QUALITIES OF GOOD BUDGET

This document will get you understanding of best qualities of good budget within in an organization.

Department managers in a business make decisions every day that affect the profitability of the business. In order to make effective decisions and coordinate the decisions and actions of the various departments, a business needs to have a plan for its operations. Planning the financial operations of a business is called budgeting.

• Responsibility

To prepare the budget one should be the responsible an dwell defined authority.

• Comprehensiveness

Budget should show the entire financial position of the organization in board details.

• Flexibility

A good budget should have certain flexibility so its implementations can be made easy.

• Reliability

The information of budget which estimates should be reliable as much as possible.

• Integrity

A good budget should involve the assurance that the fiscal program as enacted and as intended. Budget is plan prepared for individual capital expenditure projects.

• Coordination

Different units in the company must also coordinate the many different tasks they perform

• Control

Once a budget is finalized, it is the plan for the operations of the organization. Managers have authority to spend within the budget and responsibility to achieve revenues specified within the budget.