Budgeting and the Fundamental Concepts in Managing a Business

A detailed Summary of Budgeting and the Fundamental Concepts in Managing a Business


Budgeting is one of the fundamental concepts in managing a business and it is often up to the budgeting policies that the managers decides upon that will conclude where the company is going to make it in the industry or not. The budgeting policy a company decides upon will show the top management team where the money is being spent and, even more importantly, it will show the team prior to the spending actually occurring.

If we refer to the four management functions (organizing, planning, directing and controlling), budgeting covers all four of them. Indeed, a responsible manager will be able to apply all four functions in what the budgeting policy is concerned.

First of all, the top management will need to determine what the company's budget for the future period of time will be. This will need to take i


Second of all, the top management team needs to organize the portfolio of projects and the investments it wants to develop in the subsequent period of time. Organizing the portfolio of projects also refers to determining (1) which projects of the portfolio will be done and (2) with what priority. Before the actual spending and investing begins, the company needs to have a organized set of future spending steps.

A healthy budgeting strategy will lead to a healthy financial situation of the company and a solid development strategy for the future. Budgeting should be where every company strategy should begin.

nto consideration both the company's possible revenues during this time and the expansion strategy that the team has decided upon. It may be the case that the management team has designed an expansion

Some common words found in the essay are:
, budgeting policies, top management, controlling function, management team, top management team, healthy financial, costs period, projects' costs, portfolio projects, budgeting policy,

Approximate Word count = 549
Approximate Pages = 2 (250 words per page double spaced)

Category: Miscellaneous

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