Question

Consider your current company, or a company that you have formerly worked for, and describe and critique the budgeting processes that are used for that organization.

Answer 1

Answer -  A budget a formal and future plan of action expressed in monetary terms. It is formulated with an objective to achieve strategic objectives and goals of an organization. It gives a competitive edge to organization in market place and executive plans....

Time and money are scarce resources to all individuals and organizations; the efficient and effective use of these resources requires planning. Planning alone, however, is insufficient. Control is also necessary to ensure that plans actually are carried out. A budget is a tool that managers use to plan and control the use of scarce resources. A budget is a plan showing the company’s objectives and how management intends to acquire and use resources to attain those objectives.

Budgeting is done in order to keep track of the expenditures and income. ... It begins by deciding upon the financial goals according to which the budget will be made. Other important activities in the budgeting process include things such as forecasting, monitoring, controlling and evaluating the financial goals.Budgeting process is very crucial for any business entity. Without a proper budget, a business can never keep track of how much it has earned and how much it has spent. Budget serves a great guide by which a business can oversee its income stream and can identify potential dangers to it beforehand. Furthermore, budget acts as a valuable tool in order to take control of how a business spends. A budget makes sure that all the money is being spent in the right direction and financial goals are attained.