Importance of Budgeting in Schools.

  

Date Posted: 11/14/2012 4:32:43 PM

Posted By: jullieflavia  Membership Level: Gold  Total Points: 2188

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The principal of the schools should be responsible for the preparations of the budget document. However, the head teachers need to consult the other relevant authorities and departments. The budget therefore should be a result of corporate efforts of all those concerned with the needs of their children.
Budgeting is important aspects that have and should be used in every activity. Some of these importance include;

a) Budgeting helps to ensure that we have correct estimates of revenue and expenditure.
b) Budgeting help us to spend as budgeted, that is, expenditure will be as per the budget.
c) Budgeting helps institutions to meet their objectives.
d) Budgeting forms the basis of accounting and therefore institutions become more efficient.
e) Budgeting makes it possible to provide equitable allocation of resources.
f) Budgeting helps to determine the quality and quantity of services in the institution or in an organization.
g) The budget itself confers authority to administrators or head teachers to collect and to spend money appropriately and effectively.
h) The budget ensures economic use of resources and for the appropriate projects that are needful to be funded.
i) Budgeting helps education institutions to achieve the purpose expected by the society.
j) Budgeting also cautions administrators or head teacher against unrealistic optimisms. In other words it helps to check on the kind of decisions that are made by the administrators.
k) A budget also forms the basis of future budgets. The plan of a budget will help to formulate and plan for the future budgets.
l) The budget will help in coordinating different units and departments towards general goals of the school.

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