Accounting Budgeting

In: Business and Management

Submitted By simmoune
Words 871
Pages 4
I agree with the statement “ Management of any business will be ineffective without the preparation and use of budgets”. Basically budgeting is the process of planning to spend money. With budgeting it would be easier to prioritize our spending and focusing our money. I agree with the statement because based on the research conducted it says that budgeting can ensure that we will always have enough money for the things that we need. In one of the website that I found stated that budgeting is only balancing the income and expenses. There would be problems if the expenses and the income is not balance, such as your expenses will be bigger than your income and it would bring a big impact for the savings.
Since budgeting is very important, we wont be easily got broke. However the budgeting plan will work out if only you follow the spending plan. It would be very useless if u don’t follow the spending plan that you make to manage your money. All the people that can earn their money by themselves will use budgeting so that they can prevent from excessive spending. Budgeting will also gives you information which things you should prioritize, like food and house living costs first. Don’t you think it is good if you can keep your finance on track ? Don’t you think it is really useful if you have emergency saving money? So budgeting is a planning and controlling tool, in businesses the masters of budget has to know how to use revenue and expenses and also they have to look back to the past to analysis the income and the outcome. With that the masters can plan the budgeting for the present time. In businesses budget is also used in purpose of controlling. The word controlling here means to not overspend and carefully use the money for expenditures. Of course there are advantages and also disadvantages of budgeting
Here are some advantages of budgeting: 1. With budgeting…...

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