Last Updated 13 Jan 2021

Accounting – Budgeting

Category Accounting, Budget, Money
Words 290 (2 pages)
Views 68

Firstly, accounting is the measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and public agencies. The terms derive from the use of financial accounts.

Accounting is the discipline of measuring, communicating and interpreting financial activity. Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated; for public companies, this information is generally publicly-accessible.

Budgeting is the specific plans for saving and spending income and these plans, or budgets, are essential for developing spending and saving priorities. Properly preparing a budget also serves as a reference to check how well money is being managed during a period by allowing managers to see actual revenues and expenses compared to budgeted revenues and expenses. Corrective action can be taken earlier in a period when revenue shortfalls or expense excesses are identified..

Order custom essay Accounting – Budgeting with free plagiarism report


Budgets and proper accounting, allow businesses to better utilize the financial resources available to them. To begin with, budgets and proper books of accounts help businesses operate within their means; that is, over the long term, budgets assist businesses in spending less money than they earn. Next, budgets help businesses achieve their financial goals by planning for the future and organizing money into categories such as income, expenses, and savings.

Conclusively, accounting and budgeting roles and benefits in planning and operation of an organization or business is not negotiable. Failure to adhere to the policy, procedure and management of a business through proper accounting and budgeting will lead to disastrous end of such a business


  1. Accounting, budgeting and policies and procedures. (by Edward J. Mcmillan).

This essay was written by a fellow student. You can use it as an example when writing your own essay or use it as a source, but you need cite it.

Get professional help and free up your time for more important courses

Starting from 3 hours delivery 450+ experts on 30 subjects
get essay help 124  experts online

Did you know that we have over 70,000 essays on 3,000 topics in our database?

Cite this page

Explore how the human body functions as one unit in harmony in order to life

Accounting – Budgeting. (2018, Nov 10). Retrieved from

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer