passage require analysis and breakdown

Budgeting Process is the tactical implementation of a business plan. To achieve the goals in a businesss strategic plan, we need some type of budget that finances the business plan and sets measures and indicators of performance. (Corporate finance 2020).

A Budgeting plan is very important to make correct decisions and benefit the organization. There are four types of budgets; Operating, Capital, Balance sheet, and Cash flow budget.

Every organization, big or small has to have a certain budgeting process. I currently work with MassMutual, a life insurance company along with other types of insurance such as disability , ltc, and annuities. being a well known and successful company for over 160 years, MassMutual continuously tries to match the current strategies and developments required to succeed. This requires a well managed budgeting system to ensure the company's direction and not be impacted with volatility of the market as much. Last year MassMutual started an initiative that contains sub initiatives to reach a certain goal with policy owners on records. This required adjustments such us reduction in non-essential projects, more development hours towards the main initiative plans, reductions in any and all non-essentials costs to help reach both number of policy owners, and total company revenue and worth by its 175th anniversary. Within this example, The four above budgeting plans were used in the correct order to ensure the correct direction of the company's future.