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Importance Of Good Budgetary Practices In The Formulation Of Organizational Strategies Essay

¶ … Efficiency, and Balance Budgeting Budget process allows public administrators to improve the efficiency and effectiveness of their projects. It provides them with result-orientated practices when managing the projects. This allows them to remain focused on the goals of the project and develop alternative strategies for addressing factors that might impede the success of the project. It also provides them with the desired flexibility to ensure the success of the project. This includes flexibility in the devolution of the fiscal and functional responsibilities in ensuring effective coordination in the use of the allocated resources.

The budgeting process is also important because it provides administrators with methods used in strengthening the competitive pressures influencing the success of the project. It entails the adoption of processes like privatization and accommodating competitive processes affecting the performance of the project. Besides, the budget process can support the realization of the organization's strategic planning efforts. Strategic planning provides the direction of the program while the budget process provides resources for implementing the plan. The budget process links the strategic plan to the fiscal reality. Strategic planning and budget process are interactive.

The budget process influences what can be achieved by executing the developed plan. It permits the assessment of trends, strategic issues, and demand factors likely to affect the performance of the project. The process of achieving a balance between planning, management, and control orientations determines the effectiveness and efficiency of the project. It ensures timely management of potential risks that are likely to affect the budget adversely. The control also allows minimization of the opportunities that are likely to predispose the project to unintentional errors and early discovery of the errors that might hinder the process. Managers consider the potential benefits associated with the control and the possible impacts associated with failure to implement the control before establishing a control among the above factors. Therefore, achieving this balance will program efficiency and effectiveness (Schick & LoStracco, 2000).

PP520 UNIT 3...

A budgeter takes the responsibility of preparing plans relating to resource allocation for the project. The budgeter determines the amount of financial support required by a project, thereby preventing mismanagement of the allocated resources. The budgeter works in collaboration with other members of the project in assessing, planning, monitoring and evaluating the success of the project. This helps in ensuring inclusion and transparency on issues related to the use of the allocated resources. In addition, the budgeter correlates the appropriations for some programs, including the items required for responding to project emergencies.
The budgeting officer also coordinates and directs the activities of the personnel involved in the formulation, monitoring, and presentation of the budget required for controlling and implementing the program. The success of the organization/project relies on the coordination of the inputs required for administration and operation of the plan of the project. The budgeter plays this role alongside preparing the budget showing the overall expenditure of the project. In addition, the budgeter manages and analyzes the transactions the project management undertakes. This includes purchasing the essential requirements of the project and paying the coordinators of the project.

In a relationship with the budgetary requirements, the budgeter analyzes the overall expenditure and requirements of the key institutions involved in ensuring the success of a project or an organization. In addition, the budgeter takes responsibility for providing training opportunities for the other accounting staff, work scheduling, transfers and performance ratings. This ensures promotion of personal and professional development of the other staff. Other functions of the budgeter that ensure success of a project or an organization include reviewing the operational budgets of the project and preparing a comparative analysis of the operating programs to determine their effectiveness (Le & Werner, 2001).

PP520 UNIT 4 SEMINAR

Budget decisions and budget cycles are related. Budgetary cycle allows project planners to absorb and respond…

Sources used in this document:
References

Besley, S., & Brigham, E.F. (2011). Principles of finance. Mason, Ohio: South-Western.

Herman, B. (2001). Financing for development: Proposals from business and civil society. Tokyo [u.a.: United Nations Univ. Press.

Le, R.S.F., & Werner, J. (2001). Principles of financial economics. Cambridge: Cambridge Univ. Press.

Schick, A., & LoStracco, F. (2000). The federal budget: Politics, policy, process. Washington, DC: Brookings Inst. Press.
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