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Having a standardized system creates more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming. The organization would gain a more streamlined project view from the budget and a cohesive budget to see where possible budget "leaks" are.

The importance of budgeting lies in the ability to prevent unnecessary costs and to allocate the correct amount of the budget to each corresponding need and activity

It is important to have a well-defined process for budgeting in an organization because it creates a culture of responsibility, transparency and credibility. When managers are involved in the budgeting process they develop a sense of ownership which helps smooth implementation of budgeted activities.

Budgeting is something that our organization should be thinking about very carefully each and every year. The budget allows our organization to plan and track our financials for a defined period of time. It acts as the guide and dashboard for project implementation.

Budgeting helps to give clarity, if my organization does not have a clear budgeting procedure, we won't know the area in which investors funding we be required, giving account on how much capital has been spent, where, what and when we be difficult.

If when does not have clarity as earlier mentioned it will be difficult to measure the status of organization, what can not be measured can not grow.

Major importance of budgeting is for clarity.

If there is no clarity, organization can not know areas that need improvement.

The purpose of a budget is to plan, organize, track, and improve your financial situation. In other words, from controlling your spending to consistently saving and investing a portion of your income, a budget helps you stay on course in pursuit of your long-term financial goals.

The purpose of a budget is to plan, organize, track, and improve your financial situation. In other words, from controlling your spending to consistently saving and investing a portion of your income, a budget helps you stay on course in pursuit of your long-term financial goals.

How much financing will your farm business require this year? When will money be needed and from where will it come? A little advance planning can help avoid short-term shortages of cash. One useful tool for planning the use of capital in the farm business is a cash flow budget.

A cash flow budget is an estimate of all cash receipts and all cash expenditures that are expected to occur during a certain time period. Estimates can be made monthly, bimonthly, or quarterly, and can include nonfarm income and expenditures as well as farm items. Cash flow budgeting looks only at money movement, though, not at net income or profitability.

A cash flow budget is a useful management tool because it:

forces you to think through your farming plans for the year
tests your farming plans, such as if you will produce enough income to meet all your cash needs
projects how much operating credit you will need and when projects when loans can be repaid
provides a guide against which you can compare your actual cash flows
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Budgeting gives proper direction of the organisation in its activities. controls expense and helps track and improve the finances

Having a standardized budgeting process add conformity and minimizes discrepancies that lead to errors.

The consolidation of budgets so that you can see where each department overlaps and shares resources is vitally important to understand the pull of each department on a budget overall. You can see which departments use more resources and where resource allocation could be better managed in the future to tackle specific issues. It also allows you to keep better track of your cash flow so that you know when and where you have greater liquidity for emergencies which is critical in the non-profit, crisis- relief sector.

Having a standardized budgeting process add conformity and minimizes discrepancies that lead to errors.

The purpose of budgeting is planning allotment of money you have to different expenses.
You must allot amount due to a post according to priorities and not neglect any.

Having standardized system for creating budgets will make it easier for everyone, from the new recruits, current staff, management, board and auditors. The organization will benefit from opportunities to reallocate and repurposing of budgets if necessary and proper planning of resources, and cater to the need of reallocating resources across departments/projects if needed to optimize resources (as resources available for NGOs are usually limited). It can also be aligned with timelines to properly track progress.

Having a standard system of budgeting ensure that the organization tracks all expenses and income generated during the implementation of the project and how such project is achieved during the phase of reviewing such project and on how to discover leak, flaw, failure and on how to input necessary correction to similar project being embarked upon in the future.

A well defined process allows for better organization and makes it easier to accomplish your project goals.

Budgeting is an important step for every organisation, since it provides an insight of how much resources we have for conducting every activity. It is also a tool of monitoring and evaluating the activity. Monitoring means we can measure how much resources have been incurred into an activity, and how much left. Evaluating means at the end of activities, we can decide whether it has been finished under planned limitation, or over the limit and thereby have we done it well or bad.

I think standardized budget is key features for organizations to flow their expenses, debts to better track expenditures which lead to good gouvernance and management. It also helps the organization to see the overall funds, the rest of funds to compare them with their upcoming expenses and events so they can distribute and manage the money according to that.

Standardized system is important for every organization because when a lot of projects have come, budget process can be complex and costs cannot be traced anymore. On the other hand, estimates for coming projects cannot be specific and others will not believe the organization because it does not have standard financial procedure.

By having an standardised budget, the organisation will be able to have a clear picture and analysis of its financial status and will be able to operate more efficiently and to identify budget lines that have been over or under budgeted, as well as to avoid duplicating costs.

Why would it be valuable to have a standardized system for creating budgets?
I have found that it makes it easier to present program financial reports and statements to management and auditors. Additionally, it makes it easier for management to understand program financial reports and statements, consequently attracting less questions and increasing more support for future programs.

What might your organization gain?
Less time spent on creating and presenting financial reports.

What benefits have you noticed from your created system?
Easy flow of work between departments and program teams.

It enables one to understand and coordinate how various projects may complement each other in order to improve efficiency in terms of fund allocation and bring about greater achievements in project outcomes.

A standardized sytem allows an organization to know and calculate well all its costs, income sources, and plan out expenditure accordingly to finance its programs efficiently .

A standardised system for creating budgets helps an organisation to quickly check its budgets make changes as to where needed.
The organisation would gain the benefit of not under budgeting because every aspect/program is linked in the organisation's budget.
A created system of organisational budget helped me in simply upgrading budgets from one period to the other

A standardised system for creating budgets helps an organisation to quickly check its budgets make changes as to where needed.
The organisation would gain the benefit of not under budgeting because every aspect/program is linked in the organisation's budget.
A created system of organisational budget helped me in simply upgrading budgets from one period to the other

Budget allows and enables to understand and coordinate how various projects may complement each other in order to improve efficiency in terms of fund allocation and bring about greater achievements in project outcomes.

Budgeting helps in planning for resources needed to finance the business operations needed to achieve the service, revenue and or profit for the financial year.

Standrdized budget system is the guidlines for all projects in the organization. Every projects will have the same method to manage the budget. Moreover, project leader that has no budget skill would work more effectively by following this budget guidelines. In the past, my organization did not bring overhead cost into account. We think that cost for accout auditor should not share to each project because it only done one a year.

from controlling your spending to consistently saving and investing a portion of your income

Having a standardized system creates more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming. The organization would gain a more streamlined project view from the budget and a cohesive budget to see where possible budget "leaks" are.

It will save time. It help you to ensure every expenses is included in the budget. And each expense will be give a standard budget code/budget line.

Budgeting ensures that all project activities are accounted for. Stakeholders can have a clear understanding of what each component of the projects cost. Some projects even do set a target of cost of each component. For instance our projects requires that overhead cost should not exceed 30% of total costs.

It is key to have a well-defined process for budgeting at your organization as this will allow you to track expenses based on estimated costs or budget. By standardizing the budgeting process, all projects can be monitored in an organized manner, which will allow for more efficient planning.

When you have a standardized and organized system for creating budget, it will be easy to estimate and plan for funds that will come into the organization and also help to minimize wastage of resources.

I loved your answer!

The purpose of budgeting and having a structure to do this activity is to ensure that we have every component of what we need to spend on, in place. This makes it easier and transparent to show any donor or funder why we need the money that we ask for. For any activity, a structured process makes it easier for everyone to follow and understand the whys and hows of what needs to be done. In the case study, the shared components expenses was a great example of good structure. Without it, the cost needs could go haywire

Budgeting is a simple way of planning the financial path of a company , how it spends money, what percentage it spends, how it recovers from expenses and more, inorder to ensure the company remains sustainable

It would be valuable to have a standardised system for creating budgets to as to ensure all expenses in every project are well catered for.

In addition to the benefits mentioned by Dr. Gourh, my organisation would gain a well controlled expenditure exercise as well as give standardised quality of implementation services to the project beneficiaries, leading to achieving 100% project goals at the specified time.

My organisation has a system of organisational budget which has several benefits such as , having all organisation expenses catered for, having a control over project and non project expenses and makes it easier to monitor expenditure in a specified time as well as extracting annual reports.

he importance of budgeting lies in the ability to prevent unnecessary costs and to allocate the correct amount of the budget to each corresponding need and activity

Having a comprehensive budget will strengthen the organizational financial management and fully focus on activities with clear knowledge of the expenditure tie to that activity.

The purpose of budgeting

1. Managing current expenses effectively
2. Projecting the future expenses
3. An operating budget should be liberating instead of restricting. It can help you reduce debt as you work toward a goal of building financial reserves.
4. With a well-written and closely followed operating budget, you can establish financial accountability instead of spending haphazardly and losing sight of your goals.

Budgeting process varies with type, size and stage of the organization and the competitive nature of the operating or business environment

But here is my question can we see the organisation culture too while form a budget strategy for our business

It allows the programes to have an idea if it has the necessary finance to achieve its goals. A budget gives the organisation a road map of how the spending should be, so that it does not overspend.

Having a standard budget makes transitions of power cleaner and more transparent - everyone is on the same page about the financial nuts and bolts of the organizations

A standardized system will help us to know exactly where we need to focus our improvement strategy for that particular period of time.
The organization can gain a lower cost in expenses for business operations

It may also become apparent in the course of implementing the budget that certain areas have been underresourced and corrections must be made by reallocating resources from other areas or from a contingency reserve. The budget must be live and flexible, particularly an operating one.

