In my organization, there are various duties assigned to the different employees depending on their professional skills. Being a relationship manager, I am mostly involved with the corporate banking services which include analyzing companies businesses and their financials to find their qualification for getting banking credit facilities. For this reason, I am not usually involved in the budget formulation team due to my other duties. Personnel with accounts experience have the biggest role in budget formulation. This is through their abilities to make the numerous components of a budget in an organization. Outlining my strength areas, I would like to be in the budget formulation team in order to utilize my skills to contribute to the organizations success. Some of the main ways in which accountants contributes towards a successful budget formulation includes business operation plan formulation, taxation calculation, and market research for new venturing. For this reason, it would be my pleasure to be involved in the process.
During the formulation of a budget, one of the most important documents is the organizations operations plan. Any organizations, which wish to make a complete and comprehensive budget, have an obligation to have a working operation plan. This plan entails of the cost of services and type of operation using and earning revenue for the organization (Johnston, Brignall, & Fitzgerald, 2002). This helps the managerial staff to consider activities, which earn as well as benefit the members of the public. In this, the objectives of an organization are met under very high standards would be my greatest wish to be part of the formulation team in order to use my skill and create a good operations plan. My ability in ac...
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...budget formulation process. Accountants are very important in this process so am I to our organization as they prepare operation plan documents and research for new project locations. On the other hand, I would also assist in taxation calculations. The three are very important budget components in any organization.
Works Cited
Birnberg, J. G. (2000). The role of behavioral research in management accounting education in the 21st century. Issues in Accounting Education, 15(4), 713-728. Retrieved from http://search.proquest.com/docview/210905900?accountid=38569
Johnston, R., Brignall, S., & Fitzgerald, L. (2002). The involvement of management accountants in operational process change: Results from field research. International Journal of Operations & Production Management, 22(12), 1325-1338. Retrieved from http://search.proquest.com/docview/232327109?accountid=38569
What is your role in development of the budget? What percentage of its development is at your discretion?
(Cronkhite, 2013) All organization requires specific planning and a clear understanding of the organization object. (McHatton, Bradshaw, Gallagher, & Reeves, 2011) With the budgeting which ensures that the funds necessary to carry out the organizational activities and once the budget is approve operational activities are conducted within the approved plan. (Cronkhite, 2013) The Capital budget contains large items since as location or a new building. (Cronkhite, 2013) This type of budgeting is done until the organization or project is complete. (Cronkhite, 2013) Line item budget is those items that are needed yearly in order to the organization to operate. (Cronkhite, 2013) This includes employee salaries all the way down to office basic stationery. (Cronkhite, 2013) The budgeting process is not something that is done once a year; it is a continual process of regular review and in some case possible for revision. (Cronkhite, 2013) In some case a zero based budgeting comes into play. This type of budgeting is also known as the “died of its own weight”. (Cronkhite, 2013) This is only done if there is a reduction in the organization by at 5%, 10% or 20% on how the essential programs would continue to function. (Cronkhite,
Top-down budgeting is the preferred method of budgeting for government agencies and many organizations (Ljungham). The methodology of top-down budgeting is described as “dominated by top members of the executive branch and the legislative branch” (Williams & Calabrese, 2011, 178). The methodology entrusts top members to make annual budgeting decisions for their organizations. In many instances, top members also use this time to set annual program or department goals and targets. Top members make these decisions without solicitation of input from bottom levels of an organization. This can result in operational and logistical constraints in the lower levels of an organization when plans are implemented (Williams & Calabrese, 2011). Additionally, it can serve as a source of frustration for staff when uninformed budgeting decisions create consequences. This is particularly true when staff is tasked with making things work in the aftermath of budgeting decisions, despite having clear or attainable goals and budgets. Like all budgeting methodologies, there are benefits and difficulties.
I believe that all of the budget categories are extremely important to the organization. First, I believe it would be best to start with the people because grooming someone’s skills and learning to benefit from someone’s talents may take a while. Additionally, we want the clients of our group to be the main focus and it is important for the community to change their mind about passing these wonderful people over. Supplies will always be important because no one can get through a meeting without pens or paper. Space will be vital because there must be a place to meet for our organization’s development. Later on I can see things like equipment and miscellaneous
The budget is a tool that quantifies activities in financial terms (Baker & Baker, 2014). Fiscal planning is an important activity in strategic planning. The nurse manger must have the knowledge and ability to forcast when developing a budget (Marquis & Huston, 2015). The manager must also take into consideration and plan for time resources. A GANTT chart or a program evaluation review technique can be utilized to assist in managing time resources (Laureate Education, 2013).
Provides advice, assistance, and guidance on budgeting and related information to program managers and budget-related personnel in subordinate organizations. Conducts analyses, reviews, and special studies of budget and/or related information.
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
The traditional budgeting core advantages are the control and performance management. Budgetary control oversees the progress of the organization as it set the standard by comparing to previous year actual figures. Negative variances force the organization to react and make changes before the problems increases. To related back to performance management, budgets set as an outline for operations and it supports manager’s decision-making process. Nonetheless, problem budgeted objectives tend to motivate members better when it is difficult to achieve but for planning wise, traditional budgeting gives the most well estimated for the next fiscal year. If objectives are easily assessable, it will serve as a motivational purpose. On the other hand, if the budgetary system is used as a basis for performance evaluation, it may lead to dysfunctional behavior where managers manipulated the figures to relieve the achievability of the objectives. Despite the criticism for traditional budgeting, most organization had turned to the use of budgeting alternatives. In this essay, zero-based budgeting system was taken into the discussion. Zero-based budgeting is an effective system to control overhead costs and resources. Zero-based budgeting lives up to its name by starting each budgeting cycle with zero. Although it is expensive and time-consuming, it helps to review each and every program meticulously as the
Jackson, S., Sawyers, R., & Jenkins, J. (2009). Managerial Accounting (5th ed.). Fort Worth, TX: Harcourt College Publishers.
Participative Budgeting is the situation in which budgets are designed and set after input from subordinate managers, instead of merely being imposed. The idea behind this sort of budgeting is to assign responsibility to subordinate managers and place a form of personal ownership on the final budget. Nearly two decades of management accounting research has resulted in equivocal findings on the consequences and effects of participative budgeting (Lindquist 1995). Participative budgeting certainly has various advantages, these include the transferral of information from subordinate to superior increased job satisfaction for the subordinate, budgetary responsibility and goal congruence. Its disadvantages include budgetary slack and negative motivation, however it is the conditions in which participative budgeting takes place determines whether the budgeting process is successful. The conditions are dependent on various factors such as the level of participation, level of subordinate influence, the extent to which budgetary slack takes place, volatility, job related information, and the complexity of the budget.
The eighth step is to get board approval for the budget plan. The budget should be approved by the board president or the organization’s head. The organization’s head should keep updated with the budget performance by reviewing the financial statement monthly. By reviewing it monthly, he or she can monitor the performance of the budget, to know all the expenditures, to protect the business against fund misappropriation or employee
A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.
Managerial Accounting addresses those aspects that relates to an individual organization return on investments (ROI). (Albrecht, Stice, Stice, & Skousen, 2002) A company’s profitability depends on periodic attention to its assets turnover and profit margin. This process is designed to support the decision making that adds value to an organization. Organizations are sometimes broad and divisional. Planning, controlling, and evaluating is key in the effective decision making process. (Albrecht, Stice, Stice, & Skousen, 2002) An organization must make decisions about its future products, services, operations, and investments. It must begin a tracking process for cost, quality, and performance. Finally it must analyze the results, and variances, providing feedback to assess areas of personnel, divisions, products, and processes. (Albrecht, Stice, Stice, & Skousen, 2002)
Accounting is one of the fastest growing fields in the United States It expands each time a new store, a factory, a filling station, or a school goes up, whether in a large city or a small town. In today's society, the demand for good accountants for exceeds the supply. As our country has expanded, business and industry have become more and more complex, so control here is very important. And control depends on a great deal of the bookkeepers and accountants who can analyze figues and advise management on what should be done. They are using more scientific ways changing money, figuring change, and collecting sales taxes. Moreover, department stores and other companies now have plants and offices widely scattered throughout the country. A new set of bookkeepers and accountants, is needed at each branch. I know there are many managements supervisory, and junior or senior executive positions are bing filled by people who started as accountants because accountants have the knowledge of methods and finance and comprehension of the fundamentals of business, and acc...
In Management, the accountant gives advices to the individuals and business people, how to manage their business. The account information is considered and some business decisions are taken in both financial and non-financial departments. Budgeting, tax filing, and financial statements. Other activities like involve in planning com...