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  • Staff

    Module 1: The Purpose of Budgeting

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

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  • Good morning my name is kalada peterside from nigeria, a consultant

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Good morning.
    I'm Deborah from Nigeria.

    A standardized budgeting system promotes efficiency in an organisation and saves time.
    This is because the organisation has a budget format which it can use and modify when necessary.

    It also helps an organisation determine and communicate its financial needs accurately, thus promoting clarity: all necessary
    stakeholders are aware of what is needed.

    K
    S
    2 Replies
  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    The system adopted by Dr Gourh covers and distributes all expenses incurred evenly to each project. It will be more efficient, if the cost allocation is accounted by activity based. For example, if an employee consums 60% of his work hours on project A, 30% on project B and the remaining 10% on C, then the cost-allocation should be distributed as a ratio of the activity done. Similar the other Overhead expenses can also be allocated to different projects according to the level of their utilitybin those projects. By this the, the total worth and financial requirements of a particular project can be easily identified and the allocation of funds will be more rational.

    I'm Millat Khan Afridi from Islamabad, Pakistan. I'm a student of Master of Commerce (Finance).

    P
    1 Reply
  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?
    As budgeting process is allocation of available resources to the future needs and requirements of a project, it has following benefits.
    1- In case of cash budgeting- estimation of cash inflows and outflows.
    2- arrangement and management of the needed resources.
    3- Establishing goals and Decision-making based on information provided by Budgets.
    4- planing and executing organizational activities
    6- monitoring and controlling
    7- Auditing
    And the list goes on...

    U
    1 Reply
  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    The design stated is to give appropriate and authentic account of all expenses and further strengthen the credibility and continuance of all operations of the different departments or units in the organisation thereby enhancing a productive and profit- oriented non-profit organisation.

    N
    1 Reply
  • Good morning. My name is John Muhangyi. I havent created a budgeting system for an organisation that's why this course becomes essential to gain skills of budgeting so that I am capable to planning income and expenses accordingly.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    I am Lysias MYLANDOU fron Congo (Brazzaville). I think to have a standardized system is importat to guarantee the administration continuation. It is very difficult to lose organization dynamic because of the lack of system after the retrait of some professionals. I notice the importance to centralize the budget. It avoids the organization to sur estimate the different projects costs. In my social organization, we have not the budget system. It is the reason I am following this course to be informed and able to initiate the budget system.

  • Why would it be valuable to have a standardized system for creating budgets?

    A good and well planned budget contains the overall expenses an organization is going to guide it's financial programs by. And this gives the organization clarity on what to spend on,the amount and the importance of what these expenses are to the effective fictionalization of the organization.

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    1 Reply
  • I believe that a well-planned budget helps in an efficient execution of the financial aspect of the organisation. It helps in comparing actual results with budgeted figures and identify the real reason for variances, if any. It also helps to improve on the Value for Money of the operations.

  • @helloyomiii said in Module 1: The Purpose of Budgeting:

    Why would it be valuable to have a standardized system for creating budgets?

    A good and well planned budget contains the overall expenses an organization is going to guide it's financial programs by. And this gives the organization clarity on what to spend on,the amount and the importance of what these expenses are to the effective fictionalization of the organization.

    Very rightly said.

  • @afridimillat said in Module 1: The Purpose of Budgeting:

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?
    As budgeting process is allocation of available resources to the future needs and requirements of a project, it has following benefits.
    1- In case of cash budgeting- estimation of cash inflows and outflows.
    2- arrangement and management of the needed resources.
    3- Establishing goals and Decision-making based on information provided by Budgets.
    4- planing and executing organizational activities
    6- monitoring and controlling
    7- Auditing
    And the list goes on...

    @afridimillat said in Module 1: The Purpose of Budgeting:

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?
    As budgeting process is allocation of available resources to the future needs and requirements of a project, it has following benefits.
    1- In case of cash budgeting- estimation of cash inflows and outflows.
    2- arrangement and management of the needed resources.
    3- Establishing goals and Decision-making based on information provided by Budgets.
    4- planing and executing organizational activities
    6- monitoring and controlling
    7- Auditing
    And the list goes on...

    100% spot on.

  •                                       **PURPOSE OF BUDGETING**
    
    1. STRUCTURE
      It gives structure and substance to plans, you know your intentions and how to go about it.

    2. It helps us set specific goals so that we can measure achievements and performances.

    3)Helps us to understand the organization's programs and how well we are able to perform

    1. Helps in planning and project implementation

    5)Helps in our reporting

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    creating a budget organization know that how to we achieve plan and what expense are occurred on this expense this standardized system effectively work and save time of the project.
    organization gain when the organization estimate all project cost then it will not lose all the project cost and run their project efficiently and successfully gain profit of the work.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Have accurate estimate of the budget
    Have feasbility study, as budget can be bigger than the organisation can allow
    Study more possibilities according to budget

  • @afridimillat said in Module 1: The Purpose of Budgeting:

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    The system adopted by Dr Gourh covers and distributes all expenses incurred evenly to each project. It will be more efficient, if the cost allocation is accounted by activity based. For example, if an employee consums 60% of his work hours on project A, 30% on project B and the remaining 10% on C, then the cost-allocation should be distributed as a ratio of the activity done. Similar the other Overhead expenses can also be allocated to different projects according to the level of their utilitybin those projects. By this the, the total worth and financial requirements of a particular project can be easily identified and the allocation of funds will be more rational.

    I'm Millat Khan Afridi from Islamabad, Pakistan. I'm a student of Master of Commerce (Finance).

  • Creating a budget systems make budgeting within the organisation seamless and standardised. It provides the template for which staff of the organisation can interact with and own its ownership.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    My name is Safrat Muhammad, from Nigeria.
    There is need for a standardized system for budgeting in any organization. The benefits are numerous.
    I have not been opportuned to create a budget plan for any organization, and that's why I find this course very helpful and I lobe to learn..
    Some few importance of organizational budgeting include:

    1. It provides clarity I.e All financial expenses that will be run by the organization will be structured out and the funds adequately distributed to each sector or department.

    2. Where there is a set goal,It helps to achieve the goals/aim set by the staff or organization.

  • Good morning. My name is Ozohu Anne Otonoku from Nigeria.
    A standardized system will guide my organisation in what to spend and indicate where more funds is required. I also notice that cost shared will allow my organisation spend less because all expenses will be shared across projects.

  • Course Facilitator

    To have a standardized system of creating budget is important because of having a consistence on approach, procedures, process and policies for the purpose of meeting rules and regulations of undertaking a certain project or program provided there is repetitive tasks.
    Mostly the organization gain common standards of the budget

    • I think it is important to have a well defined process for budgeting in an organization as it ensures that all costs are accounted for and similar costs are not accounted for more than twice. A well defined process will also allow your organization to communicate well to your funders on the needs of the organization. When there is also a standardized way to budget within an organization i think it makes it more clear for an organization to see which areas a lot of money is being spent on and how they can cut costs in that area.
  • Good morning all! I am Joan from the United States, specifically South Carolina. I see the value of creating a purpose and plan to create a budget. In our busy lives, we often find ourselves (I don't think I speak for just myself here) hindered by tasks and deadlines with no time to plan. Being thoughtful and definitive at the start creates something we can live with.

  • @MondayEmmanuel4a86 said in Module 1: The Purpose of Budgeting:

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    The design stated is to give appropriate and authentic account of all expenses and further strengthen the credibility and continuance of all operations of the different departments or units in the organisation thereby enhancing a productive and profit- oriented non-profit organisation.

    I totally agree with you.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    I think a standardized budget saves time an improves efficient. The program team will be aware of budgets as they carry out the programs.It also makes reporting to other stakeholders and donors easily.

  • Yes ofcourse it is useful to have a well organized budget because immensely spending money will put oneself in a troble. So it is better to have a structured budget and 2% of buffer amount is also good to have that will help oneself to handle from financial crises.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:
    Why would it be valuable to have a standardized system for creating budgets?
    Having standardized system for creating budget will assist the organization come out with a budget that is all inclusive. The budget with will include all expenses from various departments and sub units as well as vendors and contractors engage in any project.
    In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?
    My organization will gain the benefit of developing a standardized budget for their expenses.
    Another benefit will be that of meeting the organization expenditure needs for their projects.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    when you have organized your budget plan , it is easier for you to make want you want and what you really need to do for your achievement and your goals for example if you what to make a house , you should be plan how much money it will you cost .

  • it help to avoid overspending as well as contribute to make expenses according to budget line items.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    having a well defined process for budgeting in my organization will make me more credible and make investors decision to invest my my organization more promising. In light of that this will assist in ensuring the sustainability of my organization for years to come.

  • Hi I am Menna from Egypt. I believe these three categories created to oversee and allocate funds efficiently would contribute to many other intersecting areas such as engaging stakeholders, accountability and higher-level planning because since the budget operatively clear it would be easier to track and allocate resources efficiently and thus keep a clear track of the project expected outcomes and longterm impact.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Hi I am Menna from Egypt. I believe these three categories created to oversee and allocate funds efficiently would contribute to many other intersecting areas such as engaging stakeholders, accountability and higher-level planning because since the budget operatively clear it would be easier to track and allocate resources efficiently and thus keep a clear track of the project expected outcomes and longterm impact.

  • Expenses that contribute to the functioning of the entire organization, but do not directly contribute to projects. For example: auditor expenses should be allocated to all projects equally. Rent, telephones, utilities, administrative expenses. Communication expenses at the organizational level.

  • The importance of systematic budget are:

    • To overcome the future contingent expenses from approved budget head from Donors
      -For maximum utilization of scarce resources (fund) where it is required the most.
      -To reduce gap between standard budget vs expenses sheet.
      -To show the donor about governance and internal control of budget of organization.

    The Benefit of Systematic budget are:
    -There will be no worry about the over expenses and approval from donor about expenses.
    -The organization image will not degrade in the view of donor.

    • The track record will be useful for future donor and partners/ auditors.
  • I am Yemi From Nigeria. i like the idea of the shared program budget which is something that can be used in my organisation that also has multiple programs

  • Budgeting is a key for developmental and lasting operations of an organization. From Dr. Gourh point of view, he is right in creating three key programs of establishing and managing the organization for sustenance. However, creation of standardized system for creating budgets will help tailor expenses in a rightful channel, manage costs of spending and help the organizations longevity. As an entrepreneur, managing my small business at first was challenging and led to wastage of capital and resources, but after critical thinking and assessment, a certain amount of money was set aside to import some devices; and its expected to make return of such amount or more. 2. second set of money was also set aside for sustenance of manpower, who did the marketing and sales of the devices accrued and not a dime was added to it as planned, third was the running cost of the earlier two amount been put aside for earlier business. On the long, after months of budgeting actions, the sum of two hundred thousand naira was left untouched and a profit was made in double fold compared to when a budget was not designed.

    1 Reply
  • Good morning all? My name is Jacques from the DRC. I have never personally created a budgeting system in my organization and I signed up for this training to get there soon. However in addition to the benefits described by Dr Gourh I find it extremely important to have an organizational budgeting system for efficient planning of the organization's expenses taking into account the envisaged revenues. No later than the end of last year my organization experienced a blockage of budget forecasts due to the annual leave of our accountant forcing us to work until now without annual budget because the lack of a standardized system of budgeting did not allow the intermediary or any of his collaborators to draw up a budget similar (format) to that of previous years. It is therefore essential to any organization in my opinion to have a standardized budgeting system.

    1 Reply
  • Course Facilitator

    My name is Japhet Aloyce Kalegeya, I am Tanzanian

  • Course Facilitator

    @jacquesmuzinga27 said in Module 1: The Purpose of Budgeting:

    Good morning all? My name is Jacques from the DRC. I have never personally created a budgeting system in my organization and I signed up for this training to get there soon. However in addition to the benefits described by Dr Gourh I find it extremely important to have an organizational budgeting system for efficient planning of the organization's expenses taking into account the envisaged revenues. No later than the end of last year my organization experienced a blockage of budget forecasts due to the annual leave of our accountant forcing us to work until now without annual budget because the lack of a standardized system of budgeting did not allow the intermediary or any of his collaborators to draw up a budget similar (format) to that of previous years. It is therefore essential to any organization in my opinion to have a standardized budgeting system.

