What Is Budgeting
Writing a 750 words brief essay integrating aspects of the module with at least three external source to support your position about whether you agree or disagree with the following statement: “Budgeting is a key component in management short and long term planning.”
Introduction In a company, budgeting and operational activities link together, and budgeting plays an important role in a company’s running. At the end of the year, senior director will start to plan the budget for the next year. A successful business must be having a detailed budget. In this article, we are going to talk about what is budgeting and how is it important.
What is budgeting
Budget is an important process of management, it is a process of planning and identifying the objects as well. Once we prepared a completely budget, we can use it to examine whether our overall plan be adapted closely. It is the plan that is for saving, spending and borrowing. Budget is very specific plan for firm can actually find out financial problem. Budgets help you define how much money you have and how to use it, and help you decide whether money that you have is enough achieve own financial goals. Thence, people said, “Budgeting is a key component in management short and long term planning.” It is the view that building a budget means you can know the company’s income and expenses clearly, and you will decide how much money you will cost in each programmer. The last but not the least, budgeting can help a company reduce financial risk.
Short-term financial planning Some budget allocation may be short-term which any items to be purchased and paid for the tear. Short-term budgeting can help you cover expense. The cash budget is one of the primary tools that are used in short-term financial planning in order to plan for cash flow. In this case of short-term budgets, they provided bugger details and information. A good cash budget allows the senior to see short-term financial needs and
Introduction In a company, budgeting and operational activities link together, and budgeting plays an important role in a company’s running. At the end of the year, senior director will start to plan the budget for the next year. A successful business must be having a detailed budget. In this article, we are going to talk about what is budgeting and how is it important.
What is budgeting
Budget is an important process of management, it is a process of planning and identifying the objects as well. Once we prepared a completely budget, we can use it to examine whether our overall plan be adapted closely. It is the plan that is for saving, spending and borrowing. Budget is very specific plan for firm can actually find out financial problem. Budgets help you define how much money you have and how to use it, and help you decide whether money that you have is enough achieve own financial goals. Thence, people said, “Budgeting is a key component in management short and long term planning.” It is the view that building a budget means you can know the company’s income and expenses clearly, and you will decide how much money you will cost in each programmer. The last but not the least, budgeting can help a company reduce financial risk.
Short-term financial planning Some budget allocation may be short-term which any items to be purchased and paid for the tear. Short-term budgeting can help you cover expense. The cash budget is one of the primary tools that are used in short-term financial planning in order to plan for cash flow. In this case of short-term budgets, they provided bugger details and information. A good cash budget allows the senior to see short-term financial needs and
References: Drucker, P. (1993). Innovation and Entrepreneurship. new york, USA: harper business. Hartman, D. (2010). Why Is Cash Budgeting Important to the Organization? Retrieved December, 8, 2012, from http://www.ehow.com/info_8565735_cash-budgeting-important-organization.html Murray, J.(2011). Budget. Retrieved December, 8, 2012, from: http://biztaxlaw.about.com/od/glossaryb/g/Budget.htm Ridwan, H. (2012). Risk Analysis in Capital Budgeting, Retrieved December, 8, 2012, from: http://crmsindonesia.org/programs/research/risk-analysis-capital-budgeting Mymoneycoach (2012), what is budgeting. Retrieved December 5, 2012 from http://www.mymoneycoach.ca/what-is-a-budget-and-budget-planning-forecasting.html