As an Emergency Department manager of a small community hospital, it is critical to understand that the budgeting process had to be conducted carefully and thoroughly. The main reason is the fact that small towns usually get a limited amount of funding or revenue, which is why the Emergency Department should primarily focus on essential instruments and expendable materials. Therefore, the budget planning for the following fiscal year should possess a clear and outlined goal, which is achieved by considering certain requisites.
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It is important to note that the overall process of budgeting is highly intricate and delicate procedure. It is mainly based on six elements, which are sound organizational structure, defined budget period, adequate statistical data, reporting system, consistent account platform, and regular auditing (Liebler, 2016). The given information components should be gathered in order to create a department budget for the next fiscal year. For the budget management system, operational budgets are basic, and financial budgets are calculated on their basis. Coordination between them is carried out by means of the conversion of quantitative indicators into sum. Plans for the production, consumption of resources, calculated using certain tools, are recounted by economists through planned prices to financial instruments (Buckmaster, 2018). Each operational budget is the result of serious analytical planning work, which can be decomposed into a large number of support forms, for which it will be the resulting report.
Lastly, there are no universal recommendations regarding the number of budgets in the enterprise. When choosing the number of budgets, it is important to consider the following circumstance. If an individual need to provide only the necessary minimum budget forms, this can be a set of three main budgets: income and expenses, cash flows and the budget on the balance sheet or forecast balance sheet. In addition, it should be noted that with total budgeting, these three forms will be the result of the entire enterprise.
Buckmaster, N. (2018). The crafting of budgets by accountants with users for enhanced acceptance in public healthcare. Australian Journal of Management, 43(2), 183-202.
Liebler, J. G. (2016). Management principles for health professionals. New York, NY: Jones & Bartlett Learning.