    Good idea and post

  • Course Facilitator

    @RilwanBalogun said in Module 1: The Purpose of Budgeting:

    Budgeting is a key for developmental and lasting operations of an organization. From Dr. Gourh point of view, he is right in creating three key programs of establishing and managing the organization for sustenance. However, creation of standardized system for creating budgets will help tailor expenses in a rightful channel, manage costs of spending and help the organizations longevity. As an entrepreneur, managing my small business at first was challenging and led to wastage of capital and resources, but after critical thinking and assessment, a certain amount of money was set aside to import some devices; and its expected to make return of such amount or more. 2. second set of money was also set aside for sustenance of manpower, who did the marketing and sales of the devices accrued and not a dime was added to it as planned, third was the running cost of the earlier two amount been put aside for earlier business. On the long, after months of budgeting actions, the sum of two hundred thousand naira was left untouched and a profit was made in double fold compared to when a budget was not designed.

    Good post

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Use of a Standardized budget system: Such a system is valuable as it streamlines the budgeting process. Instead of having about 4 individualized systems with the potential of causing disharmony, a single standardized system will act as a base thereby creating an harmonized way of budgeting within the different departments/programs.

    Gains/Benefits of a standardized system:

    1. Order: The organisation will benefit from a sense of order/oneness.
    2. Credibility: Funds and other stakeholders may tend to see the budget process as credible and thus build trust between the organisation and other stakeholders.
    3. Continuity: In the event that a member of staff leaves the Job, it is always easier for the new recruit to carry on and understand what the former was working on.
  • It is valuable to have a standardized system for creating budget because, unless one has a sense of the financials, it is difficult to know whether one can achieve one's plan. My organization might gain confident from the funders and partners since they are convinced what the organization needs. The benefits I have noticed are one single program design may have been implemented in two to three projects but each of the projects would have had a totally separate budget. Secondly three catergories of expenses were created: Program expenses, Shared program expenses, and overhead expense. Thirdly I could see that these principles helped me organize costs.

  • It would be valuable to have a standardized system for creating budgets due to the common information gained. It can be used as a tool to track records of actual and estimated costs for instance.

    In addition to the benefits that Dr. Gourh has described, our organization might gain a clarity of information for all shareholders of the organization.

    We have already created a basic system for organizational budgeting, the benefits we have you noticed enable us to measure and evaluate our actions.

  • Standardized system for budgeting prevents under-estimation, over-estimation and omission of budgetary items. its also ease the process of monitoring and implementing budgets across various programs and projects of the organization.
    Most importantly, general and comprehensive needs of the organization are easily communicated to the donors and financials of the organization.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    About this is case, we have learned from ARMMAN, it is valuable to have a standardised system for creating budgets , because the budging for your organization you have clarify every program needed each number of that have you to lose money, for functioning of the the project needs expenses. After that I have to estimate correctly my budget of each project and add shared costs to prevent eventual expenses that can happen after. To facilitate my task, I have to collate all budgets into centralized budget from existing programs an creating categories of expenses, so I could control all budget line and know if expenses for activity are on place or it is on overspend, while it will be easy to justify every amount oriented for each program depending on the planification you have made before engaging your expenses.
    What my organization gained is that for all the programs we have, for each propram it must be defined the number of projects to have to expense to and add costs of program. For budgeting, to must plan for activities and know what cost for each on. Finally you have categorize expenses, because there are different departments to manage to must response to all needed.
    If you have already created your system, the benefits I have noticed is that to manage the complex budgets, the first thing to do centralize all and categorize all expensive and see what the budget for each program to engage expenses following a good planification and schedule.

  • whenever you are having different projects for implementation having shared program expanses and overhead will decrease the cost / expanses. and create a sort of synergy. buy deploying the shared overhead team further we can distribute team efforts and the time they are giving to the each project based on each their contribution and involvement.
    Abdul Rauf ilham

  • An Organization's ability to design a standardized system for creating of budgets ensure an effective reporting system for stakeholders of the organization.
    Also, it enables the business to meets its organizational expenditure needed for projects thus the budgets helps the business to work within their means and not overspend.

    The benefits includes:

    1. the continuity of of administration thus the resignation or death of an employee in a particular departments does not affect the production of the company rather the next employee only needs to view and study the standardized system implemented to continue the projects.

    2. the standardized system for budgets helps in the planning, implementation and monitoring of projects.

    3. the standardized system for budgets helps the organization to measure performances and achievements in order to improve to increase income or limit cost.

