Question

In: Accounting

Briefly discuss the budgeting process

Briefly discuss the budgeting process

Solutions

Expert Solution

Budgeting process is the future planning of income and expenditure in order to streamline the expenditure process. In business, it serves as a monitoring and controlling method to manage the finance efficiently.

Steps in budgeting process are -

1. Make realistic goals - To make smart spending choices one should make or set goals for the finance.

2. Calculate your earnings - To identify your income and expenses you should find out how much you earn each month and where it all goes.

3. Separate needs and wants - For this, set the clear priorities for the business and the decision become easier to take.

4. Make your budget - Here, balance your budget to accommodate everything you need to pay for. Make sure that you are not spending more than you make.

5. Put your plan into action - This is the step where physical action is done. Make your spending to when you receive your income.

Thank you, give thumbs up if you like.


Related Solutions

discuss the purposes of budgeting process.
discuss the purposes of budgeting process.
1. Briefly discuss the budgeting process. (5 marks) 2. Based on your selected journal article, discuss...
1. Briefly discuss the budgeting process. 2. Based on your selected journal article, discuss citing examples whether the budgeting process satisfies the purpose of planning, controlling and evaluating performance. 3. The two widely used practices in preparing budgets are ‘top down’ budgeting and ‘bottom up’ budgeting. Identify and explain the practice adopted by the organisation discussed in your selected journal article and further explain the behavioural implications of adopted practice. 4. Based on your literature findings (above), critically evaluate the...
briefly discuss the target marketing process
briefly discuss the target marketing process
Discuss and define each entry in the budgeting process for a Healthcare organization. Discuss the possible...
Discuss and define each entry in the budgeting process for a Healthcare organization. Discuss the possible reasons why the budget may be successful or failure is. Discuss (describe and define) the principal element of a budgeting process for a Healthcare organization. Analyze the possible causes of why a budget plan may be successful or fail. Offer examples of success and failure.
1. What is capital budgeting? Discuss the five stages in the capital budgeting process. 2. Suppose...
1. What is capital budgeting? Discuss the five stages in the capital budgeting process. 2. Suppose a toy manufacturer is faced with the following collection of investment projects: (a) Opening a retail outlet (b) Introducing a new line of dolls (c) Introducing a new action figure in an existing line of action figures (d) Adding another packaging line to the production process (e) Adding pollution control equipment to avoid environmental fines (f) ) Computerizing the doll-molding equipment (g) Introducing a...
Briefly describe some of the advantages and disadvantages of a Zero Based budgeting process. How does...
Briefly describe some of the advantages and disadvantages of a Zero Based budgeting process. How does this compare to the process used in your organization?
1. The budget committee is an important part of the budgeting process. Discuss the activities of...
1. The budget committee is an important part of the budgeting process. Discuss the activities of the budget committee. 2. When preparing the budgeted balance sheet, where would you look to find the information for the ending cash balance? Explain. 3. Why is it a good idea to create a "Budgeting Assumptions" tab when creating a master budget in Microsoft Excel (or other spreadsheet)?
Discuss the capital budgeting model, including the process used, as well as the implications for the...
Discuss the capital budgeting model, including the process used, as well as the implications for the decision-making process. Describe the implications of a positive, negative, and zero NPV. In your opinion, which parties are most directly impacted by a corporation initiating a positive NPV project? Explain. Compare this technique with at least three other analysis techniques. Consider the purpose, strengths, and limitations of each technique as well as strategies for capitalizing on each analysis.
Describe the general Budgeting Process and the advantages of using a Budgeting Process in a business.
Describe the general Budgeting Process and the advantages of using a Budgeting Process in a business.
Compare the process of budgeting revenues and expenses with the process of budgeting assets, liabilities, and...
Compare the process of budgeting revenues and expenses with the process of budgeting assets, liabilities, and owners’ equity, and explain how this information is included in the QuickBooks Accountant budgeting process. Why is budgeting an essential practice for all organizations? What benefits does budgeting present to the organization, and what happens if an organization chooses to not budget?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT