Let us say that you finished your budget but after it is finalized, one or two expenses had to be changed., would it be easy for you to adjust the other expenses to accommodate the change on the other expenses(s) that changed? If so, how would you determine which expenses to change? Or, would you find it easier to increase you revenue to cover the change (increase) in the expenses? If so, how would you increase your revenue and what type of revenue would you be resorting to?
Change is an inevitable part of business. In order to meet the needs of a dynamic environment, carefully structured alterations to planned budgets may be needed. These changes will require thorough investigations to avoid future shortfalls. If consideration is given to redirecting funds from one department or area to another, the ethical parameters connected with such a move are considered.
During the planning process goals were set based on identified priorities to best serve the public. The projected amount of expenditures is matched with avenues to generate the necessary revenue. A crucial part of the budgeting process it is to include a margin of error, allowing for sudden increases or unexpected shortfall. Generally, this is held in a tentative position until needed or carried into the next budget year.
However, during difficult ...
This solution with over 500 words looks at institutional budgeting as an ongoing process that requires constant re-evaluation to meet organization needs. It looks at inside and outside challenges that can detriment a carefully planned budget.