  • Our Finance Manager/ CEO and board need to use our organisational budget in order to perform cost analysis vs performance and ensure expense control / in relation to effciciency and long term sustainability.

  • A standardised budget gives a true picture of amount a company will need for it's activity over a given period. This informs how much funds an organisation should raise for it's activities.

  • Standardized budgeting system would result in immediate as well as long lasting benefits for the company. Some of them are:

    1. Improved cost control.
    2. Better Coordination
    3. More accurate information for decision making and managerial process.
    4. Easier and efficient measuring of inventory.
  • My name is Azeezat from Nigeria: The case study is enlightened and presented me with practical sense of what the course is all about. A big thank you to Philantropy University for creating this platform for young individuals to learn. I am indeed excited to get started with the course.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits

    It would be valuable to have a standardized system for creating budgets for consistent reporting. Secondly, it is important to avaid errors of over-statement and under-statement of financials. Thirdly, a standardized system of creating budgets is important to align with international financial standards, which is what the funder/donor is looking for.

  • Good morning all, my name is Lekan Adejumo from Nigeria.

    Regarding the case study shown above, Dr Gourh has done a wonderful job in setting a new standard for the organization finances, looking expressly into the expenses and segregating each into different accounts.

    The importance of a well-defined process for budgeting at my organization cannot be overemphasized, because it makes every fund allocated to the organization accountable. Also in addition to what Dr Gourh has done, He only accounted for the organizations expenses, and no account for the inflow of funds.

    A well structured account book should be able to balance the organization income (inflow of funds) with its expenses (outflow of funds), this way the organization will be able to track per time were they are on the profit/loss margin. If there will be any need to cut the organizations expenses minimizing the outflow of fund at any time of the year, or increase / raise the income of the organization to the forecasted expenses.

  • Good morning my name is Yao from Côte d'Ivoire.

  • Case study above helps me understand that in an environment where funding is scares its wiser to streamline budgets that way you have a clear understanding where your expenses go and you are in a better position to articulate to your possible funders what your exact needs are without confusion. I am not a space organisationally where this is really applicable is we only run one project but the principles from the case study are a great base for the future

  • @daybeedab said in Module 1: The Purpose of Budgeting:

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Good morning.
    I'm Deborah from Nigeria.

    A standardized budgeting system promotes efficiency in an organisation and saves time.
    This is because the organisation has a budget format which it can use and modify when necessary.

    It also helps an organisation determine and communicate its financial needs accurately, thus promoting clarity: all necessary
    stakeholders are aware of what is needed.

    Goodevening,
    I'm daniel from Kenya and am a consultant
    Scarce resources such as; time and money to all individuals and organizations need efficiency and effectiveness in their use, this therefore requires planning. Besides planning, Control is also necessary to ensure that plans actually are expediated asstructured to yield anticiapted results. A budget is a tool that organisations use to plan and control the use of scarce resources attain its objectives and how management intends to acquire and use resources to attain those objectives.

  • Goodevening,
    I'm daniel from Kenya and am a consultant.

    Scarce resources such as; time and money to all individuals and organizations need efficiency and effectiveness in their use, this therefore requires planning. Besides planning, Control is also necessary to ensure that plans actually are expediated asstructured to yield anticiapted results. A budget is a tool that organisations use to plan and control the use of scarce resources attain its objectives and how management intends to acquire and use resources to attain those objectives.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn.

    (a) Why would it be valuable to have a standardized system for creating budgets?

    I am Diana Hyman from St. Catherine, Jamaica. I believe there is value in having a standardized system for creating budgets for the reasons listed below:

    (1) It provides Transparency and Accountability of operations of any organizations to/by all stakeholders.
    (2) It provides a medium for Succession Planning, corporate governance with includes, auditing, board responsibilities, etc
    (3) It allows for the efficient and effective monitoring, distribution and allocations of the organization's limited resources
    (4) With systematic budget standards the organization can apply best practices of the industry and/or governing organizations
    (5) It allows for strategic planning and proactive decision making in the vision, mission and objectives of the organization for impact and sustainability.

    (b) In addition to the benefits that Dr Gourh has described, what might your organization gain?
    (i) All of the above stated in question 1 and more.

    (c) If you have already created a system for organizational budgeting, what benefits have you noticed?

