Budgeting Is a Key Component in Management Short or Long Term Planning

Topics: Time, Management, Term Pages: 2 (758 words) Published: October 4, 2012
Budgeting is an important process of management, once we prepared a completely budget, we can use it to examine whether our overall plan can be adapted closely. I agree the statement ‘budgeting is a key component in management short or long term planning’. Good watch prevents misfortune, an effective budget will let the firm make money successfully and prevent the overdraft or any financial problem of a company in the future. Besides that, build the shelter before rain, prepared a budget in advance will get more guarantee and after that we can do our routine work smoothly. Even if our short or long term project is unexpectedly, it would not be the big amount of the gap with the target. Zyl19940802,(2012 May08)agree with the statement and he/she indicates that “I agree the statement ‘ A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. It means budget is very particular plan for a company so that a company can actually know about the financial problem. In business, budgets help you determine how much money you have and how you will use it, and help you decide whether you have enough money to achieve your financial goals. As part of a business plan, a budget can help convince a loan officer that you know your business and have anticipated its needs.”(pg1) Budgeting versus Forecasting and Remedy Budgeting estimates the income and expenditures for a goal or company. It is forecasting and monitoring income and expenses for the project, so that the project can working in the normal condition rather than unable to make ends meet. Besides that, when managers prepared a budget, it is not only prepared for the company financial problem, it can be a forecaster to expect some opportunity or problem of the company in the future. It is because budgeting management can examines the performance report, if there is some difference between...
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