To budget or not to budget. It is the questions that companies are
asking their managers to consider. a Traditionally, budgets is the
proposed plan of action by management for a specific period. Used
for the current year or as a follow-up to the prior year ending
accounting cycle. a Budgeting is a help to managers by helping
departments to set goals , judge and measure performance or even
motive employees.
In the article it talks about how ineffective budgeting can be. GL
groups points out that they sway from using budgets. a Their
reasoning for this way of thinking was because budgets are inflexible
and can not be adjusted once that are set in place. Also, budgeting
can have an negative affect within a business. a For example, managers
may be force to think that their expense budget should be used in its
entirety even if it is not needed. Or it can lead to poor decisions made
to meet certain expense goals.
I agree with the decision made in the article to look at employees,
customers and operations to make decisions on where money is
spent. This will lead to placing monies within the business that will
provide the best outcome for the business. Answering the important
questions of timing, does it make sense, or what is the worst that can
happen. Not to budget.
Budgets Don't Work: Here's How Businesses Can Do It Differently by
mark Rygelski