    Yes, I have done some forecasts and estimation but have not applied , hence will not notice any benefits just yet.

  • Valuable to have a standardized system for creating budgets:

    Standardized system for creating budgets bring about uniformity in the way budgets are done. In turn, uniformity helps in monitoring and evaluating the financial aspects of the organizational program. Without standardized system for budgeting, the organization will not be able to compare and be informed of the performing programs.

    Benefits to be gained:

    It is usually said you cannot manage what you do not measure. The lack of standardized systems ensures flawed results of estimates and lack of clarity. This means the organization will make decisions based on conjecture. Standardized systems benefits the organization in that management has the correct information and clarity for decision making.

  • If a system is on ground it makes it easy for the budget to be created without much stress and besides the system on ground has to be very standardized.

    With a system on ground it help minimize error or omission of important figures.

  • It would be useful to have a standardized system for budgeting because it makes it clear what expenditures are strictly related to the program,
    Shared Program Expenses, and Overhead Costs. And funders and partners will have a clear view of the entire program budget.
    And also It facilitate the Project planning, Fundraising, Project implementation, Monitoring and evaluation:
    and Reporting.

  • Standardized budgets allow any team member to access budget information without difficulty. It exhibits budget information clearly so funds can be used efficiently.
    My organization gains financial understanding for better project planning and concise, accurate explanations to donors and stakeholders.
    The benefits we have noticed is more efficient use of funds, as it is easier to plan projects when we know exactly where the money is coming and going. It also impresses and pleases donors that we keep a sharp eye on the budget, taking their money seriously and showing respect for their donation.

  • Having a standardized system for creating budgets enables an organisation control expenditure , mobilize and allocate resources effectively , help through the process of auditing and can promote accountability and transparency

  • This will allow the organization to have a complete budgeting withiout missing out hiden expenses, and also have a clearer view of the expenses that are suppose to go for administrative or program.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Having a standardized budget keeps us in check, helps us plan effectively, you know in the past what we do is that we know we need to empower people on Agriculture so when it gets to the stage of renting a Hall, we ask for money, at the stage of inviting facilitators we really round to look for stipend to give, but having a budget as the professor rightly said, prepares you for the task ahead, you know if it is something that can be carried out

  • The purpose for a well defined budget is the means to your organization's end. Its success, financially, is the reason you entered this pursuit. And starting with a well defined organizational budget will ensure this end and give your benefactors the necessary knowledge to ensure that their funding is adequately spent on the desired project and ensures future funding.

  • My name is Deaven. I do not have any experience yet in budgeting.

  • Good Morning.
    My Name is Moses From Nigeria
    From the case study, it is important for any organization or individual to have a standardised method of budget, it it will make it easy to run the organizational project with ease, also it will reduce lost of money, and the organisation will have a good presentation of her programmes and how much needed to the potential funder

  • A standardized system of budgets promotes transparency and rational allocation of resources in an organisation.It helps to focus on the organisation's mission while ensuring consistency.
    I am yet to create a system for organisational budgeting. Looking forward to learn and create one.

  • I believe that having a standardized system would even allow for the organisation to better assess the sustainability of its activities, and to understand whether it is able to cover the its core and shared program expenses in the future.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    A standardized system for creating budget help to increase the efficiency in organization operation and help reduce time taken in preparation of budget.
    One of the benefit is that , there would be easy access to fund from your fund raiser. Thanks

  • A standardized budget system increase the efficiency of the organization and reduce time wastage in the preparation
    One of the benefit is that it create easy access to fundraising from the fund raisers of the organization.

  • Budgeting is the basis for all organisational success. It helps with both planning and control of the finances of the project. If there is no control over spending, planning is futile and if there is no planning there are no project aims to do with the allocated budget. So for any project a standard budget is needed including all the expenditures.

    As Dr. Rajnish Gourh explained before that if we do not estimate our project’s budget correctly, if we do not include shared program costs in our budget, then we will lose that amount of money.

