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Response to this 75 words and 1 reference  Creating a budget allows for companie

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Response to this 75 words and 1 reference 
Creating a budget allows for companies to “plan for financial needs” (WESST) and keep track of the revenues and expenses as they are projected and then accrued. Companies can then make decisions and plans for the daily operations and future of the company. The budget then, allows the company to have a benchmark in place for a period of time such as a year which can be reviewed monthly for overages/shortages. This time allows managers to analyze the budget and make adjustments accordingly now in the moment instead of waiting until the end of the year. This adjustments can reflect the latest news or economic downturn and can help a company stay in business instead of waiting until they are in bankruptcy. When Covid-19 hit the United States and the government was shutting down businesses, managers ha to act fast in their decisions and adjustments for the year. There was no way they could have waited until the end of the year to refigure all of the projections for revenue and expenses.
I think this topic of having a budget and plan in place is a main point in this class and in our lives. Creating that budget to know where you stand financially allows managers to make informed decisions on what will work best for their company. It also gives them a reference point going forward that they can refer to daily for all of their decisions as long as it’s updated with current information. My husband and I have a monthly budget that we start with for what we want to purchase and set into savings. We review it at the end of the month, but it’s checked daily for expenses and remaining net values in order to make sure all the expenses are paid and there is no overdraft charges. Plus, we like knowing on a Friday night that we have enough money for a pizza or going out to dinner

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