Budget Assignment (Solution)
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Added on 2020-02-14
Budget Assignment (Solution)
Added on 2020-02-14
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Running Head:B U D G E T R E P O R T 1Bu dg et re po rtName Institute
B U D G E T R E P O R T2Budget ReportPurpose and objectivesThe fundamental goals of creating a budget for a private non-emergency hospital like Emelia’s is to track, control and plan the spending of financial resources. Well-organized organizations are aware of the significance of making appropriate plan of their activities to follow the desired goals. In the environment of businesses like Emilia’s, there are consistent changes taking places, most of which are also influencing the market on greater scales. These changes are creating demanding situations for organizations as they are now required to improve the process of making plan, evaluate and control in the light of necessities of rapidly changing methods of decision making that can make sure of quality, profitability and expansion of its objectives.Budget serves as a resourceful instrument for exercising control and planning of the organizations’ operations in most effective manners. It establishes, as accurately as possible, howthe company's business is expected to run, usually within a period of at least one year, providing a very close picture of the scenario in coming future. For establishment of the team’s goal, budget serves as the mean to follow the required path. The practices related to the budgeting of business organization are among the administrative methods extensively used by multiple level institutions in business like those of private health care provide.In today's competitive business environment, the financial-accounting professionals who see budgets as a powerful tool that enables them to achieve not only the goals of their companies but also their own professional success stand out. A global planning system is a set of plans and policies that, formally established and expressed in financial results, allows management to know
B U D G E T R E P O R T3the company's operating results and then execute the accompaniments necessary for these results to be achieved and possible deviations Analyzed, evaluated and corrected.Fundamentally, the budget system implies the use of accounting techniques and procedures applied in advance to the facts resulting from plans, policies and targets to achieve a desired result. Therefore, at the end of the process, the financial statements are prepared under assumptions conditions that are expected to occur during the period. In spite of being seen by some officials as more of a maneuver by management to curtail their freedom and action, as wellas a way of investigating and controlling their actions, the purpose of budgets, according to (Hope and Fraser,2013). In the control and planning tasks, formalizing and systematizing these tasks, thus creating conditions for the improvement of administrative actions, and allowing a more objective assessment of the performance of the various sectors of the organization.When we work without the budget, we work only on the billing month and it is expected from the individuals at leading positions to be aware of the established goal and communicate them further to their teams. This has been happening a lot with medium and small-sized businesses like ours, as reluctance has been shown against the usage of corporate for managing and predicting the future outcomes, saying that this is not part of their reality. These aspects needto be revised as, due to the structure of their organization and their ways of dealing with, they have certain vulnerabilities related to the changes, that makes them need to develop planning tools for making it possible to streamline decisions. A true budget involves all employees of the company, particularly the individuals at leading and supervising positions are required to executeit as planned. A sequence of forecasts is included in budget, which is founded on the anticipations and expectations of the market and performance in general.During this process, the
B U D G E T R E P O R T4past data is always taken into account along with the facts that had altered the patterns of predictability in past. The full business budget necessarily includes the following specific budgets:•Budget of resultBudget of cashBudget of investmentBudget of general expensesTotal costs budgetBudget of productionBudget of salesAfter the budget is being place the goals for individuals and allocation of resources is set for at least a duration of a year. The teams are required to follow the budget’s goals and objectives on monthly basis for making sure that the predictions have been realized and redirected to act in accordance with them for complying with the desired inclinations (Lee et al,2012).Applying traditional budgetingLike a number of other facilities, we have been following the model of traditional budgeting at Emilia’s hospital. By providing coverage for on whole year without making changes in the middle, the process of budgeting could be approached in traditional manner. The forecast presented in this form of budgeting will not changing unless the duration for which
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