Budgeting Memo Assignment Example | Topics and Well Written Essays - 750 words

Budgeting Memo - Assignment ExampleUpon questioning, I learned that people in charge of budgeting and procurement fork out to spend all of their budgets for alarm of losing it the next year. Perhaps you got that idea from government spending which has a totally different setting with a non-government agency such as ours. It is widely know that most government agencies are under pressure to fully expend budgets that are set to expire (Boris Angelov, 2014)I am not happy with this touch because you spend a penny the wrong notion of budgeting. The rush of spending at the end of the fiscal year is only costing the organization unnecessary expenditures and wasteful.Budget is hypothetical to be an allocation to ensure that there are enough resources to accomplish set of goals. It is defined as an estimation of revenue and expenses over a distributor point of specified time (Investopedia). For instance, if you have budgeted, $30,000 for training of personnel, and at close of the fiscal year, you have spent only $20,000 for the actual training this does not mean you have to think of ways to spend the balance of the budget. Necessarily, it should be treated as a savings and be returned to the Treasury. An approved budget does not mean that you have to spend it to zero. We should form the practice of returning balances because as you contribute to our fund balances, you are adding to the health of our company.From now on, the practice of spend all will not be tolerated. Each manager has to explain why there are balances/deficits from the budgeted amount, and if there is a balance, the need to spend it should be rightly justified. Please be informed that I will not approve expenses not tied up with our goals but will commend managers who are efficient in their surpluses.If you business organization of losing your budget for next year, I will propose to our Board of Directors to use Zero budgeting wherein every expenditure is justified, or each spending starts with a n assumed cling to of 0 (Accounting Tools, 2014).