The Job Description of A Budgeting Manager

One of the most important functions that budgeting accounts for is the formulation function1. We willing be arguing for the importance of the cooking function in the overall budgeting activity and will be arguing for the many slipway the budgeting planning function is coordinating with the caller-outs strategic planning.First of all, the planning function in call of budgeting refers to the planning activities that the beau monde, startle with the financial department, needs to (1) determine what the corporations long-term schema is, (2) determine what bears bring most added prise to the company and (3) determine what priority these reckons should have.Lets refer to each of these steps in part and determine how they impact the budgeting strategy of a company. The long-term strategy for a company is essential in determining the overall intention of a company. For the long run, this may be change magnitude the volume of sales or increasing the commercialize shargon or pro moting the companys image. In any case, these differ in terms of the projects they will imply and the ways they will be affecting the budgeting strategy.For example, increasing sales will perhaps only include increasing spending on advertising and the promotional material budget, while promoting the companys image may include costly promotion campaigns that will have a significant impact on the companys budgeting centering.The second issue is a project portfolio management issue. The economic theory tells us that the resources are always limited, while the needs are not. utilize in this particular case, this representation that we are always likely to have a greater itemize of projects we will wish to perform than the financial resources the company will have at a trusted point.This is where the selection issue, corroborated with the budgeting strategy seminal fluids in the game. The top management, working with the financial department, will need to establish which are the p rojects that bring highest added-value to the company and spend the companys budget on those alone.The selection phase can only come hand in hand with a proper planning of the budgeting activity. On one hand, we have the projects the company wishes to perform, on the other, we have the budgeting restrictions. In terms of budgeting planning, the company and the top management needs to ensure that projects filiation from the current selection will also have sources of financing. An example will by rights elucidate this perspective.We will simply take a software project. In the beginning, the primordial activities refer to selecting the working team and creating a project on which work will be done (following the customers requirements). On the other hand, while the initial part of the project is strictly related to the programming stage, one mustnt ignore the fact that, after the project is completed, a tester also needs to be hired in order to test the projects performances. This means that the initial budgeting scheme will need to be created so as to include several other subsequent factors, factors that are likely to appear at a certain time in the future.Finally, the terzetto phase of the selection phase, correlated with the budgeting procedures, involves deciding on the projects priority. This is basically an issue of deciding which of the projects bring added value to the company and to the companys activities. This means that planning your budgeting policy also needs to consider the future plans in the company. If the company will want to develop different areas into the future, then the budgeting campaign needs to be designed so as to cover any future needs of the company. This is practically what the planning function in terms of budgeting refers to.The argumentation we have previously presented practically comes forth so as to demonstrate the close fellowship existing between budgeting and budget planning and the companys overall planning strategi es. Indeed, the budgeting policies serve to help the company meet its long-term plans and projects, as well as short-termed ones. In this sense, the company planning strategy needs to be fully correlated with the budgeting planning, otherwise there will be no financial support for those plans.Among the management functions we already know about we can also include the budgeting function because, in my opinion, all the others cannot properly function without it. You cannot have a successful planning or organizing within a company without correlating these with the budgeting function, in order to obtain the realistic backup of any project.Budgeting and planning go, in this sense, hand in hand, and you cannot genuinely have one without the other in the company.