Over time certain activities become recurrent and predictable in nature but if the organization is in a fluid operating environment then it has to be constantly learning from its experiences and 'careful' budgeting is key indeed-especially in social impact work where generous funding levels are not always THE defining element for successful program outcomes.

Budget guides your entire operations and therefore you need a clear and comprehensive expense plan for your activity implementations.

You need to clearly identify what cost elements are categorized under programs and also what cost elements go for your overhead. This is crucial to your organizational operations.

Budgeting helps to plan and execute projects/organizations and ensures expected outcomes. Furthermore, it guides the activities to be performed on time and with resources available. Simply put, the success of a project or organization depends on budgeting for two reasons- timely completion and with the allocated money.

Having a standardized budget helps the board and staff has an ideal of the cost of operation and programs.

Having a budget is essential to the organization. It informs organization staff of how much funds is available for operations and program cost.

The importance of budgeting in an organization is that it helps one to streamline programming and priority setting, whereby resources are allocated to priority areas that are vital for effecting programme deliverables as per programme strategy and donor requirements

Creating an organizational budget and following it in the course of implementation is very important. Having a budget will help to ascertain how much money will be spent on particular projects and the shared costs when it comes to personnel and administrative costs.

A standardized system for budget creation allows the organization to differentiate between the costs directly related to each project and the costs shared by the different programs as well as to have an eye on the whole budget.

The importance of budgeting is knowing the cost of each project in time.

Having a standardised budget across the organisations facilitates - effective and efficient allocation, tracking and monitoring, impact assessment based on ROI of budget, reporting and engaging with stakeholders on effectiveness of the allocation. A standardised budget is good for planning and for collaboration within teams and with external stakeholders

Budget is the most important factor for governance and effective management. Organization's effectiveness and its efficient management of its resources all leads to its success and sustainability.

Having a standardized system creates more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming. The organization would gain a more streamlined project view from the budget and a cohesive budget to see where possible budget "leaks" are.

Having a standardized system creates more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming. The organization would gain a more streamlined project view from the budget and a cohesive budget to see where possible budget "leaks" are.

I am Reginald E. Joojo Yawson, a Ghanaian Practising Optometrist with several years of experience. I am currently working with St. Thomas Eye Hospital Community Eye Screening project in partnership with UNITE FOR SIGHT, an American NGO that supports eye surgeries for the poor in AFRICA, ASIA and in Latin America.
I gain satisfaction when a see people who have recovered their vision after cataract surgery on Friday mornings when they come for post-op reviews. It is a real feeling of contentment .

It would help to see where we are, where are expenses are going and what remains for future projects.

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

When an organization has a standardized system for creating budgets, then they are able to compare and contrast budgets across each year or even quarter within their organization. They can see where their money is being used, and the system keeps it all organized rather than having different expenses just listed in a bank account.

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

Our organization (and any organization) needs a budget in order to obtain grants/funds and communicate with stakeholders on how funds are being used to propagate the goals of the organization. Since our organization is just starting out, we don't have an official budget. We are trying to put one together, but it's hard since none of us has been explicitly taught how to create a budget for a non-profit. We don't even know where to start, especially since we have barely any money. How do you create a budget for your organization and programs within your organization, when you're just getting started and don't yet have the necessary funds?

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

Through starting a very basic budget (which at this point is really just a list of expenses), we at least have an idea of what expenses we do have; from there we can organize these expenses into one cohesive system.

The importance of budgeting lies in the ability to prevent unnecessary costs and to allocate the correct amount of the budget to each corresponding need and activity

a well coordinated project will help in

1. Project planning
2. Getting know how much money you need to lobby for the project
3. Smooth project implementation
4. Clear guide and smooth motoring and evaluation
5. Ease in reporting

a well coordinated project will help in

1. Project planning
2. Getting know how much money you need to lobby for the project
3. Smooth project implementation
4. Clear guide and smooth motoring and evaluation
5. Ease in reporting

Creating a budget for an organization will help foster sustainability and increase profit.

True, having all the budget components organized helps alot in monitoring and control which aspects increase and reasons for increase as well as planing for a strategy to minimize or elimate the increased amount

AIFP is a decentralized organization who faced the same challenge described in the case study. it's important to have a standardized system for creating budget because at the end of the year we are facing the problem of synchronization of our different program budget, and at the end we come out with 04 or more financial statements. With this explanation made by Dr Gourh we have a guideline which seems more simple for us as we use is description to draw an example of budget we are thinking that these will be more easier for us to have an inclusive and cohesive budget.

thats true

The importance of budgeting cannot be over emphasize because it helps to know the need amount for a project and how to source the fund, it also help to eliminate unnecessary cost a smooth operation of a project.

