Financial Organizational budgeting is uses by staff and organization board for planning future income and expenses. Organization staff prepares the budget and the board reviews before serving as a guide for future financial activities. It is a budget that
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Financial Organizational budgeting is uses by staff and organization board for planning future income and expenses. Organization staff prepares the budget and the board reviews before serving as a guide for future financial activities. It is a budget that should not set in stone because possible changes to future financial position, which requires periodical reviewing and applying amendment if necessary (“Budgeting For Nonprofits”,).
Discuss the benefits that may be achieved by creating a business budget.
Structured planning is essential to business growth and includes all areas such as profits, competitors, cash flow. By creating a business budget an organization is able to use the budget as a guide to assessing current and future financial health.
Business budgets are needed for increasing marketing, cutting expense, equipment purchase, staff hiring, and other improvements to business performance (“Business Budget Definition and Example”,).
Discuss the likely organizational problems that may arise from not creating a business budget.
By not creating a business budget an organization will face problems that involves not being able to obtain business loans or equity funding from financial institutions or investors. (“Business Budget Definition and Example”,).
Budgeting and business planning (). Retrieved from https://www.infoentrepreneurs.org/en/guides/budget…
Budgeting for Nonprofits (). Retrieved from http://councilofnonprofits.org
Business Budget Definition and Example (). Retrieved from http://thebalancesmb.com