The budgeting process.

The Budgeting Process
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The Budgeting Process
The budgeting process is a fundamental part of every successful company. Skillful budgeting is the central component of success as it sprightly impacts the bottom line. Budgeting, is thus, crucial in the current economic environment where companies are battling with matters including cost reductions, headcounts, and pricing pressures, which have not existed for some time. The primary goal of the budgeting procedure is to increase organizational revenues through efficient utilization of funds. My article will use Budgeting Best Practices authored by Alison Adams and John Magee to explain the benefits of the budgeting procedure to a firm.
The article, Budgeting Best Practices, is mainly based on a CPA firm that issues financial services to both the government and private organizations (Magee & Adams, 2010). It deliberates upon the information concerning the best budgeting practices and their significance to the corporations’ business operations. The article cites the importance of budgeting for the accomplishment of organizational activities, chiefly aimed towards the growth of profits and efficiencies of the company. The report also connotes the importance of budgeting process to worker benefits. Furthermore, the article discusses the compilation methods in budgeting.
The article holds a great significance to the topic of discussion as explains the process of budgeting. For instance, the piece highlights the methods through which budgets are created and monitored, citing numerous ledger-based software with basic budgeting templates, stating Excel as the tool commonly used (Magee & Adams, 2010).

The article also advices on how frequent a budget should be revised: forecasts should regularly be prepared to record variables that change after making a budget and should be used when predicting future outcomes. However, the estimates should not affect the initial budget that must remain unchanged. The article is therefore relevant to this topic.
Even though budgeting may not be an easy work, making an accurate one and monitoring frequently is the best means of keeping your company running successfully (Magee & Adams, 2010). A well prepared and monitored budget is an essential organizational guide.
Reference
Magee, J., & Adams, A. (2010). Budgeting Best Practices. CPA Prac. Mgmt. F., 6, 10.