Budgeting and Financing the Organization, Essay Example

Agree Or Disagree: ‘I don’t need a budget; I run my own business so it’s all in my head. Bothering with a budget would just be a waste of time and money!’

I do not agree in this statement simply because of the fact that when it comes to dealing with money, planning and putting everything in clear plain presentations is a must. It could be understood that the same matter could be carried into account even in a personal scale of dealing with finances(Sullivan, et al, 2003). Relatively, budgeting approaches adapted into application by individuals helps a lot in making a definite impact on how monetary assets are used at their best; hence making a mark on how personal development is funded and other monetary problems are avoided. It could be understood that somehow, there could be instances by which the monetary resources are given less care by individuals in a personal scale hence making a distinct difference on how financial resources are set aside which makes problems even harder to deal with especially when it comes to emergencies (Betezin, 2005).

Value of Budgeting for Organizations of all Sizes and Types in Terms of Effective Resource Management:

Businesses run in personal scale highly require being based upon a well-defined financial program that basically considers the ways by which monetary resources are used effectively especially when it comes to balancing out the expenses with the profits. I personally think that proper resources management [especially in terms of financial factors used for the organization’s development] helps a lot in keeping a practical pattern of operation that would best provide the organization with the edge needed in order for the whole business to move forward in a smooth manner (Betezin, 2005). It might seem to require too much work at first; nevertheless, being well-adapted to the system basically increases the competence of the business to operate fully especially when it comes to determining a more competent process of using finances in order to operate in a full sense of development.

Organizations, whether small or large scale would benefit well from a solid financial program that would best create a more defined categorization of how expenses are incurred and how they are being returned through properly defined profiting operations. Accordingly, it could be understood that when it comes to dealing with finances, properly categorizing factors of monetary utilization is an important aspect of safe money management (Sullivan, et al, 2003). This way, business owners would be able to seek proper procedures by which they would be able to use their assets accordingly especially when particular developments are being planned for. Practical options of expansion could also be considered accordingly [especially when monetary assets are properly given attention to].

Characteristics of a Successful Budgeting System:

The application of proper financial management could also reduce the existence of particular problems that could actually put the organization in a tumultuous position. Relatively, it could be understood that the capacity of an organization to push through for the development it hopes to embrace would actually depend on how particularly demanding expansions could be carried on through with the proper assumption of improvement; alongside the reconstruction of good financial foundation to which the said expansions are going to depend upon (Sullivan, et al, 2003). Noticeably, it could be noted that it is only through the application of good financial management procedures and strategies that any type of business would be able to take on the financial challenges that makes a great impact on how an organization operates accordingly.

Lack of Such Characteristics Resulting in Ethical Problems:

Overall, utilizing a proper budget-planning strategy would help well in determining a more practical process by which personal or organizational finances are to be directed accordingly (Krugman, 2006). From the existence of this particular system, individuals and business organizations would actually be able to survive financial stresses while still providing a much stronger foundation for extensive expansion. This will allow individuals and organizations to avoid dealing with unnecessary ethical anomalies simply because of mismanaging the financial resources they have under their care and name.

Works Cited

Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 502.

Berezin, M. (2005). “Emotions and the Economy” in Smelser, N.J. and R. Swedberg (eds.) The Handbook of Economic Sociology, Second Edition. Princeton University Press: Princeton, NJ.

Krugman, Paul & Wells, Robin. (2006).  Economics, Worth Publishers, New York.