Process Analysis (Essay Sample)

Process Analysis Essay The preparation of the budget is an important factor in operating and managing the business. The process of the budget consists of various important steps and information. It is important to focus on financial operations, outcomes, and financial resources, managing and operating the budget. Budgeting is a complex process in an organization as it is based on various factors. Budgeting is not only completed with the plan but the implementing process is the key to success and achieving the desired goals. In preparing the budget, the important steps are estimating the income and expenses, setting up the financial goals, and implementing effective monitoring practices (Moradi, Mohammad Javad Kabir, Hamid Pourasghari, Seyed Jafar Ehsanzadeh, & Aidin Aryankhesal, 2023). The most important step in making a budget is the best mating of income and expenses. It is possible by estimating the influence of the flow of money in the organization. Estimation of influence outflow helps to maintain the future operations in the organization. Destination of income must be gathered from all sources such as Investments, sales, services, and other income streams. The basis of estimation is the previous records or the possible future events within the organization. In case the company earns a profit of 5% from the investment in the last year. The estimation of investment income must be around 5% under similar circumstances. Similarly, expenses must be studied in detail and allocated in terms of categories. All hands of expenses must be pointed out and estimated as per the requirement and previous experience. The second step is the financial goals that can only be set by estimating the correct expenses and income in the budget. A financial goal is an important factor that has to set up the road map in the budgeting process. Financial goals can be divided into the short-term and long-term. Used in the financial goals by estimating the revenue of the company. Revenue the company may increase or decrease due to the different variables such as demand, supply, competition, in market strategy. It is important to send the financial goals based on valid evidence. These goals must be achievable and a suitable road map must be set accordingly (Davydenko, Kolbuszewska, & Peetz, 2021). Constructing the budget is not an easy dance to complete. It requires time-by-time amendments as per the requirement. There are very important factors involved in setting up and implementing the budget process. It is ensured that artifacts involved in implementing the budget are suitable for the system to provide the desired Results. Implementing the budget is the most important function and it requires continuous monitoring by the skilled management. The management is required to continuously monitor the income and expenses of the organization and the expenses are giving the productivity as required in the budget. The most important problem in the budget implementation is the balance of payment. The income derived from the business operations in real must be equal to or nearer to the estimated budget. It will help to implement the budget correctly and achieve the desired financial goals (Moradi, Mohammad Javad Kabir, Hamid Pourasghari, Seyed Jafar Ehs...