Approaches to BudgetingEssay Preview: Approaches to BudgetingReport this essayTraditional approach to budgeting and budgetary control:The traditional approach to budgeting and budgetary controls includes the process of developing a plan in advance for the factors that may influence the budget of the next year. Budgets usually include the incomes and expenditures and the capital yet to be utilized. Traditionally the budgets regarding any segment of an organization such as any department or sales or division or for the entire organization was approved before the beginning of the budget year. Moreover budgetary controls makes regular comparisons of budget and actual performance and on the basis of comparisons actions are taken to correct any differences where necessary (Hofstede, 1968).
There are many organizations using traditional budgeting, which provide them with the forecast of the budget for the up coming year and that does not change during the budget cycle. Companies find traditional budgeting easy with simpler coordination of budget assumptions for different department. However with passage of time and changes occurring in business world, companies complain that the traditional budgeting is not coping up with their needs the major criticism on traditional budgeting is due to:
Inappropriate measure they are either very simple or very complex.Not flexible with changing business situations.The budget is incorrectly timed either too short or too long.Traditional budget is considered very political.In order to avoid the above inconveniences the organizations are adopting alternative approaches of budgeting. Similarly for the business that businesses operates in a very stable and static market place, where there is little change in either products or demand year on year, and the other that business operates in a very dynamic, rapidly changing, innovative environment I would suggest that the businesses should adopt the alternative approaches of the budgeting (Neely etal.,2003).
Alternate Approaches to Budgeting:The key point to any of the budgeting approaches is that budget is the main management tool with which the managers can assess whether the business is going in the right direction or there is need of any adjustments. As budgets take in to consideration the conditions of market such as margin pressure, macroeconomic factors such change in tax rate along with external budget takes into account the internal factors of the organization such as allocation of resources. With passage of time and changing business conditions any business whether in a dynamic innovative environment or in stable market place should bring changes in the approaches to budget and budgetary controls as well encompass other changes to be updated and cope up with the needs of new business
The Budgeting Project – The second half of the year 2010: The budgeting goals and projections for budgets that were prepared in 2014. The new budgeting strategy has been designed in three ways: (a) a gradual-motion update, (b) a systematic analysis, and (c) a revised focus of spending and tax rates on the current time period.
The Budgeting Project – Budget priorities and projections for the year 2010. In the initial phase of the budgeting effort there is increasing emphasis on changing the budgeting strategy from business-cycle perspective with the intent to identify a period of sustainable growth, to a new approach for identifying effective budgeting strategies for the budget to improve the quality of living in an economic boom time environment.
The 2013 Budget: The 2013 Budget: The 2013 Budget. The 2013 Budget is designed to be an effort to re-engage stakeholders and to address emerging problems and challenges in a more effective way for the private sector while at the same time bringing the level of transparency, transparency in the funding models, and accountability to the system. It also aims to create a framework for the development of appropriate budgeting approaches which will ensure the public, stakeholders, and business are not blinders in making choices and taking action to meet their budgetary priorities and plans for the future.
The Budget 2014: Budget 2014: The 2014 Budget. The Budget is a public document which is the most comprehensive and transparent and important data for all stakeholders. It outlines the best ways governments can effectively use the government budget and the best way they can implement actionable action.
The 2015 Budget: The 2015 Budget: The 2015 Budget. The 2015 Budget is the culmination of years of deliberation, work, and analysis from the Office for Budget Responsibility, with many people making up their own minds about how to implement the budget. The 2015 Budget is intended to provide guidance on how and how to proceed with changes to the fiscal management and the way the Budget will be used in the future by the private sector.
The 2015 Budget Strategy: The 2015 Budget Strategy: The 2015 Budget. This is an objective list by which governments must consider whether fiscal management is the right way or not. The 2015 Budget does not offer a full list as to what the criteria were, how to implement this, or how to provide a detailed account of every change in policy and direction the government will undertake.
The 2015 Budget for 2016
The 2015 Budget for 2016
In 2014: the budgeted fiscal forecast for the fiscal year 2015 was:
· Budget budget for the fiscal year 2016 at the latest.
– If changes to policy and directions are not implemented.
– If changes in policy direction are not implemented. (b) Fiscal year 2015 revised to be in surplus.
· Budget Budget for Fiscal Year 2016 revised to be in surplus.
As mentioned above, in the final stages of the Budget the Government then needs to take action to address issues of fiscal direction and take action to address the current financial situation. To reduce budget deficit or balance the budget, or to balance the budget before December 2015, the Government needs to act on fiscal directives being issued by a national authority to the Government.
The 2016 Budget: