response to peers – coursefighter.com
Business Finance – coursefighter.com
Make sure the response is at least 200 hundred words or more and please cite.
Respond to Erica’s response1
Budgeting is a vital component in the financial flow of business and personal expenses. Budgeting also assist in controlling the flow of finances through restricting and implementing a financial strategy on behalf of the organizational. Perhaps the objective to budgeting is to maintain the control of the flow of finances and information that assist in making financially sound decisions fit for the organization short and long-term. Budgeting is also direct link to controlling inputs and outputs pertaining to the organization for budgeting discipline (Smith & Bempah, 2017).
Budgeting is an important strategy used that helps fulfill the objective in controlling inputs and output, that assist management and upper level executives, and HR in making financial decisions, prepare financial statements, make accurate judgements pertaining to budgets, and saving money (Edmonds, Tsay &Olds, 2011). Never the less managers are placed in positions to promote strategies that are bring about effective processes that promote the organizations objective in budgeting to keep the organization thriving (Jungmin, Dongwon, & Hom, 2017).
Budget are also constraining and can be very uncomfortable. Freedom is limited in favor of an established plan fit for the organization. Budgeting promotes planning and coordination, while also enhancing the performance measures outlined and the corrective action to be taken (Edmonds, Tsay &Olds, 2011). Therefore, management roles are vital in implementation on behalf of the organization and their participation in the process ensures many positive outcomes for the organization. “Attitudes of high level managers significantly impact budget effectiveness” (Edmonds, Tsay &Olds, 2011). Therefore, it is imperative that managers remain calm and demonstrate compassion to maintain effective positive human behavior in matter of budgeting expectations.
Respond to Tiffany’s response2
Budgeting is something I do daily for my personal usage and it is important for businesses as well. Whether personal or associated with business, a business plan is strategically put together to enable one to reach a goal; it contains an action plan (Jordan, Yusuf, and Hooshmand, 2017). Budgeting requires a concept called strategic planning, strategic planning consists of an action plan that will enable one to reach their goals (Edmonds, Tsay, and Olds, 2011). Budgeting involves many components such as capital or operations type budgeting. Capital budgeting focuses on budgeting that is detailed in making decisions, this type of budgeting is immediate.
Budgeting has a huge impact on human behavior, as it displays the discipline of a person or an organization. In a business setting, budgeting requires the agreement amongst everyone. Once upper management has a goal in mind, it should be communicated to the employees so that everyone is on one accord ( Shaw, 2016). Budgets and human behavior have a tendency to display the seriousness of the budget. Let’s say for example if the budget is presented to the board in a serious matter with information that strategically aligns with the reasoning for the budget, then chances are the business will be successful. If management presents a budget jokingly, then the board will not take the matter seriously which would result in budget failure. It is always good to focus on the human behavior of budgeting and how one reacts when presented such data. It is important to implement participative budgeting as being inclusive and getting the opinion and ideas of someone other than upper management can contain valuable pertinent information that could be valuable in the decision making process.