Assessment of financial source
The assessment of my financial budgetary planning was crucial in the first place in the process of making the budget for the last quarter of the year. As with most of the student in the universities and colleges, I only had limited sources of income. In the case of financial assessment, I began by identifying all the possible areas from where I can get personal funds. At first, I could thought of the contributions that I can make on my own for which I found my constrained such that I had no income source that could form personal financial contribution of income. I was therefore to think of external financial sources for which I made some evaluation of parental contributions. There I believe I had a certain level of confidence of gaining a substantial amount as support towards my education. Although there were other numerous ways through I could earn finances from the parents such as being awarded a certain amounts of money during my birthday party, I was not sure of the receipt of such amounts. The low level of reliability of such funds emanated from the fact that each individuals of attending birthday parties have the liberty of making choice of the prizes to give, which means they may present prizes of other varieties other than prizes in form of money. Furthermore, I did not forget of the financial support extended to the students by the university management as well as the student organization in form of loans and bursaries. However, considering the application protocols and the minimum qualifications, I found it was not possible to qualify in all of them. The budgetary goals were then set to ensure that the most pressing and inevitable items or requirements would be met and bolster savings. This was enhanced by creating a budget plan where the income and the expenditure of the budget were both identified as estimates with the elimination of those item which appeared to unnecessary to avoided expanded budget. The balancing of the incomes and the expenses was the last step but the most crucial as it showed of the feasibility of the implementation of the budget.
Economic and socio-political significance of budgeting in modern business organization
In the today’s world, budgeting of any given organization in the modern society is being given a new face. A lot of the changes have been taking place in the recent and budgeting a lot of political, social and economic factors have been fields of heated debates than in any other time of the past generations.
Budgeting of any organizations has got several economic impacts on a country or state. First and foremost, budget reflects or forecast of the amounted of income an organizations is expected to generated within a given time period. The financial forecast may act as an account that would shows the amount of product the organization would trade within the particular period of time. The generation of an expanded income sources depicts the stability of the organization to continue its operations without financial constrained. The interpretation of this is augmented trade which implies creation of stiff competition environment in the particular business industry (Abernethy and Brownell,1999, 256)
Budgeting incorporates a detailed analysis of the organization expenditures. Within the canon of the expenses, the company includes data and information on the company’s spending on various investments. The completion of the company’s anticipated projects contributes to the increment of the company’s production. This subsequently leads to the increasing the overall national productivity. The increase in national productivity has close relation in the augmentation of the trade which contributes to the growth of the nation’s economy. Budgeting put into consideration a number of factors based on the budget goals. As result of keen and critical selection of the projects to be developed within the covered budgetary period, the helps in the elimination of making investments in projects which are likely to be abandoned before their completion due to the demand of extra heavy financial which is may be beyond the organization’s financial capability (Brownell, 2005, 48)
Moreover, budgeting is also a significant means through which an organization can assess and plan its spending. The planning of how the organizations would spend its generated revenue perhaps acts as a strategy through which organization can avoid the development of bad debts which may arise from squandering revenue acquired in form of long-term loans. Prudent investment in viable businesses makes it possible for a company to have future stable source of revenue, and this helps the company to avoid borrowing of loans with high interest rates that burden the company during the repayment as they act as additional costs the company.
The budgeting has been an important process in the lives of many individuals of national. In the last two or three decades, organizations have realized that their growth and development not depends sole on capital investments whereby they have to make plant and machine investments, but they are now investing directly to the communities and societies in the surrounding environment. Some of the organizations have now taken active participations in the community development projects which include offering essential scarce product or service to the community. Such projects comprises of water distribution, construction of health care centers among other. There are some of those organizations in which their budgeting would incorporate other activities like environmental conservations while other would be take part in sponsoring sport and games. The overall results of all these projects that are initiated by the organizations are not solely aimed at helping the society of their necessities and needs but they would be a form of political campaign for the use of their products.