Question

A paragraph for each question.

1. What do you see as the most important aspect of budgeting?

2. Where would you say that budgets get off track most often?

Answer 1

Framing a budget involves the financial coordination and planning of the non-financial to achieve the organization’s goal and the framed objectives.

There are no set rules and full proof for the methods to be prepared to frame the effective budgets.

Budget is the value to set a monetary value for all activities and proceeding in a future for a particular period.

This would be based on the anticipation and participation termed as forecasting.

· In my Opinion the most important aspect of preparing a budget is planning and setting up a vision and mission. This is a leading source and helps in drawing the specific course of activities of the future. It correlates the activities we want to achieve, the money spent, etc. A budget would be framed considering all the facts. The business which had past experiences would reflect the accounting data for earlier periods. These records should be analyzed and evaluated for budgeting in the future period. For example that the revenue income in 2018 of the firm and what is going to be in 2019. The person specialized in the organization would provide knowledge for framing budget and that would lead to more complex situations in the market. Planning and mapping the things are different from implementing them at the ground level efficiently. Thus, proper measures should be undertaken where a person is efficient to accomplish the task assigned.

· The Budget off-track the most when the Company is not prepared for unpredictable situations which can adversely affect the working of the company or it is unable to deviate the deficiency occurring on a timely basis. There should be proper monitoring at each step and the difference between the targets and actual should be monitored continuously to overcome the differences arising.