ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Accounting => Topic started by: unmotivated on November 10, 2013, 05:22:54 pm

Title: Explain the purpose of budgeting and why it is beneficial for businesses.
Post by: unmotivated on November 10, 2013, 05:22:54 pm

^ Thanks guys

Title: Re: Explain the purpose of budgeting and why it is beneficial for businesses.
Post by: Damoz.G on November 10, 2013, 05:25:29 pm

Quote from: unmotivated on November 10, 2013, 05:22:54 pm

^ Thanks guys

2 most important things:
* Planning - Indicates future requirements of the firm. Relates to issues such as Loan Repayments, and whether the business will be able to meet these cash requirements and short-term debts as they fall due.

* Decision-Making - Provides a standard against which trading performance can be measured. It allows problem areas to be identified, and then correct action to be taken by the owner.

Title: Re: Explain the purpose of budgeting and why it is beneficial for businesses.
Post by: unmotivated on November 10, 2013, 05:28:08 pm

awesome, thanks! good luck tomorrow man youre gonna destroy it

Title: Re: Explain the purpose of budgeting and why it is beneficial for businesses.
Post by: shooterblitz on November 10, 2013, 05:28:36 pm

Budgeting can also prove as a pathway for the business, as it can provide with direction and a 'goal' as per say to achieve.

Title: Re: Explain the purpose of budgeting and why it is beneficial for businesses.
Post by: Damoz.G on November 10, 2013, 05:35:09 pm

Quote from: unmotivated on November 10, 2013, 05:28:08 pm

awesome, thanks! good luck tomorrow man youre gonna destroy it

Thank you! :D

All the best for you as well - You will be fine! :)