My Communities

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

The importance of budgeting helps prevent unnecessary costs, allocation of the correct amount of the budget to each corresponding need and activity such that all program activities run smoothly

thats true

thats true

Having a standardized organisation budgeting will help to erode completely or to a bearest minimum an overlapping budget.
It is important for organizations to have a central program budget system for easy accessibility, clarity and accountability.

Budget system is very important for each organization and business, using of the budget in the right way and in the mentioned line is very important, the clear format and reporting for the donor's and supporter's are main part of going on the organization prolong and create more opportunity.

It would be very valuable to have a standardized system for creating budgets in order to reduce the organization's expenses and losses, convince funders to fund projects and facilitate the achievement of plans.

holding is very important in an organization. with detailed budgeting, every financial expenditure decision has a record.

it helps to know all my budget categories. helps to know all different types of cost in my budget. helps to know estimate amount of each budget category.

Budgeting is vital function to reach organization targets

By having a standardized budget planning in place, it helps to moderate your performance and bring speed progress and easy acceleration not having to struggle in completing a task. Above all budgeting is a key roles that every individual can't do with out.

In order to spend budget efficiently over the year, convince the funder, achieve strategic goals and avoid shortage or low performance budget expenses, it is essential to have a system for budgeting.

The purpose of why having a standardized system of budgeting is to achieve your planed project by breaking down the grand total of whole budget to cover for each expense during the course of the project implementation.
After a successful completion of project as per the statement of work or terms of agreement, the organization could win the trust of donors or client which may give them another chance for money to run that organization.
Currently, our organization is implementing humanitarian information service in one of the refuges camp in South Sudan where by we work hard to unite the refugees and host community through radio programs. Through our activities, peaceful co-existence between the host and refugees has been realized as a benefit our our project

While a well organized budget helps organize costs, it also brings clarity to the funding of programs and projects and enhances accountability.

Having a standardized system for budgeting gives insight in your financial situation and the needs that you have. These are basic insights to run an organization responsibly. For social enterprises it is essential to be transparent. Funders and sponsors also often require insights into the operation budget and use this as measure on how well the organization is performing. They might also look at impact, but in the core will always be, what are the cost involved with the given impact, so how efficient is the organization. Budgets simply are essential, to make action plans and to monitor if you are performing as expected

A standard Budget refers to organizational financial strength, and having a proper budget procedure it cannot be run even a single day of a working process. Budget is that kind of monetary system which maintains a time -frame in which income and expenditure are measured as per segment. Anyone can observe the strength and weakness in the organization of studying it's budgetary manual and the main purpose of budgeting is the allocation, distribution, planning, controlling of finance in any organization.

A standard Budget refers to organizational financial strength, and having a proper budget procedure it cannot be run even a single day of a working process. Budget is that kind of monetary system which maintains a time -frame in which income and expenditure are measured as per segment. Anyone can observe the strength and weakness in the organization of studying it's budgetary manual and the main purpose of budgeting is the allocation, distribution, planning, controlling of finance in any organization.

A standard Budget refers to organizational financial strength, and having a proper budget procedure it cannot be run even a single day of a working process. Budget is that kind of monetary system which maintains a time -frame in which income and expenditure are measured as per segment. Anyone can observe the strength and weakness in the organization of studying it's budgetary manual and the main purpose of budgeting is the allocation, distribution, planning, controlling of finance in any organization.

Having a standardized budget has these benefits:
-requests are treated faster because they are processed on one system.

• performance can be monitored to meet the organizationel objectives
  -problems can be identify before the occur

With the little I could gather so far, Budgeting for every project helps the organization gain more in streamlining project costs and as well lies in the ability to prevent unnecessary costs and to allocate the correct amount.

the purpose creating budget to control expenses such as operations and implement, programs and projects un organization

A proper budget will ensure that no expenses are overlooked and that accurate costings are allocated to each expense line. Gains of proper budgeting is that the project will receive all the required funds to completion and also avoid unnecessary procedures of budget reallocation. Benefits of proper budgeting includes, having an informed source of information when communicating to project implementers and also makes it easy to track resource usage while investigating the variances.

Standardized system for creating budget is valuable for my organization in a way that it will help the a new employee who is in charge of making annual budget not to face a lot of challenges making it since this system has already been established. My organization will gain an organized plan of how to check on expenses and how to increase on the sources of funding.

I think it can help us in having a clear sense of how our money is spend. It will help the organization in having credibility in the eyes of funders.

Budgeting is very important in our daily life activities we under take in our various departments, Businesses ( local and internal) , House/home and our daily life spendings.
With budgeting it will help you to know the amount of capital needed for a particular program, the amount of capital at hand for that particular programa and the expected revenue, Gain and profit at the end of the program.

From experience budgeting helps to avoid impulse costs or costs that are not budgeted for. It also works as a control measure you can only run in your lane. It controls spending habits and you major important and budgeted items.

budgeting helps in planning,tracking and establishing control on expenses while in pursuit of short term and long term financial goals

Budgeting helps organizations to focus more on cash flows as well as how costs can be reduced. In other instances, budgeting helps businesses upsurge their returns on investment and as well improve profits.

In my opinion, it's important to have a standardised system to know how our spending works.
the advantage is the control and fair distribution of costs.

The most important thing in a budget is to avoid impulse spending, track your projects and to enhance transparency with donors

Having a standardized system for budgets will set a perfect standard in running the organization effectively without having the risk of running into bad debts and also creates transparency in all affairs.

The organization has a lot to gain in the sense that work flow will be smooth without hiccups and every dime spent will be well documented.

Creating a system for organizational budgeting helps in the running of the organization both financially & physically. Less time is spent in implementation, planning and execution in the end will help the organization greatly.

To have a standardized budget it helps to save time of funds management and control the cashflow well to maintain the capital of the programs.

Dr Gourh description gives a correct skill on how to run several programs under a single budget.

This can improve our organization, to save lose of capital as it will shows benefits and era under one system.

Having a standardized system of budgeting is so crucial because you understand the cost of what you are going to do .You already know the input costs and you implement well your projects.

The value of having a standardized system for creating budget in an organization helps the system managers recognize leakages as as blocking them and cutting down the cost of managing the organization so as to maximize utility, it also increase the technical-know-how which will later increase the productivity inother to reduce the turnarround time so as to meet with the optimal expectation of customers needs and certisfaction.

Budgeting in multiple projects in one institution help breakdown of financial drain of each project. However in the context where costs may not exactly be isolated to primarily benefiting one project, that is why there needs to be categories of money allocation. furthermore the complexity of multiple projects being run by different people creates loop holes for misuse of resources, as such a standard operating system for budget in an organization ensures harmony in similarity of expenses throughout.

In essence, having a standardized budget (as many has already mentioned) means that expense and cost allocations can easily be tracked down and managed. In addition to that, I also strongly believe that in the process of making a standardized budget we will be compelled to better learn about out programs and what it needs.

It is vital to have a proper budget to run any organisation and especially important in an NPO. This will give everyone involved an idea of how much funds are needed on a monthly basis and plan for more resources.

A budgeting system would definitely same time and human resources as all budgets could be seen as part of a whole as opposed to each one of them being approached individually, on its own terms.

Proper Budgeting helps in forecasting expenses and channeling resources adequately. It gives direction to organizational spending.

proper budgeting enables the project to be successful .

Having a clear and harmonised budget will reduce the time spent in looking into scattered budgets for the same organisation. It will also ensure that all projects / programmes and organisations expenses are well budgeted for and resourced. Budgeting also ensured sustainability of our organisations.

It is important to have all the budgets in a single system, this will allow to have a greater control over the different types of expenses in all the projects, you will be able to know which budget lines have been over-spent and which ones have not. It will also help to the needs.

Budgeting is critical as it clearly shows what the finance is required to achieve the organization's goals for the period. It sets the tone for fund raising, financial discipline through efficient use of resources and transparency to donors.

