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Hi, need to submit a 1500 words paper on the topic Vitality of Budgeting Process and Financial Reporting.
Hi, need to submit a 1500 words paper on the topic Vitality of Budgeting Process and Financial Reporting. Structured planning of the fiancés in an organization covering the projected cash flow, costs incurred for administration, revenues generated and the taxes to be paid will help in meeting the objectives of the organization in a better way. It will increase staff motivation, keep the process transparent, and help a lot in planning for the future precisely (Budgeting and Business Planning, 2009). Sticking to a solid budget plan will and cross-checking whether the process follows it throughout the year helps a lot in identifying over expenditure problems before the issue gets out of hand.
The budget is simply a process of translating all your plans for the fiscal year in monetary terms. It is a perceived estimate of how much monetary resource is necessary to make materialize your plan practically and how much profit you expect from the same. The key elements of a budget are projected expenses, projected income, and the interaction of both.
A budget is not a stone carved commandment. It can be amended at any time to reflect the practical adjustments carried on throughout the year. For example, a department might have allocated a certain amount to purchase ten computers. They might reduce the number of systems and spend that amount to train the employees in using them effectively when the plan is implemented. The budget is not a simple record of expenditure or a report necessary to submit to the donors who will fund those (Civicus, 2001). Some companies seldom refer to the annual budget or the financial reports throughout the year. It is a very erroneous approach. The very purpose of creating a budget is to use it as a guiding factor and plan the expenses around it. Budget is not something anyone and everyone in an organization can create. Senior staff in the organization like the project managers, finance managers, and the donors who serve as the source for the money should sit together to draw an effective plan based on the quantitative as well as qualitative necessities. Every person in the organization should be made to understand the key points in the budget.
