The Job Description of A Budgeting Manager

One of the most consequential cultivates that budgeting accounts for is the prepargondness function1. We pull up stakes be arguing for the importance of the homework function in the boilers suit budgeting activity and will be arguing for the more ways the budgeting planning function is coordinating with the comp any(prenominal)s strategic planning.First of all, the planning function in terms of budgeting refers to the planning activities that the familiarity, starting with the financial department, call for to (1) determine what the companys long-term system is, (2) determine what projects incur most added take to be to the company and (3) determine what priority these projects should flip.Lets refer to each of these steps in part and determine how they impact the budgeting strategy of a company. The long-term strategy for a company is essential in determining the overall intention of a company. For the long run, this may be increasing the volume of gross revenue or incr easing the market share or promoting the companys image. In any case, these differ in terms of the projects they will imply and the ways they will be affecting the budgeting strategy.For model, increasing sales will perhaps plainly include increasing spending on advertising and the promotion budget, musical composition promoting the companys image may include costly promotion campaigns that will sire a signifi appriset impact on the companys budgeting management.The second issue is a project portfolio management issue. The economic theory tells us that the resources are invariably limited, while the involve are not. Applied in this particular case, this path that we are always likely to conduct a greater reckon of projects we will wish to perform than the financial resources the company will take hold at a certain point.This is where the selection issue, corroborated with the budgeting strategy comes in the game. The teetotum management, working with the financial departm ent, will need to establish which are the projects that bring highest added-value to the company and spend the companys budget on those alone.The selection phase can only come hand in hand with a suitable planning of the budgeting activity. On one hand, we have the projects the company wishes to perform, on the other, we have the budgeting restrictions. In terms of budgeting planning, the company and the top management call for to image that projects deriving from the current selection will also have sources of financing. An example will right on elucidate this perspective.We will simply take a software project. In the beginning, the primordial activities refer to selecting the working team and creating a project on which work will be done (following the customers requirements). On the other hand, while the initial part of the project is strictly relate to the programming stage, one mustnt ignore the fact that, after the project is completed, a tester also needs to be hired in hostel to test the projects performances. This means that the initial budgeting scheme will need to be created so as to include several other subsequent factors, factors that are likely to appear at a certain time in the incoming.Finally, the third phase of the selection phase, correlated with the budgeting procedures, involves deciding on the projects priority. This is fundamentally an issue of deciding which of the projects bring added value to the company and to the companys activities. This means that planning your budgeting policy also needs to consider the future plans in the company. If the company will want to develop different areas into the future, then the budgeting campaign needs to be designed so as to cover any future needs of the company. This is practically what the planning function in terms of budgeting refers to.The controversy we have previously presented practically comes forth so as to submit the close connection existing between budgeting and budget planni ng and the companys overall planning strategies. Indeed, the budgeting policies serve to help the company fulfill its long-term plans and projects, as well as short-termed ones. In this sense, the company planning strategy needs to be fully correlated with the budgeting planning, otherwise there will be no financial support for those plans.Among the management functions we already know or so we can also include the budgeting function because, in my opinion, all the others cannot properly function without it. You cannot have a successful planning or organizing inwardly a company without correlating these with the budgeting function, in order to obtain the realistic living of any project.Budgeting and planning go, in this sense, hand in hand, and you cannot really have one without the other in the company.