Scrutinizing Of Budget By Management
Posted by Steven in middle management, Operational Budget, Scrutinizing Of Budget, strategic, upper management
A budget is not a budget until it has been scrutinized by the management. Even if the numbers add up correctly, they may not have been estimated properly. Its middle manag
ement’s job to assemble the budget, but it’s the upper management’s job to question the budget. They do this because the budget is the financial loss that will guide the organization in the coming year. Not only does it not need to be accurate, it needs to be well considered and realistic. The management can question in the following way after the budget has been submitted for seeking the approval from the senior management. The following are the things that a budgeting authority must least know before preparing the budget, A budget is the plan which operates the financial side of the business, It can be either operational or strategic in nature, A company’s goal must be identified before creating a budget, Budgets vary, but all consists of revenue and expense items, Costs may be fixed, variable or semi variable and the budgeting process is in complete if the management doesn’t scrutinize and question the budget
ement’s job to assemble the budget, but it’s the upper management’s job to question the budget. They do this because the budget is the financial loss that will guide the organization in the coming year. Not only does it not need to be accurate, it needs to be well considered and realistic. The management can question in the following way after the budget has been submitted for seeking the approval from the senior management. The following are the things that a budgeting authority must least know before preparing the budget, A budget is the plan which operates the financial side of the business, It can be either operational or strategic in nature, A company’s goal must be identified before creating a budget, Budgets vary, but all consists of revenue and expense items, Costs may be fixed, variable or semi variable and the budgeting process is in complete if the management doesn’t scrutinize and question the budget
