Care System Budget

Care System Budget

Importance of a Workable Budget

The importance of a workable budget is quite high for most of the organizations. The reason is that the workable budget provides the overall financial situation of the company. It helps company to have a planning for the revenues and expenditures as well. The basic equation in the calculation of budget is Cash Inflows- Cash Outflows. When the cash inflows are high, the company is having a surplus amount. On the other hand, when the cash outflows are high, the company incurs a deficit in the Budget.

In the case of Care Safe Foster System, they need to emphasized importance on having a workable budget. Working Budgets are essentials to an organization; not only do they allow for the business to have a strict spending limit but it is also what keeps the organization going as long as it can. A workable budget allows for the agency to meet financial goals and objectives while also meeting the financial responsibilities of the organization. The workable budget also helps to address the accountability factor. The record of all expenses matters for the company. Secondly, the biggest reason because of which workable budgets is important because they assist the company in setting goals for the future. Dr. Drexel needs to take this factor seriously and must exert maximum efforts in this regard in future.

Steps required increasing the size of Care Safe's surplus

There are many steps which are needed to increase the size of Care Safe's surplus in the Budget Statements. The four methods that can help the company in increasing their surplus are:

Taking advice from the financial experts on important matters of the company.

The increase in the low paid workers for performing small administrative tasks.

The training of the workers for performing multiple tasks.

The downsizing of those employees who were not contributing much towards the organization.

The first step that Care Safe needs to adopt is to have consultation with the Financial Managers who can provide their valuable advice in this regard. The serious attention should also be paid on time factor. The combination of the tasks would not only help the company in saving time but costs as well. The company can only have an increase in the revenues when the costs would be reduced as well. Similarly, those options that can be beneficial for the company must be exercised without causing any delay. The Company needs to increase the administrative duties of the employees working in the organization. The increase in the shift work of the low paid employees would also create an impact on the company in saving costs. Though, the motivation of performing administrative assistance would be lower but on the other hand, the job satisfaction would increase to a very large extent because of less time to perform administrative duties. The workers can go through rigorous training for multiple tasks and divide their time accordingly. In this way, the administrative costs would decrease to a ...