Having a standardize budget gives a lot of benefits to the organization as well as the stakeholders. In short, it is useful to know expenses incurred against planned activity, to evaluate the result against expenses incurred, to forecast the future financial requirements, to make cost analysis in order to figure out its benefits and loss, etc.

The Benefits of Budgeting includes help to Organize Your Spending and helps performance evaluations.

Budget in a way, helps an organization to know the output, or actual financial performance against the budget earmarked for a function. If a standardized budget system is in place organization would be able to measure how much has been spent and where necessary relevant actions can be taken, e.g
A budget to spend 1 million for a function and actual is 1.2 million, management can decide to accept the 1.2 million as a budget subsequently, or cut down on some things to achieve the 1 million earmarked. it gives a kind of control on expenses and output.
My Organization would gain more:

1. Expenses that are uncalled for and can be avoided will not be incurred.
2. It will encourage savings attitude in order to execute some projects without Head Quarters involvement.
3. Discipline when incurring expenses.
4. Monitoring of some head and sub-head expenses

Having a well defined process for bugdeting at an organisation can help the organisation to budget well and also plan for future plans. The organisation can also cater for the needs of needs of people in the organisation which could some time not be taken care of for example Dr. Fourth mentions the people at head office or vendors that contribute to several projects.

Who will need to use my budget and the information they will need to know.
The funder of the organisation will need to know what the plans of the year of the organisation are and in this case it will help them to be motivated after knowing that the plans made are of a great result at the end of the year.

How often the organisation should creat a cash flow bugdet.
****The organisation should create a cash flow bugdet every month, this is because the organisation can plan well when to pay their workers at the company and also other organisations expenses which could be needed to be paid monthly. The monthly cash flow bugdet can also help the organisation to know how much cash inflows and cash outflow so as to plan well.

Having a well defined process for bugdeting at an organisation can help the organisation to budget well and also plan for future plans. The organisation can also cater for the needs of needs of people in the organisation which could some time not be taken care of for example Dr. Fourth mentions the people at head office or vendors that contribute to several projects.

Who will need to use my budget and the information they will need to know.
The funder of the organisation will need to know what the plans of the year of the organisation are and in this case it will help them to be motivated after knowing that the plans made are of a great result at the end of the year.

How often the organisation should creat a cash flow bugdet.
****The organisation should create a cash flow bugdet every month, this is because the organisation can plan well when to pay their workers at the company and also other organisations expenses which could be needed to be paid monthly. The monthly cash flow bugdet can also help the organisation to know how much cash inflows and cash outflow so as to plan well.

A good budgeting system will help a company reach its strategic goals by allowing management to plan and to control major categories of activity, such as revenue, expenses, and financing options. Also, a standard system for creating budgets would help an organization to save time during budget and also ensure that the right steps and key considerations with respect to the activity carried out are taken. This would keep the organization on course and enable it to meet its objectives in a cost effective manner.

I agree with you. Having a well structured budgeting system is advantageous in saving time which can be used to follow up other aspects of the project.

Having a well structured budgeting system would help an organization; manage money effectively, allocate appropriate resources to projects, monitor performance, meet objectives, improve decision-making, identify problems before they occur - such as the need to raise finance or cash flow difficulties, plan for the future as well as increase staff motivation. So having a well structured budgeting system is very important for the welfare of an organisation.

Having a standardized system of budgting will make the organization function as one, despite having several projects.

It will make separate projects within the organization easily align with common financial goals,if any.

It will also make the organization to reliably assess/compare each project performance with each other.

halooooooo

halloooo

Budget helps to be on track as as organization of our financial programmes. it however also make us make a better planning decision of our expenditure of how and when to spend in a [articular programme. Budgeting is all about setting an amount aside to run all activities of an organization within a particular time frame and so, budget keeps us from feeling financially overwhelm and prepare for emergency situation.

