BUDGETING Coursework Example | Topics and Well Written Essays - 750 words

BUDGETING - Coursework ExampleBusiness planning, universe cardinal of the internal processes, can be made more successful if the military control prevents each implications and problems in its projects and practices its being planning about. Budgeting patrons these processes in the virtually effective way by managing the cash flow and helps you to decide when to garment in which project you have planned at the right time which will produce the shell results. All during the assembly line planning, a budget plans helps to control the cash in hand, gives you assurance whether you can fulfill your ongoing commitments or not, helps you to decide the scoop financial decision which fulfills your objectives and last but not the least, it helps to plan and gives you estimation regarding the notes you can spend on your future expansionary plans. Budgeting should not be mixed with the forecasting because unlike a forecast, budgeting is a planned outcome which the business thrives to get to its achievement (Peterson and Fabozzi, 2002). When it comes to business planning, it also includes one of the most technical business tasks which is decision making. Budgeting improves this decision making process because it gives you a clear cut view that which plan is practical and which can be fulfilled with the finance in hand. With the help of effective budgeting skill, a business can never run out of cash or even some issues argon detected in cash flow, they can be easily found out and fixed forward time. This clearly gives a deep understanding about the relationship between budgeting and business planning (Peterson and Fabozzi, 2002). These ii benefits the business if done effectively and efficiently together. Budgeting being the provider of control and accountability over the finances and revenues of the business, aid business planning and make it successful. The reasons behind a planning are fulfilled with the help of making a budget but it never helps the most w hen it comes to business control. This is an entirely different affaire and cannot be related with budgeting. The above explanation illustrates how budgeting can be a great help in planning and its actually doesnt play any vital role in business control. With the help of Capital budgeting, evaluation of investment proposals can be done easily in the best possible way. Such type of budgeting actually helps a business to decide which proposal should be stratified first so that it can be undertaken and investment can be made on it. For any investment, a business needs a proper financial plan because it will be businesss finances and cap returns which will be invested and benefits in the future will be gained and as budgeting is a part of financial planning, so without it, an investment proposal cannot be evaluated (Wildavsky, 1996). When it comes to evaluation, the first thing to do is to come up with all the possible strengths and weaknesses of a specific proposal, and when it come s to investment, business has to be really wide-awake and should dream of only fulfilling those proposals which can be undertaken and comes in the boundary of businesss finances. In capital budgeting, the speed of evaluation process gets geared up as by using this method those proposals are top ranked which include no real choice for example replacing a leaking toilet line with an updated one, as this one will remove any