Turning budgeting pain into budgeting gain

Turning budgeting pain into budgeting gain
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Turning budgeting pain into budgeting gain
In order for one to be financially successful, there is a need to come up with a budget and live according to it. A budget helps one to avoid unnecessary spending. One should consider his/her personal earnings in order to come up with a good budget and to avoid living beyond one’s means. On the other hand, budgeting accelerates wealth. The base of any financial plan is a budget which is solid. There is a misconception that having a budget prevents one from enjoying with his/her money but this is not so because budgeting ensures that one knows and understands where and how the money earned is being spent and hence will be able to plan for the future (Martin, 1997).
Budget pain is as a result of various problems. These includes, many managers failing to be accountable to their own budgets, some of the managers do not take part in the development of the budget, others do not even comprehend the process of budget making and the requirements of the budget, there is a problem of managers not meeting deadlines and the final problem is that some managers give numbers which are unrealistic. Martin (1997) maintains that there is very little attention that is paid by many departments when a budget is being prepared and this is the major reason why budget making is seen as a challenging task in many companies and organizations.
In conclusion, according to Epstein (2000), a budget can be seen as a tool for managing cash flow. Companies use budgets to forecast and help them in adjusting due to fluctuations in the markets and hence are able to manage their businesses. However, budgeting technology needs to be upgraded so that the company saves time and money and also increase accuracy due to automation. However, when budgeting tools are impr...