The Six Key Steps in an Operational Budget Cycle

1090 Words4 Pages
Abstract It is clear that operational budget has proved to be very helpful business tool as it gives one the opportunity to break his annual strategic plan as well as goals into monthly predictions about the financial revenue as well as operating expenses. The paper will describe the six key steps in the operational budget cycle, and briefly summarize the activities that take place in each step. Also to be covered is the way in which a brand can be developed and promoted in the market. We will also highlight on the role of Healthcare Financial Management Association in modern healthcare leadership and what professional growth opportunities they offer their members. Q1. Operational budget Budgeting is not only useful for a business organization but it is also useful for personal planning and spending. The existence of a well structured budget within an organization or a personal budget tells how well a person or the business is organized. From a business perspective regardless of the type and size a budget is an important recipe for success and smooth running of the business. The key steps in the operational budget are:- Setting up the Budget which brings about the format as well as the layout for organization`s operating budget. come to a decision on the agenda for the organization`s budgeting cycle. Dole out answerabilities for creating as well as contributing the numbers, generating as well as allocating the budget, and evaluating as well as scrutinizing it.
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