Leadership wk 13 dq 13 | BSN | Florida National University
Budgets are used by businesses, governments, and non-profit organizations in many different ways. There are several types of budgets that can be used in business, government and nonprofit organizations.
- Operating Budgets: These budgets outline the costs and income of an organisation for a certain period (usually one year). An example of this would be a hospital’s operating budget, which would detail the costs of providing patient care, salaries, supplies, and revenue from sources such as insurance payments and grants.
- Capital Budget: The capital budget is used for planning large-scale project, like the building of a brand new building or buying major equipment. An example of this would be a university’s capital budget, which would detail the costs of building a new research center or renovating an existing facility.
- Cash Budget: This type of budget outlines the organization’s expected cash inflows and outflows for a specific period. This ensures that an organization will have enough money to pay for expenses and bills when they are due. An example of this would be a small business’s cash budget, which would detail the expected cash receipts from sales and the expected cash disbursements for expenses such as rent, utilities, and payroll.
- Master Budget: This type of budget is a comprehensive plan that includes all of the organization’s budgets, such as the operating budget, capital budget, and cash budget. It provides an overview of the organization’s financial goals and priorities for a specific period. An example of this would be a nonprofit’s master budget, which would detail the organization’s overall financial plan for the coming year, including fundraising goals, program expenses, and overhead costs.
- A program budget helps to ensure that the resources allocated for each program are appropriate and effective. This helps ensure the appropriateness and effectiveness of resources allotted to programs. An example of this would be a city government’s program budget for public parks and recreation, which would detail the costs of maintaining parks, running recreation programs, and capital improvements to park facilities.