Planning and budgeting are essential for an organization's success, as they allow a company to set goals and understand its financial standing. Capital budgeting in particular is vital for healthcare financial management, as it enables evaluation of which projects are worth investing in to further the company's future, while avoiding costly mistakes that could lead to bankruptcy if done incorrectly. Capital budgeting is the most important topic covered for healthcare financial management due to its impact on an organization's long-term prospects.
Response 75 words and 1 reference Planning and budgeting are ver.docx
1. Response 75 words and 1 reference
Planning and budgeting are very important for an organization's
success. Without these two a company cannot succeed. Planning
allows a company to reach its goals, it provides us a path to
follow to reach the goals and success. Budgeting allows a
company to see where they stand financially and what they are
allowed to do and what they cannot do. Budgeting allows the
business to plan for expenses and projects. It also gives us an
insight into what needs to be done to reduce costs or plan
accordingly to reach company goals.
Out of all the topics we covered throughout the term, capital
budgeting is the most important to healthcare financial
management. Capital budgeting allows us to see what projects
are worth investing in and which ones we should stay away
from. However, if done incorrectly the company can lose a
significant amount of money and even go bankrupt. Overall
capital budgeting is the future of the company, and that is why
it is the most important