BudgetExpenditure analysis Assignment Example | Topics and Well Written Essays - 500 words

BudgetExpenditure analysis - Assignment Example While this may be possible in many organizations, in Monroe county Red Cross, it might not be fully possible especially because of the nature of management of the organization. To start with, most of its incomes are from donations and other incomes of the same nature. It may be difficult to establish exactly what amount is spent in preparation activities. Moreover, the organization is more of a charitable organization concerned with offering services and not profit maximization. All in all, expenditure analysis must be carried out more so to convince well wishers and donors that their funds are being spent in a good manner. In Monroe county Red Cross, the process often takes four main stages which are dependent on one another. For a comprehensive summary of expenditure analysis, it ought to start at the budget preparation stage. Here all the relevant factors are taken into consideration. It is in the process of budgeting that speculations of spending are made. Despite the fact that in many instances these speculations are not accurate, they give the management a rough idea of the likely range of expenditures. Though it is often overlooked by many institutions including the Monroe county Red Cross, expenditure analysis ought to start at this point. The items in the budget ought to be reviewed and confirmations made on whether or not they are likely to cost as much as stipulated in the budget. After the process of budget preparation, approval needs to be done. In many instances and many organizations, this step is the where the budget expenditures are analysed. The purpose of this step is to eradicate alien expenditures that may be fixed to acquire money in unscrupulous ways. Depending on the views of the management and the urgency of the expenditures, they may be approved or rejected in the budget. This is still some form of expenditure analysis. After the approval