It's Time To Listen to What Your Budget Can Tell You
As a business owner you may be challenged with identifying the best plan for your business structure. When it comes to budgeting, let's be clear that it is different when compared to a long-range planning. One important difference is the time period involved. The maximum length of a budget is usually a year, and budgets are often prepared for shorter periods of time, such as a month or a quarter. In contrast, long-range planning usually encompasses a period of at least five years.
A second significant difference is in emphasis. Budgeting focuses on achieving specific short-term goals, such as meeting annual profit objectives. Long-range planning, on the other hand, identifies long-term goals, selects strategies to achieve those goals, and develops policies and plans to implement the strategies. To choose a strategy that will work best for your business starts with being realistic as possible. A budget can be used to indicate some of the following:
The final difference between budgeting and long-range planning relates to the amount of detail presented. Budgets, can be very detailed. Long-range plans contain considerably less detail. The primary objective of long-range planning is to develop the best strategy to maximize the company's performance over an extended future period.
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Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.