox installation as this is one of the most common GUI based asterisk in use.

Installing asterisk on your PC using Trixbox

Once you reach the console, login using these details.

Username: root
Password: The one you provided at the time of installation

Once you have successfully been able to log into your system, your system will mention you the DHCP server received IP address. Now you need to give your system a permanent address which you can do by two ways, either through the GUI or by system-config-network.

Upon configuring the IP address you need to restart the service network.

You will need to use your web browser to continue doing the configuration task through the IP that you just assigned.

Now you will need to click on Switch next to User Mode for opening the Admin GUI. Login details provided below.

user: maint
pass: password

Select the Asterisk – PBXconfig from the GUI.

Go to tools – module admin. Here you can select from a list of modules given. Install the ones which you really think of benefit to you.

Now go to setup – extensions – generic sip device to add your first extension.

Now you can enter different phone extensions that you want to use. Many people prefer starting from 200.

What to do next?

Once you have successfully configured all the settings, now you need to have a phone to make and receive calls. But as in this case, you are using your PC. Make sure you have good quality VoIP headset pair with a mic. This will help you make and receive phone calls. Make sure you have enabled voicemail to get the extra benefits. Now you can virtually attach as many phone users as you want. Just make sure to correctly configure it in your GUI based asterisk and do not forget to assign an extension to each new phone user added. The extension would be unique which can only be assigned to one phone user.

Enjoy managing a big network of phones with secure OS like Linux run by asterisk. There does involve some hard work but at the end. You will not need to invest that much amount of money or effort.

To reduce the cost of the whole process and increase the joys, make sure that you have a reliable internet phone service like Vonage, Axvoice or Skype at the backend.

money changer