Over time certain activities become recurrent and predictable in nature but if the organization is in a fluid operating environment then it has to be constantly learning from its experiences and 'careful' budgeting is key indeed-especially in social impact work where generous funding levels are not always THE defining element for successful program outcomes.

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 Having a well-defined process for budgeting enables organizations to put the exact figure of the entire cost of the organization before start of the operation by through already defined steps. Having standardized Budgeting system enable the organization to have accurate budget without any missed coming expense, regardless of the availability of staff who prepared the previous budget.

The most important purpose of budgeting is to operate a project or program smoothly. Budgeting helps to decorate different kinds of expenses and making report periodically. It helps to incur expenses systematically, step by step.

Budgeting gives direction to the entire program team as it helps them to incur only costs that are allocable, allowable and reasonable which is necessary for a project to be completed successfully.

To be effective and efficient in terms of financial utilisation. Being and M&E person, i have to monitor the project progress activities implementation in canvas of these two things, while for evaluation purpose, we have to evaluate the projects, programs in this regard. And the lessons or studies derived by performing monitoring and evaluation aid the management to be more preventive rather than corrective when planning budgets

In the addition to what Dr. Gourh, proper budgeting includes categorizing or classifying all the expenses according to scale of need, wants and urgency which helps in efficient budgeting. It help managing, maximizing and accounting for the funds available. time and execution of projects are efficiently carried on with no much problem and if problems comes up it might necessarily be finance but it is, the money budgeted for uncertainty or miscellaneous will cover for it. In a nut shell budgeting incurs planning and proper allocation of funds accordingly.

We defined budgeting process enables the organization to put clearly and easily set the exact buget without missing any business entity and repeating the same procedure each cycles of budgeting periods using similar and standardized procedures. As a result of these organization will save resource (Money and time) used to coplete the budgeting process and forecasting errors will be minimized.

By creating a centralized budget system will help you track not only your total cost of your projects, but will allow you to see where you are allocating fund so that your less susceptible to the loss of funds that could be allocated to new projects.

The purpose of a budget is to plan, organize, track, and improve your financial situation.

Budgeting is synonymous to planning. Without planning there could be no budgeting and vise versa. Creating a standardized financial management system is like a centralized air condition. Therefore, with the system, it is cost effective and efficient.

the purpose of budgeting is to plan and track your financial records to enable a smooth running of an organization's program

Having a standardised system of budgeting helps allocate different types of cost correctly which in turn simplifies the work for the person in charge of finance. It also allows possible donors, investors and other stakeholders to see the real organisation's status..Having a good budget for each program but following the same criteria wwill help track down success or problems at each step and allow one to make corrections fast.
Finally, a good system is a priority if an organisation wants to know where it is at and where it is going with the resources available.

Absolutely!

Having a standardized budgeting program will help to have more clarity of the resources that you need, and where to allocate those resources. By standardizing is easier to respond in case of having to make adjustments to the budget, specially if the organization is in an entrepreneurial stage. Also, it will help to easily comunicate to investors the resources that the company needs.

the importance of creating a good, realistic and organized budget lies in the acton the organization is going to take if you dont know the xpenses of yoout organization how to you expect to have capital or even the donors trust you their money.

It will project an organization as a serious and prudent organization. Part of the benefits is that it will open more investment and funding opportunities to the organization.

Having a standardized budgeting system within an organization makes it easy when there is succession within management. The designed system will make it simpler to capture the expenses in a more organized way making it easy for new management to follow smoothly.

Budgeting helps to standardize an organizational financial management, thereby:
. Creating a better understanding of the organization's flow of various income and expenses
. Plan for programs adequately to avoid budget deficit
. Trace costs to their drivers for proper allocation of overhead
. Check variances
. Generate relevant and timely report for stakeholders
. Improve donors' confidence in the management of their resources ( for not for profit making organisations)
. Better management decision making

The importance of budgeting in an organization its it's to promote clarity, accountability , to monitor and point out gaps ,reduce and prevent shortage of cash and even futher more to help in evaluation of the organization .

Having a standardized system creates more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming.

In the case of Dr Rajnish Gourh define about three steps of budgeting
Program Expenses
share Expenses
Overhead Expenses
These three steps helps us to know deeply about budgeting system in organization, we can manage our budgeting system through three steps, mostly people only focus on projects not budget,they lose all of fund and don't even think about overhead expense.

Having a standardized system for created a budget is a way to become a finance language comparable with other similar organizations. In addition, we obtain a precise vision of which capacity of the organization to materialize their projects and mission. The organization would also gain more credibility, transparency, and raise access to another finalcial resource. I believe that a great opportunity to implement a better manager.

The budget guides project implementers to ensure money is used appropriately, expenses are projected and anticipated and all expenses are catered for to avoid surprises