Budgeting, Planning, And Planning

770 WordsJul 9, 20164 Pages
Budgeting is planning, making financial arrangements to spend money now and in the future. In a business, budgeting involves a more detail process. Therefore a measurable plan is created and is used as a tool for making future day-to-day decisions that will be beneficial for the organization. It helps the organization to determine whether not they will be able to accomplish their goals. Having a budget helps an organization to prioritize their spending and focus on the most important things. It also assists organization from experiencing growth stall. Budget Forecasting and Planning aids an organization in tracking their monthly finances and also with their long term plans. (Shastri & Stout, (2008) stated “Budget can be part of the strategic management process of an organization.” (p.20) I work with an organization where budgeting is an integral part of what we do, and I’m sure that the case with others as well. I’ve held a few accounting positions in my time but my experience in budgeting is somewhat limited, in that it was basically focus on one main area. In one of my past work experience, I was responsible for the entire department’s within the school purchasing of supplies budget. I am still responsible for that portion in my current organization. I had to keep track of spending and my responsibility was to make sure that none of the department went in the red (a term that we use at organization) when it comes to ordering of supplies. In order for me to keep track and
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