Budgeting Essay -- Finances Accounting Budgets Essays

Budgeting Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an governings strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the procession towards the goals, assist in the control of spending, and help predict cash tend for the organization.The central challenge that budget developers encounter is predicting what the future holds for the internal communication channel and external factors. Reading the future is more or lessthing that bed never be through with perfect precision. The fast pace of technological change, the complexities of global competition and creation events make developing effective budgets both more than difficult and more important. Important benefits of improving the budgeting process include better companywide understanding of strategic goals, more coordinated support for those goals, and an improved ability to respond apace to competition. (Gruner & Jahr, 2003 I nc Magazine).Anyone familiar with Generally Accepted invoice Principles (GAAP) and practices will find close to accounting for nonprofit activity to be very familiar. There are, however, some significant fights, which include Accounting for Contributions Capitalizing and Depreciating Assets Use of Cash- and Modified Cash-Basis Accounting Functional Expense ClassificationThe act of budgeting resources to meet or impulse the goals of an organization is an art form in any type of business. all business should prepare budgets, (Hansen and Mowen, p. 282). The advantage to budgeting is that1. It forces to plan.2. It provides information that can be utilise to improve decision making.3. It provides a standard for performance evaluation.4. It improves communication and coordination.If best budgeting is important for all successful business or organization, can we judge to have industry standard and general practices that are followed in every type of organization? Probable not, but certain standard can be expected, which is the direction of this term paper.Are there a difference or should there be a difference in the elan a for-profit and a not-for-profit conduct their budgeting procedures. In both cases, they have income and expenses, employees and goals and objectives of the organization. The shot is that there is no difference in the bu... ..., a wide transmutation of popular accounting software systems are available that have been knowing to satisfy these needs. If the nonprofit organization uses an adequate accounting system, sets up its categories and classifications in line with the IRS reporting requirements, and assiduously labels all revenue and expenses appropriately, then complemental the IRS annual report is a relatively painless matter.ReferencesBangs Jr, David H and Pellecchia, Michael, sumptuous 15, 2000, Action Plan Forecasting and Cash-Flow Budgeting retrieved from web site http//www.muridae.com/ nporeg ulation/accounting.html on February 27, 2003. diminutive Issues in Financial Accounting Regulation for Nonprofit Organizations, Online Compendium of national and State Regulations for U.S. Nonprofit Organizations, retrieved from web site http//www.muridae.com/nporegulation/main.html on February 28, 2003Gruner + Jahr, January 12, 2000, Best Practices growing Budgets, Inc Magazine, USA Publishing. Inc.com, retrieved from web site http//www.inc.com/articles/ finance/fin_manage/budget/16379.html on February 27th, 2003Hansen & Mowen, focussing Accounting, 6th edition, 2003, South Western