There are several key points that we must consider when looking at budget ownership both during creation
Question:
There are several key points that we must consider when looking at budget ownership both during creation and during implementation. This has a direct correlation to our discussion: the authority to make decisions about company assets (cash, spending, buying more assets, etc.) True, accounting is generally the keeper of the numbers and plays a huge role in assembling the information into the "pretty" format of a budget. However, all the data that drives the budget is actually caused by ACTIONS of the company and management.
Thus, they are truly the team that is responsible for the budget's creation and later, responsible for the variances. Accounting has a huge role in facilitating all of this and ensuring everyone has the right information to make good decisions. Accounting is not, however, the sole owner of a budget. This is a fairly common misconception in the 'real world' in my experience.
1) What actions do you suppose management can take in the creation and support of our budget throughout the year?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill