Comprehensive Budgeting Process

Words: 812

Pages: 4

Open Document

Budgeting and Its Components, and How the Comprehensive Budgeting Processes Lead To Better and Efficient Financial Decisions
In this essay I would discuss and shed light on the financial budgeting process, its individual components and how the integrated budgeting procedures helps individuals make better financial decisions.
Financial Tools Which Enable Better Financial Decisions
Financial tools are means through which better, prudent and proactive choices are made and which assist individuals to securely achieve their short- and long term financial objectives and goals. One of the tools, which we have thoroughly investigated in this chapter, is financial budgeting. It is an integral tool and a continuous part of the overall planning process which helps individuals to make smart and effective financial decisions. Personal budgeting not only allows individuals to make calculated projections about their future financial status but it also allows them to treat the projected items as …show more content…
It only includes projected and planned items for major capital expenditures which are non-recurring in nature (Siegel & Yacht, 2009, p. 92). Non-recurring possible futures income amounts are ignored while drafting a capital budget due to the convention of financial conservatism which suggests underestimating income and gains, and to overestimate expenses, costs and possible losses while planning (Siegel & Yacht, 2009, p. 91). Planning and projecting non-repeating capital expenditures concerns those items which does not affect future income statements. For example projected plans to secure an infrastructure-overhauling, purchase a car or buy a house would be a non-recurring financial activity which would come under a capital budget. Further operating budgets fulfill short-term lifestyle goals of individuals whereas capital budgets cover and eye for longer term

The Federal Budget Process

In America at least three attempts have been made to reform the federal budget process. Three presidents, namely; Nixon, Carter and George W. Bush introduced their reforms. Nixon administration attempted a strategy called Management by objective (MBO), Carter administration brought the Zero-base budgeting (ZBB), and lastly the George W. Bush administration instituted Performance Assessment Rating Tool (PART). All these strategies were introduced to secure larger control over budget preparation.…

Words 633 - Pages 3

Personal Budgeting Process

The financial personal planning and budgeting process in many respects resembles the process used by business. Before a plan can be made, certain questions need to be addressed such as what the goals of the overall budget are and what time frame the budget should cover. Once goals have been defined and some preliminary data is collected the process of extrapolating the data to estimate what (in the broadest sense) needs to be done to achieve those goals. With goals and timeline in place, the budget…

Words 517 - Pages 3

Resource Allocation Essay

distribution of resources, and in particular finance, from the centre to peripheral levels. It generally concerns broad levels of aggregated financial resources. Budgeting implies the more detailed determination of precisely how these funds are to be used. Given the importance we have placed on planning as a process that leads to action, budgeting and resource allocation are major planning instruments. Basis for Resource Allocation * Public goods and the rationale for public intervention. * Marginal…

Words 4191 - Pages 17

Guillermo Furniture Store Analysis: Fin 571

Guillermo’s profit margin shrunk as prices fell. Capital budgeting is “the process of choosing the firm’s long-term capital investments. This includes investments in such things as land, plant, and equipment. Capital budgeting is fundamental because a firm is essentially defined by its assets and the products and services those assets produce” (Emery, Finnerty, & Stowe, Pg 187, 2007). Capital budgeting projects are chosen and judged by the value they create for a company. The…

Words 1270 - Pages 6

Contract The Budget System Of Fiscal Accountability In Presidential And Parliamentary Systems Of Government

Comparative Public Administration PROJECT Compare and contract the budget processes and systems of fiscal accountability in Presidential and Parliamentary systems of Government. Student: Lyn Marie James Abstract There is diversity of forms of government (Laundy, 1989) and different ways of classifying them and as such, this paper sets out to discuss the budgetary powers of the legislature under different forms of government, and the environment that informed the political structures…

Words 8218 - Pages 33

0176530835 383165 Essay example

Planning, Budgeting, and Controlling Copyright © 2014 Nelson Education Ltd. 7–2 Learning Objectives 1. Comment on the activities that link planning, budgeting, and controlling. 2. Describe the meaning of planning, its process, and how to measure organizational performance. 3. Explain why SWOT analysis and planning assumptions are important for setting goals and preparing plans, budgets, and projected financial statements. 4. Show how budgeting fits within the overall planning process, the different…

Words 1675 - Pages 7

Essay on Budget and Budget Effective Budgeting

Dropkin/Halpin/La Touche Characteristics of a Good budget Effective budgeting is thoughtful and deliberate. Good budgeting is inclusive. It is top down and bottom up. It involves open communication of priorities, goals and operational plans Finally, strong budgeting is an ongoing process. The Budget Book for Nonprofits Dropkin/Halpin/La Touche The Budget Cycle itself (Bland p168) … Preparation Legislative approval (Planning & Budgeting) Executive implementation (Budget Execution) Accounting and…

Words 1162 - Pages 5

Decision Theory and Final Test Essay

Study Guide for the Final Test. Fall 2012 The final test will be open notes open book. My cell phone is 409 291 3862,. My office is at Cherry engineering room 2203, should you have questions. What to study for the final test The final test is a comprehensive test. Please study ALL the material from your previous test The following three topics were not covered in the previous tests and are scheduled to be evaluated in the final test. Topic 1. Taxes and depreciation (Canada book): Make sure you understand…

Words 436 - Pages 2

Budget Changes Essay

intentional diagram that concentrates on his or her long-standing objectives and how to attain them. The layout of the graph on average takes in economic predictions and protects a five-year phase. Next productions arrange a once a year process set up that offers a comprehensive viewpoint for the upcoming year. Because things revolutionize after the year begins, companies change his or her tactics, companies sometimes give up his or her everyday ideas. The familiar charts get sudden and unforeseen modifications…

Words 559 - Pages 3

Barriers to Implement Sustainability Essay examples

business aspects. The best practices recommended for Riordan Manufacturing include; waste minimization, employee training and a comprehensive training and monitoring program. These recommendations will encounter barriers from a financial and social aspect of business. The first barrier is from a financial stand point. The recommendations for Riordan are to process waste at an offsite facility, also to follow in accordance with the Clean Air Act in reducing air pollution. Retaining the proper…

Words 366 - Pages 2