Budget Functions
Budget functions are the activities and processes that are used to plan, manage, and control the financial resources of an organization. They involve the development of a budget, the monitoring of budget performance, and the evaluation of budget results. Budget functions are essential for any organization to ensure that it is using its resources efficiently and effectively.
History of Budget Functions
The concept of budget functions has been around since the early days of business. In the 19th century, budget functions were used to help manage the finances of large companies. As businesses grew in size and complexity, budget functions became more important. By the mid-20th century, budget functions had become an integral part of business management. Today, budget functions are used by organizations of all sizes to ensure that their financial resources are being used in the most efficient and effective manner.
Comparison of Budget Functions
| Function | Description |
|---|---|
| Planning | The process of setting goals and objectives and determining how to achieve them. |
| Monitoring | The process of tracking budget performance and making adjustments as needed. |
| Evaluation | The process of assessing the effectiveness of the budget and making changes as needed. |
Summary
Budget functions are essential for any organization to ensure that its financial resources are being used in the most efficient and effective manner. They involve the development of a budget, the monitoring of budget performance, and the evaluation of budget results. For more information about budget functions, visit websites such as Investopedia, The Balance, and the U.S. Small Business Administration.
See Also
- Financial Planning
- Cost Control
- Cash Flow Management
- Financial Analysis
- Financial Modeling
- Financial Reporting
- Risk Management
- Capital Budgeting
- Investment Analysis
- Financial Forecasting
