Financial Budgeting:
Budgeting is a complete process which a business organization performing to express its quantitative needs for completing its ongoing business operations and projects.
There are some characteristics of the budget which helps us to explain that all topic here and that characteristics are mostly known as the driven tools for a business department and leadership to make a budget for its all business units and departments to achieve the desirable performance and result within the limited resources. These tools are Planning, Controlling, Motivational and Communication.
Actually budgeting helps the business to plan its future needs according to its mission and objectives. It also leads the business management to control their expenses and risks which are relating to their business operations. The very good example for controlling is to control the inventory turn over issues because the miss management in the supply chain process leads the company to increase in the per unit product cost and its also increase the relevant costs like the direct labor, direct material and the factor over heads costs.
The budgeting take as a motivational tool for the business management and for its employees . It is also a very effective tool to measure their experience and expertise, mostly the business operations managers like the budgeting because that’s helps them to evaluate there performance and their productivity for their business units and organizations. The employees sometimes not like the budgeting because that make some restrictions on them to work in a uniform and pre planned disciplined policy and putting as a slack or restriction through the controlling process which not allowing them to make some negotiations with a running performance and forcing them to look the budgeting mile stone and forcing them for the high performance and productivity. So that’s the reason we take the budgeting as a motivational tool for both the employees and business managers.
Budgeting is also a mean of communication between the different working units, departments or section of a business project. That guide them to make a very perfect communication between each other and put their complete efforts to achieve their best result with in the given or budgeted time period.
The budgeting playing a very perfect role in the business success. That’s the reason some time the business take budgeting as a profit plan which leads the business to plan its activities and control its performance and motivate its all factors for success and profit and that’s the main source of communication between its all production units and its departments which are performing the same task under a given or predetermined budget.
Budgeting is a complete process which a business organization performing to express its quantitative needs for completing its ongoing business operations and projects.
There are some characteristics of the budget which helps us to explain that all topic here and that characteristics are mostly known as the driven tools for a business department and leadership to make a budget for its all business units and departments to achieve the desirable performance and result within the limited resources. These tools are Planning, Controlling, Motivational and Communication.
Actually budgeting helps the business to plan its future needs according to its mission and objectives. It also leads the business management to control their expenses and risks which are relating to their business operations. The very good example for controlling is to control the inventory turn over issues because the miss management in the supply chain process leads the company to increase in the per unit product cost and its also increase the relevant costs like the direct labor, direct material and the factor over heads costs.
The budgeting take as a motivational tool for the business management and for its employees . It is also a very effective tool to measure their experience and expertise, mostly the business operations managers like the budgeting because that’s helps them to evaluate there performance and their productivity for their business units and organizations. The employees sometimes not like the budgeting because that make some restrictions on them to work in a uniform and pre planned disciplined policy and putting as a slack or restriction through the controlling process which not allowing them to make some negotiations with a running performance and forcing them to look the budgeting mile stone and forcing them for the high performance and productivity. So that’s the reason we take the budgeting as a motivational tool for both the employees and business managers.
Budgeting is also a mean of communication between the different working units, departments or section of a business project. That guide them to make a very perfect communication between each other and put their complete efforts to achieve their best result with in the given or budgeted time period.
The budgeting playing a very perfect role in the business success. That’s the reason some time the business take budgeting as a profit plan which leads the business to plan its activities and control its performance and motivate its all factors for success and profit and that’s the main source of communication between its all production units and its departments which are performing the same task under a given or predetermined budget.
Comments
Post a Comment