4 Reasons For Rational Use Of The Budget

We must make budgets, especially those who undertake certain duties and are responsible for the results (no matter what departments they are responsible for, such as profit centers, cost centers, marketing centers, business units, business areas or subsidiaries, etc.) should use this tool.

The reasons for this are described in detail below.

(1) budgeting is the best tool for surprises and rich managers, because they can arrange all plans in a systematic way and deploy their work around them.

For lack of experience.

Budgeting is the best tool for them to understand the business and their own field of work.

From scratch

Budgeting is probably the best way to get people to understand and understand the business characteristics, relationships and "legality" of an enterprise.

Unfortunately, in the vast majority of companies, new employees have totally ignored this aspect when they receive induction training, and the reasons for that are not clear.

Although other skills acquired by the new staff in training are also very important, only when they really begin to prepare a budget and their budget is rejected by two or even three times, because we can not make the right preparation at the beginning, can we say that they really have some knowledge in this field.

(2) it is the best tool for configuring core resources, especially the allocation of human resources. Budgeting is basically the only tool for increasing output efficiency of resources.

(3) it is the best tool for planning and coordinating all activities in a certain field or whole company.

If there is an obstacle to the interaction between part and the whole, we often attribute this problem to an organizational problem and redress the staff, but in fact it is rarely an organizational problem.

Compared with the adjustment of the whole organizational structure, the budget as a coordination tool may be better and simpler.

(4)

It is the best tool to integrate a department's employees, including its managers, into the whole organization.

Generally speaking, convergence is a topic of constant discussion and is regarded as a topic in corporate culture.

Employees should identify with their enterprises, enterprises should become a "big family" and so on.

However, so far, only a few companies have thought of using the budget as an integration tool.