    1. My name is Sandile Tsie from South Africa. I'm a Community Development Facilitator, Assessor and Moderator. I'm into Skills Development and Training
    2. To development a budgeting systems that will speak to our vision
    3. I’m most excited understand budgeting from people and institutions who are not from South Africa
  • my name is BARNABAS AMBETTER from Nigeria. having a budget gives you detailed accounting record on how to actualize financial goals as a corporate entity. it aids the organizational long and short term goals. A budget aids the organization in mapping out the resources mapped for meeting organizational goals

  • Hi, I m Oladare Ayodele from Nigeria.

    It would be valuable to have a standardized system for creating budget in order to ensure:

    1. clarity of activities of income and expenses.
    2. that our funders and partners have understanding of the operation.
    3. that budgeted activities does not run into deficit and loss.
    4. that expenses are classify into program expenses, shared expenses and overhead expenses.
  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    Having a standardized system for creating a budget is essential in every organization. The standardized system of budgeting includes budget from various programs, departments sub-departments as well as overhead cost. This system ensures that the correct budget is estimated for the organization.
    We gain the expertise of correct budgeting process for our organization. Adhering to these processes and procedures will enable the organization prepare an all encompassing budget.
    The benefit is to go through the budget to check the various it items contain in the preparation of the budget and consider making amendments if possible.

  • Hi everyone
    I am Gerald Ilamla a livestock Economic Development Advisor at a local NGO in Tanzania. The benefits also includes

    1. Make easy for a person responsible for managing budgets of several programs
    2. Equal contribution for shared expenses in the organisation
  • Why would it be valuable to have a standardized system for creating budgets?

     Having a standardized budget creation system will help an organization in developing a highly recommended 
     financial management principle.
    
     It will make the job of convincing investors/ partners into putting more of their resources into the organization 
     less stressful, as all cost will be clearly defined.
    
     This will also help in time management as all cost will be organized appropriately.
    

    In addition to the benefits that Dr. Gourh has describe, what benefits might your organization gain?

     Standardized budget creation system, for my organisation, will serve as a yardstick for progress measurement as 
     it concerns expenses and income management, and performance. 
     Also, As a part of record keeping, it will serve as a yardstick for measuring the effect of expenses over income.
    

    If you have already created a system for organizational budgeting, what benefits have you noticed?

     I am yet to create a budget for my organisation.
  • It's valuable to have a standardized system for creating budgets so that it allows you to understand whether you can achieve your plans. In addition, organizations will be able to look at the big picture of the financial health of the organization across projects. For our organizational budgeting, I have noticed that we are able to more accurately "predict" revenue/expenses that allows staff to determine which new/current initiatives we should or should not invest in.

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

  • The organisation stands to gain tremendously in terms of insight to the overall budget of the organisation and budget allocation per project and inter alia classification of projects and clarity on shared resources.

  • Good morning. My name is Sylvester T. Sowah from Sierra Leone. I havent created a budgeting system for an organisation that's why this course becomes essential to gain skills of budgeting so that I am capable to planning income and expenses accordingly.

  • absolutely its very important to manage your costs otherwise you lost some money.

  • Having a standardized system to creating budgets is of importance because of the following reasons:

    • It makes budget making process easy

    • It minimizes missing important items in budgeting

    • Important budget items are likely never to be forgotten

    • I avoids misrepresentation of items. If an item is program cost it will be entered as so.

    • In my organization it helped in identifying wastage and therefore we are now confident with our budget

  • In response to the topic of discussion as follows:

    1. Why would it be valuable to have a standardized system for creating budgets
      I consider budget as the mirror of a project intended to be undertaken. it is an invariable tool use to plan and control project scare resources such as money and time. It is then imperative that for any organization to remain in business and success in attaining its corporate height, budgeting of all activities and actions to be carried out must be well articulated. Notably, every project and business is carried out with an intended result, the achievement progress of such project can be foreseen beforehand and also monitored with the use of a standardized and an all inclusive budget.

