Question

In theory, all firms (and individuals) should budget for operations. In practice, however, many companies (and people) do not use a formal budgeting process as part of their financial planning. Describe the budgeting process used at your current or previous place of employment, or in your personal life.

Answer 1

Budgeting process which is used in my organisation is highly flexible in nature and it is always trying to incorporate various changes in the environment regularly although it is leading to incurring a lot of cost.

Budgeting process is a process in which there will be stimulates about the expenditures and the incomes of the company and it will be leading to managing of these expenditures and income in order to achieve various goals in the organisation and it can be seen in case of my organisation which is focusing towards optimum utilisation of the resources available to it and it is following up with the bottom-up budgeting procedure which is more participatory in nature and it is accommodating the needs of various sections of the the workers in the organisation so they feel like they are participating in the formulation of the blueprint of the organisation.

Bottom up budgeting process is also helpful for large amount of participation and it is highly flexible in nature because there is always a need to adapt to the changing norms of the environment which is Focus that adoption of changing dynamic environment into the overall budgeting procedure which will provide with the most efficient level of goal achievability and it will help in fulfillment of objectives of employees as well because it will be leading to maximisation of the value of the company.