Operating Budget
Health Care Budget
HCS/577
July 27, 2015
Professor Michelle Gomillion
Health Care Budget
Most entities and organization create budgets as a guide for controlling its spending, prediction of profit, and it expenditure as they progress toward a set goal. Budget involves pulling resources together to achieve a specific goal. According to Gapenski (2006), budgeting is an offshoot in a planning process. A basic managerial accounting tool use in holding planning and control functions together is referred to as set of budgets (p. 255). One major setback manager or budget developer encounter is trying to design a future, a process that cannot be created with the precision just right. This article highlights some financial management practices considered most effective in creating and monitoring an operating budget. It also highlights the most common least effective financial management practices in creating and monitoring an operation budget.
Most Effective Financial Management Practices in an Operating Budget
Creating and monitoring an operating budget needs a careful consideration of so many factors; one of such factors is managing the finances. To do this, here are some of the most effective practices many organizations adopt in creating and monitoring budgets; having a corporate strategy, creating allocation procedures, good incentives, streamlining budget, excellent cost management practices, and flexibility of budget.
Having a corporate strategy
Evaluating the progress of a budget is dependent on expenses and how resources are allocated. Because of this singular fact, linking a budget creation to a corporate strategy makes the budget more effective. When a budget is linked to corporate strategy, it gives all parties involved in creating and monitoring the budget a clearer understanding of the strategic goals. To ensure the success of this practice management must adopt a good communication channel as this will create the ease of setting a challenging but
HCS/577
July 27, 2015
Professor Michelle Gomillion
Health Care Budget
Most entities and organization create budgets as a guide for controlling its spending, prediction of profit, and it expenditure as they progress toward a set goal. Budget involves pulling resources together to achieve a specific goal. According to Gapenski (2006), budgeting is an offshoot in a planning process. A basic managerial accounting tool use in holding planning and control functions together is referred to as set of budgets (p. 255). One major setback manager or budget developer encounter is trying to design a future, a process that cannot be created with the precision just right. This article highlights some financial management practices considered most effective in creating and monitoring an operating budget. It also highlights the most common least effective financial management practices in creating and monitoring an operation budget.
Most Effective Financial Management Practices in an Operating Budget
Creating and monitoring an operating budget needs a careful consideration of so many factors; one of such factors is managing the finances. To do this, here are some of the most effective practices many organizations adopt in creating and monitoring budgets; having a corporate strategy, creating allocation procedures, good incentives, streamlining budget, excellent cost management practices, and flexibility of budget.
Having a corporate strategy
Evaluating the progress of a budget is dependent on expenses and how resources are allocated. Because of this singular fact, linking a budget creation to a corporate strategy makes the budget more effective. When a budget is linked to corporate strategy, it gives all parties involved in creating and monitoring the budget a clearer understanding of the strategic goals. To ensure the success of this practice management must adopt a good communication channel as this will create the ease of setting a challenging but
References: Andersen, A. (2000, January). Best Practices: Developing Budgets. Inc., 1(1), 4. http://www.inc.com/articles/2000/01/16379.html Bragg, S., & Burton, E. (2006). Accounting and Finance for Your Small Business (2nd Ed.). Hoboken, NJ: Wiley and Sons, Inc. Gapenski, L. (2006). Healthcare Finance (4th Ed.). Retrieved from The University of Phoenix eBook Collection database.