Expenditures, Revenues, and Budgets
Expenditures, Revenue, and Budgets
Budgeting is an important subfield of public administration (Tyer & Willand, 1997). A budget system balances expenditures and revenues (Smith & Lynch, 2004). In public budgeting, revenues are funded by sources. These such sources are fees and special assessment, lotteries, and public, and other miscellaneous revenue. Another important factor of budgeting is the ability to make informed decisions. The ability to recognize and understand financial terms is an important quality to have when making financial decisions. There are seven financial analysis tools that can be used in this decision-making process and also other financial analysis tools can be used. Importance of Informed Financial Decisions
Decisions are made every day, weighing the benefits, and the risks of possible outcomes. Financial decisions can be nerve racking, and obtaining as much information before making a decision is important in regard to finances. Informed financial decisions can be made following simple steps. The first, and one of the most important steps, is to set aside emotion. Financial decision making should not be made based on emotions, because they can be powerful motivators, which may not be based on facts. Hard, cold logic of mathematics are the foundations of financial decisions. When making the decision, it is important to have an understanding of all the facts and possible outcomes of each situation. Taking in account each factor that can benefits or cause a failure of the return of an investment. Creating a worst and best case scenario can help as well in decision making by reflecting how much can be lost if the wrong decisions is made and also keeping realistic possibilities in mind. Predicting the outcome of a decision can be difficult, so having a professional look into the financial decision options can help...