Running Head: BUDGETING 3
Wema self-Organisation is a Christian relief, development and advocacy organisation dedicated to working with children, families and communities to overcome poverty and justice. We started this organisation to promote human transformation, seek justice and bear witness to good news of the kingdom of God. We also help children understand their rights, they have duties to perform towards their families and communities. Wema Self Organisation is guided by six basic core values. They are; we are Christian; we are dedicated to the poor; we value people; we are stewards; we are partners; we are responsive. The annual budget is US$300,000. We have employed five members in our organisation to facilitate easy running of our projects. We have also volunteers who are willing to help facilitate our project and make it successful.
We have given out bed sheets, food, medicine and education materials to the needy children. We have started education to facilitate education to the street children. We have also started substance farming by growing crops like beans, maize, sorghum and peas. We have educated farmers on how to keep livestock’s like sheep, goats and lamas. The farmers do not make enough and there is desperate need for clean water, sanitation, more awareness of hygiene and more local health care.
Master budget is an aggregate of a company’s individual budgets designed to present a complete picture of its financial activity and health (Banks, 2008). Operating budget is a forecast and analysis of projected income and expenses over the course of a specified time period. Cash flow is a budget is a means of projecting how and when cash comes in and flows out of a business within a specified time period.
Financial budgets presents a company’s strategy for managing its assets, cash flow. Income and expenses. Static budget is a fixed budget that remains unaltered regardless of changes in factors such as sales volume or revenue. A plumbing supply company, for example might have a static budget in place each year for warehousing and storage, regards on how much inventory it moves in and out to increased or decreased sales.
Zero based budget is a type of budget that implies managers need to build a budget from the ground up, building a case for their spending as if no baseline existed – to start at zero base and every function within an organisation is analysed for its needs and costs (Bielefeld & Schneider, 2014). A performance budget is a type of budget that reflects the input of resources and the output of services for each unit of an organisation. This type of budget is commonly used by the government bodies to show the link between taxpayer funds and the outcome of services provided by federal state or local governments.
The benefits of budgeting are; gives control over your money – a budget is a way of being intentional about the way you spend and save your money (Penning, 2012). Also keeps focused on your goals – your money goals – you avoid spending unnecessary on items and services that do not contribute to attaining your financial goals.
Banks, A. (2008). Budgeting. McGraw-Hill PAVE.
Bielefeld, B., & Schneider, R. (2014). Budgeting. Basel: Birkhäuser.
Penning, A. (2012). Budgeting. Osborne.