Assignment on Budgeting Sample

Added on - 21 Apr 2020

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TaskDescribe the importance and benefits of budgeting and the process of budgetadministration.(not more than 800words).V2017.T4. 1.0FNS50215 Diploma of Accounting/ FNSACC507/ 2017/ T4/ / Online Learning / WK 3Page1of4
Budgeting is a concept and methodology which is used by the manufacturing companies,individual, government or any other company to predict the future and make variousdecisions about the process and activities of the company. This process helps the company tomake various new decisions and strategic decisions about the activities of the company. It isa important concept of financial success. Budgeting is a continuous process which startsfrom planning and collecting the budget process and financial information and never ends.Budgeting is very important for the business to analyse and manage the business functioningof the company. Some importance of the budgeting has been discussed below:1.Facts:Budgeting process helps a company to collect the various financial information’s andmanages it in a proper way. Further, it has been analysed that budgeting helps thecompany to manage all the business functions and the process in a proper manner toanalyse and examine the future of the company and manage over the revenue andexpenditure of the company (Garleanu & Pedersen, 2007).2.Limit expenditure:Budgeting process helps a company to limit the expenditure of the company throughimplementing various strategies and polices it in a proper way. Further, it has beenanalysed that budgeting helps the company to manage all the business functions andthe process in a proper manner to analyse and examine the future of the company andmanage over the revenue and expenditure of the company.3.Plan for future growth:Budgeting process helps a company to predict the future growth of the company in abetter and proper way. Further, it has been analysed that budgeting helps thecompany to manage all the business functions and the process in a proper manner toanalyse and examine the future of the company and manage over the revenue andexpenditure of the company.4.Creates financial roadmap:It helps the company to create the roadmap of finance, so that a good decision couldbe made. Further, it has been analysed that budgeting helps the company to manageall the business functions and the process in a proper manner to analyse and examinethe future of the company and manage over the revenue and expenditure of thecompany (Garrison et al, 2010).5.Considerations:Budgeting process helps takes the consideration of various process to manage thefunctions and the activities of the company.V2017.T4. 1.0FNS50215 Diploma of Accounting/ FNSACC507/ 2017/ T4/ / Online Learning / WK 3Page2of4
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