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4. Describe the Sales Tax Liabilities to Which the Website Will Be Exposed. Assume That Ellen Will Operate the Site from Her Home in Michigan and That Epe Will Manufacture the Merchandise in Texas. the Merchandise Will

By trishj74 Aug 31, 2013 369 Words
A master budget is very important in large corporations. It is the main reason for running a business effectively. I have a budget at home that is very detailed and if I do not follow it exactly, then I run into a lot of problems. I know that it is similar to a business budget but definitely not as involved. A master budget contains all the other budgets in a business. A budget is a major resource to a company because it gives a detailed overview of the finances of the company. The budget answers all the question regarding the revenues and expenses of the company. Its helps management to avoid finical problems and make quality decisions regarding the finances. Having a budget forces management to think ahead and see what they need to reach their goals. It also is a great tool to evaluate the performance of the company’s finances and employees. A business needs to determine how much they are spending on expenses. Business owners have to carefully plan and review their finances. The master budget is the most important role in running a successful business. “Budgeting for future growth opportunities ensures that companies have capital on hand when needing to make a quick decisions for expanding business operations” (Vitez, 2013). Budgets show how a company is spending money and how they are going to spend money in the future. Large companies have accountants create their master budget. There are many software’s out there today that make it a little easier to keep track of all the financial documents. If a company does not follow a master budget, many things can go wrong. First of all, it would be very difficult to calculate accurate sales forecasts. Employees can fail to accept responsibility in making a reasonable budget for their department. If a budget is not followed it can be left open for any employee to lie and cheat in the budget process to get possible bonuses. Some businesses could even go bankrupt. This is why it is extremely important that budgets be followed. Vitez, O. (2013). Why Is It Important for a Business to Budget? Retrieved from Chron:

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