Why Budgeting and Sound Financial Practices are Crucial

(Beyond) Budgeting
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Tim Jones
Consultant, United States

Why Budgeting and Sound Financial Practices are Crucial

Folks, all you have to do is look at the US debt and look at the fact that we have lived "beyond our means" for sometime now. You can't continue to operate without a plan for your money! It gets you in trouble as a household or as a country! The US is $16 trillion in debt!
Companies go bankrupt everyday because they operated on the assumption that a budget wouldn't work, was too time consuming, too much bureaucracy, etc.
It's time that we have professors in our universities that have experience in the real world and quit hiring these "financial philosophers" who operate on "theory" and have no idea what it is like to operate within limits, meet a payroll, develop realistic five-, and ten-year plans, etc.
We still have to operate according to sound business principles. Just because the airplane has been invented doesn't mean that gravity has somehow ceased to exist or apply to us!

  Isaac Asante
Financial Consultant, Ghana
 

Why Budgeting is Important

Every management tool has weaknesses. The point in budgeting is to count the cost before going into an activity at the s...

  Sergey Baltin
Manager, Russian Federation
 

That's Simple - Its a Drug

I totally agree, but this is from the point of view of non-government person. If you are in a government structure - I b...

  Tim Jones
Consultant, United States
 

That's Simple - It's a Drug

@Baltin: you are right concerning politicians. You are correct in the electorate being a drug. Getting better as a count...

  Benjamin Ogudoro Nkemakolam
Financial Consultant, Nigeria
 

Budgeting Still Relevant

The relevance traditional budgeting depends on the method of application. Rolling budgets can solve most of the weaknes...

  Dario Gragnani
Manager, Italy
 

Why Budgeting is Useful

Budgeting is useful. 'You cannot manage what you do not measure'. Budgeting requires to analyze and decide. It is part o...

  Andyson Mupeta
Student (MBA), Zambia
 

Budgeting is Still Useful

Traditional or not it, budgeting remains a helpful means of operationalizing the company activities so these can be trac...

 

More on (Beyond) Budgeting:
Summary
Forum
Budgeting Must Be Flexible and Auditable
Financial Measure / Budgeting is no Longer Dominant
Budgeting for Guidance, not for Control
'Beyond' Budgeting -- Call it Whatever, It's Necessary
Add Rolling Quarterly Forecasts to Traditional Budgeting Process
Budgeting Has Become the End Instead of a Tool to an End
Budgeting is the Essence of Good Management
Budgets Should Facilitate Communication, Collaboration, Cooperation, and Coordination
Can we Use Beyond Budgeting in Entrepreneurial Companies?
What is a Budget? Definition
Budgeting in Uncertain Business Climate
Budgeting Must Be Integrated in Strategic Process
Rolling Forecast in Beyond Budgeting
🔥Value Based Budgeting
👀Why Budgeting and Sound Financial Practices are Crucial
Lump Sum Budgeting with a Cushion
Best Practices
Weaknesses of Traditional Budgeting
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(Beyond) Budgeting
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