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Budget Cycle
Assessment of the Value of the Budget Cycle
The budget cycle is a key element of the financial management of any organization, whether public or private (Messer, 2020). The cycle begins with revenue estimation, which establishes the baseline for all subsequent budgeting decisions. It is generally performed in the executive branch by the finance director, clerks office, budget director, manager, or a team therein. This step is followed by budget formulation, which involves developing a detailed plan for spending and revenue generation. The formulation step includes reflecting on the past budget and setting goals for the future so as to reconcile the difference. Once the budget has been formulated, it must then be presented to relevant parties for approval, through a process of budget hearings. Budget hearings can include departments, sections, the executive, and the public to discuss changes in the budget. Once the budget has been approved, it can be finalized and adopted by the legislative body. Finally, the budget must be executed, meaning that spending must be carried out in accordance with the approved plan or amending the budget as the fiscal year progresses (Messer, 2020). The budget cycle is therefore a critical tool for ensuring that an organizations financial resources are used in an effective and efficient manner.
As the Bible explains in Proverbs 15:22, Without counsel plans fail, but with many advisers they succeed. The wisdom of...…used correctly, these techniques can provide a significant competitive advantage. However, it is important to note that budgetary planning is only as effective as the data that is used to inform it. As such, an organization needs to ensure that it has access to accurate and up-to-date information in order to make the most of these techniques. A great line from Proverbs 27:23 is: Know well the condition of your flocks, and give attention to your herds. Budgetary planning techniques essentially involve the organization getting to know the condition of the flocks and giving attention to the herds. If this knowledge or process of getting to know is lacking or not in existence, there will no…
References
Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems:Reactive and proactive types of planning. Journal of management control, 29(3), 327-360.
Messer, R. (2020). Budget Management Decisions. In Financial Modeling for DecisionMaking: Using MS-Excel in Accounting and Finance. Emerald Publishing Limited.
Nikodijevi?, M. (2021). Implications and challenges of using driver-based budgeting incontemporary business environment. Trendovi u poslovanju, 1(17), 49-57.
Uddin, M. M., Siddikee, M. J. A., Begum, H., Rashid, M. M., & Islam, R. (2022).
Measuring the relationship and trend analysis among the macro-economic variables (Revenues, per capita income, GDP, and annual budget) in the successive periods of Bangladesh. Journal of Business, 7(2), 01-11.
Their insights can help to determine the longer term impact on them. Students were included because they can show how these cuts will affect them and offer ideas about ways to possibly offset them. Teachers can discuss how certain decreases will affect the quality of education and their ability to educate students. (Lunnenburg, 2011) (Olden, 2012) The people who are excluded from the budgetary process were selected because they can
Budgeting and Financial Planning Distinctions between budgeting & financial planning. The difference between budgeting and financial planning The difference between budgeting and financial planning Budgeting and financial planning are often used interchangeably in the speech of laypersons, when they are talking about the economic outlook of organizations. They are, however, very different processes, although the two are interrelated. One analogy is that of someone trying to maneuver the organization like a rowboat over a
Budget Airlines: The Destruction of Australia's Domestic Tourism Industry or Convenient Way to Travel Internationally? With such a beautiful and exotic national landscape, one can immediately garner why Australia is a travel destination for many tourists. However, it is easy to overlook the fact that many of these tourists, whose travel is crucial to the Australian economy, are in fact native Australians looking to explore their vast and varied national landscape. One
Budget Variance Managing budgets and keeping within those boundaries is a difficult task and requires a steadfast approach with practical strategy. Budget forecasts often are used as important guidelines that are used to keep organizations in line with their corporate strategy. Although this seems rather simple, it is not. The purpose of this essay is to discuss and highlight specific strategies that can be applied to assist in managing a budget
Budget plan is a quantitative expression of planned income and expenses for a given financial year. A budget contains an estimated projected expenses and revenue for a financial year. A budget also reveals the estimated costs, expenses, liabilities and assets and the cash flows for a fiscal year. Syracuse is an historic city based in Sicily, and the city budget for 2011-2012 fiscal years is to achieve a balanced between
Budgeting as an Adequate Tool for Planning and Control in Organizations: A budget apart from being a coordinated and comprehensive financial plan for the resources and operations of a given future period is also intended to promote the managerial functions of control and planning. Over the years a budget has been perceived as a tool for forced planning as it constitutes the most important and basic management functions since other managerial