This response should be addressed to Olivia Jones with minimum 100 word response
When running a business it is important to carefully review and plan finances. A budget should be an outline on how the company expects to spend their money by identifying current available capital, estimates expenditures and anticipates revenues. A budget makes sure that capital is not wasted on unessential items. Its nice to think of a budget as a financial road map for operation. A budget can help with performance evaluation and efficiency.
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Bottom line profits is when all profits have been accounted for and the remainder is either negative or positive. It is the net income reported at the bottom of the income statements. Income statement is a financial report that shows an organization’s profitability over a period of time (Ferrell, Hirt, Ferrell, 2009). It is the outcome of all the work of the business. Bottom line can be improved by growing revenues and increasing efficiency.
Properly budgeting is important because it ensures that you will always have enough money for the thing you need. Balancing your expenses with your income is a simple way to explain budgeting. Working on a budget has been really helpful when it comes to saving for my first house. Monitoring my budget has helped me eliminate and identify wasteful expenditures. There is little to no surprise with a budget, it has helped decrease my stress levels. Budgeting for the house has gave me financial clarity.
This response should be addressed to David Carter with a minimum of 100 word response
Running a business requires owners to plan and review their finances. Many businesses use accounting for identifying, measuring, analyzing, and reporting their financial information. Budgets represent a detailed analysis of how a business expects to spend money in the future. A business owner may create an annual budget to outline the expected needs of each department in the business. A major benefit to using a business budget is the ability to limit how much money is spent on certain operations. Budgets allow businesses to have a financial roadmap for business operations. Owners review previous year’s budgets to determine how well they followed the guidelines. Budgeting for future growth opportunities ensures there is capital on hand when needing to make a quick decision for expanding business operations (Vitez, 2017). The bottom line in any business is their net income after all expenses have been subtracted from their revenues, or monies earned (Ferrell, Hirt, & Ferrell, 2009).
I find that working with a budget can be easy or hard. It all depends on how serious you are about maintaining your budget. When I was an area manager, I had a budget annually to get supplies, advertisement, employees, and other things. It takes time and planning to stay on budget. Sometimes you must take away from one area to add more to another.