One of the most important function of budget is that its keep us from financial debts and make us stay focused on our long term financial goals and its make us avoid over spending.

nice topic

Budgeting is very important and need to be plan very carefully. A centralized and standardized system need to be in place to see each project and department resources utilization and cost effectiveness.

The main purpose of budgeting is to create working process in Finance management. Budgeting helps to organization to plan expenditure and income.

It can always be viewed from the professional opinion of Dr. Gourh. In my case the most important thing is about reducing psychological stress and get more clarity to pivot. I also noticed a benefit of transforming some expenses to a total new project or a specialized entreprise within the main brand ecosystem and with that we can foresee more opportunity and keep improving.

The main purpose of budgeting is to create working process in Finance management .

Budgeting is very crucial to the growth of an organization and also helps to disburse or allocate funds to key potential projects for sustainability and growth.

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

We are implementing a project on SEXUAL REPRODUCTIVE HEALTH, our donor begins their funding form November 1st, we normal present the draft for approval.

Budget is the wallet of the organization/country, and empty wallet is bad thing. We don’t have necessary to take utmost care and organization of our personal wallet, but budget is the other thing. Good and standardized budget is important if we want our top managment to achieve good results, for what we need harmonius communication between sectors on the long term plan. After all the activities for gathering and using resources are done we can evaluate our results.

Budget is the wallet of the organization/country, and empty wallet is bad thing. We don’t have necessary to take utmost care and organization of our personal wallet, but budget is the other thing. Good and standardized budget is important if we want our top managment to achieve good results, for what we need harmonius communication between sectors on the long term plan. After all the activities for gathering and using resources are done we can evaluate our results.

A proper and a standardized budget system will allow you to determine whether there is enough fund for the project. A standardize budget system also help in prioritize the spending and focus only on the things that require agent attention. Proper budgeting system will enable the organization to identify available capital, provides an estimate of expenses and also anticipates income to be generated. It can also be used to measure the performance of the project and control of finances of the organization. The budgeting is also important for motivation.

Having an organized budgeting procedure minimizes risks to management of under performance of projects due to poor forecasts. Poorly planned and developed budgets make implementation difficult to achieve and hence long term losses to companies in terms of funding and clients.

It is valuable to have a standardized system for creating a budget because it helps organizations to be more prepared when calls come. When an NGO knows the traditional expenses for a project, it can answer more efficiently to a call. NGO will have to adjust some expenses, but it will have a form to adjust. A standardized system for creating a budget is a financial planning tool, and it will help organizations to follow the expenses in a month, year and get feasible financial information.

In our personal lives, most of us understand the importance of planning our expenses. After all, it would be impossible to plan a vacation, rent a home, or even buy a meal without a small amount of financial planning. Each of us spends a part of each day consciously or unconsciously thinking about ways we would like to spend money and considering how much money is available to us.

Yet, the same people who confidently sign a purchase agreement for a home are often uncomfortable creating thorough budgets for their organizations. This is understandable but unfortunate. Indeed, while the basic task of budgeting—planning expenses and income—is always the same, creating a budget for your organization is much more complex than creating a budget for your household.

For one thing, the numbers are usually larger. An organization with several programs and many employees will most likely have significant income and many expenses. Depending on where your organization operates, there may be complex legal requirements. And, your budget will be viewed by many different types of people, each with different expectations

Budgeting gives proper direction of the organisation in its activities. controls expense and helps track and improve the finances

am taking this course because i want to lean more in budgeting but with the explanation the case study above by Dr Gourh my organization is going to gain insight in the three expenses which is the shared, the program and overhead expenses; and it important to have a well-defined process for budgeting.

the Purpose of Budgeting in my organization is to have a well design plan for the future for my organization not to run into financial loss.

The purpose of budgeting is to understand the plan and program and the financial implication of the organisation human resources, and financials and administrative.

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

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.

@Cyndimau
Having a standardized system helps an organization to reach its strategic goals by allowing management to plan and control major categories of activities, such as revenue, expenses and financing options. The organization will know more about budgeting correctly to avoid over budgeting or under budgeting.

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.