I need a discussion repsonse to my peers discussion post. Please see below
Budgets are critical to a business. If used appropriately, they help guide the strategic plan to keep it moving forward. Reality is, not every company uses budgets correctly. Prior to starting one position, I asked to see the budget. What I received from Human Resources only focused on the Foundation endowments and not any operational/fundraising costs. Since I was starting the following week, I didn’t seek more information. To my dismay, that was the only budget. They didn’t have an operational or fundraising budget. One of my first items was to work with the staff to put together a budget for the Foundation. The staff of five all had input into making the budget and owned their part. It was an eye-opener for them especially when it came to understanding the dollar amount we needed to raise just to cover operating expenses much less to support the hospital’s mission. The finance department worked with us and appreciated what we did. (I’ve also had great experiences with hospital budgets and refer to one in the other question.)
Certainly budget is a very important element that is essential for successful functioning of any firm. It drives the company in correct path and helps in meeting the expenditures of the firm. If planned properly budget even helps us overcome risks and problems. Even in healthcare industry which is mainly service oriented budget helps in meeting the requirements of people efficiently and on time. Hence budget is a powerful tool of the company which helps in running of the firm and being successful.So every firm must have a budget and it must be revised at regular intervals to meet the requirements.