Budgeting Process Comparison
Different Budgeting Processes
| ZERO-BASED BUDGETING PROCESS (ZBB), | PLANNING-PROGRAMMING BUDGETING SYSTEMS (PPBS), | SITE-BASED BUDGETING. | |
| This is budgeting process that is used where all the expenses must be agreed upon for every new dispensation. It starts from base number of zero and each activity in an organization is evaluated for its costs and needs (Touche et al, 2013). | This is a budgeting process that emphasizes on the need for creating a good connection between planning and budgeting (Johnson, 2006). | Site based budgeting is a budgeting process whose core responsibility is to involve persons who are concerned with making decisions and are the people to be affected by the decision directly (Owings & Kaplan, 2012). It more personalized in nature as compared to the other two budgeting concepts. | |
| PROS It is flexible and specific to the operations that are to be carried out. It lowers the cost and provides a prudent execution of the operations. | PROS It is not tasking in regards to assess programs since costs are connected to the final outcome. It is easier to make changes in regards to projects that are of more urgency and priority. It has sizeable and manageable budget units (Johnson, 2006). | PROS promotes correlation there is more effective spending There is equitable of resources. | |
| CONS This technique demands a lot of resources and there is also a chance of exploitation and by highly competent managers. It is more inclined to short term planning hence not suitable for long term planning (Touche et al, 2013). It is characterized by bureaucracy. | CONS It is usually affected by time as a result of poor time management. There is need for specialization. It is prone to conflicts. There is a lack of control(Owings & Kaplan, 2012) . | ||
| Circumstance When Appropriate It is appropriate in financial planning of the public sector and government departments. | Circumstance When Appropriate It is important in both public and private sector especially when long term planning is to be considered. | Circumstance When Appropriate It is appropriate in a decentralized form of system where the decisions are to be made from the grass root level. | |
Differentiate The Budgeting Process For A State-Supported Institution Compared To A Charter School Or Non-Profit Organization.
In regards to budgeting process for a state –supported institution for instance a university there is a series of processes that are undertaken when preparing the budget. However this may differ from one institution depending on the activities that are carried out by the organization in question (Touche et al, 2013). Writers who offer financial statement analysis assignment help at Edudorm essay writing service notes that there is a lot of consultations and forecasting in order to know how to allocate resources. A lot of research, comparison and calculations are undertaken by financial experts as regards to the projects that are to be funded and whether such projects are viable.
Estimated figures towards projects to be undertaken are debated upon in order for them to be approved and enforced. After the estimates are agreed upon they are passed on as the proposed budgetary funding for a particular in a government controlled or supported entity. Experts who offer capital budgeting assignment help at Edudorm essay writing service indicates that it is important that the budgeting process is guided by a certain set of regulations that need to be followed strictly in the making and implementing of the budget. The funds used to fund government funded institutions are from tax collected from the public
The budgeting process for a nonprofit organization or a charter school differs from the one of government supported institution. The funded to be directed to the charter schools and nongovernmental institutions are not obtained from tax but from the stakeholders of the charter school and grants from international organizations in the case of NGO’S (Touche et al, 2013).
Reference
Touche, B. L., Opkin, M., & Halpin, J. (2013). The budget-building book for nonprofits: A step-by-step guide for managers and boards. San Francisco, Calif: Jossey-Bass.
Johnson, D. (2006). Thinking government: Public sector management in Canada. Peterborough, Ont: Broadview Press.
Owings, W. A., & Kaplan, L. S. (2012). American public school finance. Belmont, Calif: Wadsworth.
Touche, B. L., Opkin, M., & Halpin, J. (2013). The budget-building book for nonprofits: A step-by-step guide for managers and boards. San Francisco, Calif: Jossey-Bass.
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