    2. In addition, to the benefits that Dr. Gourh has described, What might your organization gain?

    1. A standardized budget will be an advantage to my organization because, every manager and his or her respective team members will learn to think ahead, anticipate results and take action to remedy possible poor results of any intended project to be handled by the entity
    2. A standardized budget will challenge every employee within my organization to strive to achieve project specific goals
    3. A well articulated budget will benefit my organization in enhancing the formalization of management's plan in practical terms
    4. More so, a standard budget will allow all employees to know the agenda or target of other business units within the organization
    5. It will also serve as road map to evaluate the viability and profitability of the business and inculcate the self consciousness of resource management among the staff
    6. Since a budget is the mirror of any project, it will enable my organization to review project/business plans and also make changes where necessary.
    1. If you have already created a system for organizational budgeting, What benefits have you noticed?
      Actually, i have not developed any organizational budgeting system yet, but i have been privileged to prepare a budget for a Mineral exploration project, wherein i was challenged to think about the entirety of the project with a team of 20 persons. The task availed me the opportunity of researching and understanding the concept of business in general and how cost allocation drives the approval or disapproval of a business idea. In carrying out this task, i got to understand the expectations of the stakeholders. It is worthy to note that any mineral exploration is a highly risky venture which could turn out positive or negative, thus, any money intended for such project must be thought out thoroughly with a risk assessment and mitigation plan.
      In a nutshell, the exercise was a learning curve for me, thus my interest and enrollment of this course to improve my budgetary skills
    1. It would be valuable because with the standardized system for creating budgets, it enables all the activities of the organization to be factored or considered into the budget without any omissions.

    2. My organization will be able to achieve it aim and plans of which the budget was prepared without any regide calculations.

    3. My organization will get to it next plan more faster and it will reduce pressure on the organization at large.

  • It creates a basis upon which reference can always be made to plan, implement, monitor control and report about a particular program or project.

  • Hello, my name is Reena from Kenya.
    I believe a standardized budget system helps in predictability of the budget and minimizes time for confirming which costs to charge and where in a project. I believe that this system will be user friendly as it suits people who are not finance experts to come up with budgets.

  • @daybeedab said in Module 1: The Purpose of Budgeting:

    @Course_Operations said in Module 1: The Purpose of Budgeting:

    In the case study above, you heard one professional’s opinion about why it is important to have a well-defined process for budgeting at your organization. Now it is your turn. Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    Good morning.
    I'm Deborah from Nigeria.

    A standardized budgeting system promotes efficiency in an organisation and saves time.
    This is because the organisation has a budget format which it can use and modify when necessary.

    It also helps an organisation determine and communicate its financial needs accurately, thus promoting clarity: all necessary
    stakeholders are aware of what is needed.

    Good day, I am Samuel from Nigeria
    It helps an organization to execute and implement project with minimal losses

  • I have not been involved in any organization's budget creation process and that;s why I am taking this course.
    I believe that a standardized system for creating budget will reduce time spent in reconciliation of amount spent and also help to reduce wastage.

  • @Course_Operations said in Module 1: The Purpose of Budgeting:

    Why would it be valuable to have a standardized system for creating budgets? In addition to the benefits that Dr Gourh has described, what might your organization gain? If you have already created a system for organizational budgeting, what benefits have you noticed?

    A standardized system for budget creation creates a shared understanding for all those whoa re contributing to budget formulation, which may be several departments, divisions or teams. This shared understanding will likely speed the process of budget creation. Also, all contributors will sue the same method or format for bugetting which means departmental budgets can be collated into an enterprise budget more easily which leads to clarity for everyone. The benefits I've noticed with my clients for whom I do program budgeting is the process is quick, smooth, and I get executive approval at the first ask.

  • I'm Jashmine Pandian from India , I have completed my CFA(ICFAI) .I feel the following are the benefits to Banking organisation
    1.focusing on improving tax collections
    2.leverage technology
    3.offering online personal loans and doorstep banking
    4.kind of a technology platform could be made available in the future
    successful mergers

    1. bank services accessible through ATMs of all banks.
      6.The systems, access controls and the risk management framework
      7.It is an important step to safeguard and protect the interest of account holders
      8.laundering or tax issues.
      9.any exceptions are created to facilitate certain transactions
    2. control is put in place.
  • A standardized budgeting system is crucial in an organisation or any business or projects, because it will allow a smooth monitoring and expenditure of organisation monetary. It also helps members within the organisation to easily understand how organisation capital can be utilized, also as stated earlier, a clear standardized budgeting system help to speak for organisational needs. Lastly, this process attracts funders or donors and increase of association affiliation, this at large enhance a positive image of an association as well support.

  • 1- to fulfill the organization panning activities and its mission.
    2- to know the resources the you have to sustain your organization activities and program.
    3- to development the organization to modern standard.

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