Importance Of Budgeting In An Organization

Finance plays a role in the organization I work for in various ways. Accounting and budgeting affects organizations within the business and also allows management to use this financial information to create budgets, forecast incomes and expenditures. It is a tool for decision making and is a way to monitor business performance. These are crucial components to the financial aspect of the workplace and overall business activities. The organization I work at factors in budgets into every department in the business. A budget “is a financial document used to project future income and expenses. The budgeting process may be carried out by individuals or by companies to estimate whether the person/company can continue to operate with its projected

We source applicants using Indeed, LinkedIn, Facebook, Monster and a few other ways. Although some recruitment processes are free of cost, others are not. This is something we have to be mindful of while we are recruiting as we have a very small budget. This budget determines how many times we can post jobs in a week. This is incredibly useful as it keeps us in line when it comes to managing job posts and recruitment. If we had an unlimited budget, we would be able to pipeline incredible applicants and fill our positions in an expeditious manner. However, that would not meet business needs. The budget is also resourceful as it provides information about how much money is allotted each month. It also allows the department to plan for future

Moreover, the current assets are those that are cash or become cash within the next twelve months. There are also various assets such as the land, building, and machinery in the warehouse. We have fifteen locations and large machinery that are significant assets. On the other hand, we have a group of individuals who specialize in accounts receivable. This team of employees handles the amounts that are due from customers. For example, we are in the retail business. When a customer finances a couch, the accounts receivable team collects the amount owed from the customer in result of the sale. Liabilities can be seen in numerous ways. This would be considered borrowed capital, long-term liability, lease contracts, long-term debt, and loans from stockholders. Every time a new store is opened, we own it that day and do not have any lease contracts. The CEO takes pride in purchasing real estate with cash. In addition, the accounts payable team we have is considered a liability. Furthermore, equity can also be found in capital stock, contributed capital and retained