Budgeting

760 Words Apr 26th, 2015 4 Pages
Robyn Cox
Unit 5 Individual Project
Budgeting: FINA425-1403B-01
American InterContinental University
August 23, 2014

Organizations should prepare budgets with budget control systems in place. The financial planning of the organizations targeted operation is considered budgeting. There are processes that are essential to protecting the financial well-being of the organization. There are challenges that may arise within the organization when implementing a budget and budgetary controls.
What could go wrong? What are three possible risks? Overspending on a budget sometimes can be bad forecasting on part of the budget manager. Incomplete information or just poor forecasting can lead to an underestimation and/or unreal optimism of
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Because the investment specialists have been spending out of control they have made certain areas vulnerable. Marketing supplies, transportation costs and works items are all vulnerable now because of how Money Cares Investment Corporation has been overspending. Out of control spending makes these areas vulnerable because they can substantially increase cost.
Identify the company’s assets? One of Money Cares Investment Corporation asset is that they only have a select amount of employees who depend on modern technology. They also have assets that are their investments, cash in the bank and the cash in their hands. Not to mention equipment, furniture and fixtures along with the building they are occupying. If Money Cares Investment Corporation own any vehicles that will be considered an asset too.
Where is the most money spent? The majority of the spending for this project is done using credit cards. The money is being spent on the marketing supplies, transportation, and workshop items. The money is definitely not being used for investments and promotional aspects. It is obvious that allowance needs to be made for advertising and sales. The investment specialists need to reduce in house spending to bring down the cost of operations. At the rate they are spending the cost of running the business is surpassing the capital investment. The capital investments are the things Money Cares Investment Corporation will need to buy like computers, etc. The
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