Budget management is the analysis, organization and oversight of costs and expenditures for a business or organization. Managing a budget requires adhering to strict internal protocols on expenditures. A well-managed budget allows for continued smooth operations and growth.Know More
A budget normally allocates specific amounts of money to various items that require funding. A budget also keeps track of incoming profits. Managing any budget requires a constant balancing act of maintaining good levels of cash flow without going over the budget limit. When a budget is out of balance, the manager must find ways to increase or reduce spending in certain areas.
A company relies on good budget management in order to operate on a daily basis without going into chaos. Bad management of money often leads to severe shortfalls in cash and can put a business in real jeopardy.
A typical budget allocates funds for payroll, general expenses, equipment, services, taxes and miscellaneous expenditures. Careful decisions have to be made regarding the amount of money spent each month on specific items. For instance, a manager may have to postpone purchasing a new piece of equipment that has the potential to help the company produce more in order to make payroll. Payroll is a budgetary expense that cannot be spent arbitrarily or sacrificed for other costs. Instead, the manager must project how long it is expected to take to acquire the necessary funds to purchase the desired equipment. This type of decision is common in budget management.Learn more about Financial Planning
Administrative management refers to a process within an organization whereby information is stored, analyzed and distributed among its members to ensure smooth business operation. Additionally, it entails the control and coordination of certain business aspects and the people involved, allowing it to manage the support operations within an organization.Full Answer >
Operation management ensures that an organization is conducting business at peak efficiency and ability. Operation management includes the development and use of resources that are necessary for a company to deliver goods and services to its customers.Full Answer >
Personal consumption expenditures refer to the measure of price changes in consumer goods and services. Personal consumer expenditures consist of the imputed and actual expenditures of families; this data is the basis for forecasting inflation. The calculation also consists of information pertaining to services, durables and non-durables. In essence, the personal consumption expenditure model is an all-inclusive measure of goods and services consumed by individuals and families.Full Answer >
To write a human resource plan, a human resource manager must analyze the external and internal factors affecting a business and use the analysis to predict the future demand for labor in an organization. A manager creates the plan after comparing the demand and supply forecasts to the current workforce.Full Answer >