Accounting and Budgeting
Name
Institution

Accounting and Budgeting
Accounting is a significant component of any business organization’s budgeting process since it helps in detailing expenditures and revenues that should be considered in the budget. Accounting plays a significant role in tracking the financial details of a business organization, checking the funds inflows and outflows for a given financial period (Warren, Reeve, & Duchac, 2013). In addition, accountants help the management of a business organization in identifying negative and positive implications of the budget plan to ensure consistency of the budget plan with the financial constraints of the organization. Integrating accounting principles in the budgeting process ensure objectivity of the budget plan and enhance the performance of a business enterprise (Needles, Powers, & Crosson, 2009). Similarly, accounting helps in detailing the net value of the budget inflows and outflows in maximizing the wealth of the investors. This is done by illustrating the net present value of the budget plan before undertaking a proposed project. Consequently, the process helps an organization in preventing potential losses by scrutinizing flows inherent in the budget developed.
Role of Management in Budgeting Process
The management, as the custodian of all organizational assets and strategic plans, plays significant role in budget preparation since it ensures consistency between the budget plans and the expected future value of the firm. One of the responsibilities of management during the budgeting process is to ensure that the activities included in the budget plan are core or relevant to the objective of the organization. Unnecessary and costly items should be identified by the management to ensure efficient implementation of the budget (Needles, Powers, & Crosson, 2009). Similarly, the management has a responsibility to ensure key operation components of the organization are adequately financed to allow a smooth future operation. In addition, the management has the responsibility of ensuring that the sources of the revenue identified are viable for the budget plan to be successful (Warren, Reeve, & Duchac, 2013).

References
Needles, B. E., Powers, M., & Crosson, S. V. (2009). Principles of accounting. Boston, MA: Houghton Mifflin.
Warren, C. S., Reeve, J. M., & Duchac, J. E. (2013). Accounting. Mason, OH: South-Western/Cengage Learning.