Computerized Budgeting
Computerized Budgeting
MGMT 360
Budgeting has been a major part of forecasting how companies spend their money throughout the fiscal year. In most companies, the words “it’s budget time”, strike fear in the hearts of employees. Financial officers and management accountants brace themselves for reconciling reams of spreadsheets that may reveal wildly different data depending on order and configuration. Non finance employees in various divisions scurry to understand their role in the budgeting process and struggled to pull together the facts and figures they hoped would appear attractive to management. Traditional budgeting was carried out on a pad and pen, archived in countless journals and ledgers and often stored in boxes and crates. Retrieval was a difficult task. Today, computerized budgeting (E-Budgeting) solutions have streamlined and transformed the budgeting process at all levels of an organization. This research will show the factors that contribute to every day individuals to government; that are now using E-budgeting for accurate budget and bookkeeping strategies. Before the days of calculators, computers, and the internet, companies had to budget their finances the old fashioned way. Many accountants had to have countless ledgers, journals, and books filled with the next fiscal year’s projections. At the end of the year they had to go back and reconcile all figures and see what they could do to make the next year even better. This was a very demanding task, since all they had to use was scratch paper, abacuses, and lots of ink. Since technology was not yet able to provide ease to these tasks, the actual task of budgeting and bookkeeping was costly and largely ineffective. Traditional budgeting had many problems. Many employees of companies were unaware about what the company needed in order to make the budget work. With many employees not knowing what information was important and what wasn’t, many budgets and forecast tools were
MGMT 360
Budgeting has been a major part of forecasting how companies spend their money throughout the fiscal year. In most companies, the words “it’s budget time”, strike fear in the hearts of employees. Financial officers and management accountants brace themselves for reconciling reams of spreadsheets that may reveal wildly different data depending on order and configuration. Non finance employees in various divisions scurry to understand their role in the budgeting process and struggled to pull together the facts and figures they hoped would appear attractive to management. Traditional budgeting was carried out on a pad and pen, archived in countless journals and ledgers and often stored in boxes and crates. Retrieval was a difficult task. Today, computerized budgeting (E-Budgeting) solutions have streamlined and transformed the budgeting process at all levels of an organization. This research will show the factors that contribute to every day individuals to government; that are now using E-budgeting for accurate budget and bookkeeping strategies. Before the days of calculators, computers, and the internet, companies had to budget their finances the old fashioned way. Many accountants had to have countless ledgers, journals, and books filled with the next fiscal year’s projections. At the end of the year they had to go back and reconcile all figures and see what they could do to make the next year even better. This was a very demanding task, since all they had to use was scratch paper, abacuses, and lots of ink. Since technology was not yet able to provide ease to these tasks, the actual task of budgeting and bookkeeping was costly and largely ineffective. Traditional budgeting had many problems. Many employees of companies were unaware about what the company needed in order to make the budget work. With many employees not knowing what information was important and what wasn’t, many budgets and forecast tools were
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