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Budgeting for Healthcare Professionals
- 3. content Today we will discuss about the- • Introduction • Definition • Purpose • Objective • Features • Principles • Classification • Types • Process • steps
- 4. CONT.. • Importance • Factors • Essential requisition for budget • Function • Advantage • Disadvantage • Limitations • Role of nurse • Summary • Conclusion • Bibliography
- 5. INTRODUCTION A budget is a financial plan to control future operations and results. Budgeting is a careful balancing act. It is a part of the planning process in any organization.
- 6. CONT.. The word budget is derived from old English word “budgettee” means a sack or pouch. Budget is a numerical descriptons of expected income and planned expenditure for an organization for a specified period of time.
- 7. DEFINITION *Budget – “Budget is a financial plan of the government for a definite period.” - According to Taylor “Budget is the numerical expression of the entire management process for a fixed period of time.” - According to Anonymous
- 8. CONT.. *Budgeting – “Budgeting is a concrete, precise picture of the total operation of an enterprise in manetary terms.” - According to Donovan “Budgeting is an operational plan, for a definite period usually a year expressed in financial terms and based on the expected income and expenditure.”
- 9. PURPOSE To provide a quantitative expression of the plans of hospital. To accordance financial performance in accordance with the plans. To control costs. To provide a monthly financial plan. To enhance fiscal planning and decision making. To allow feedback of utilization of moneys of money spent.
- 10. OBJECTIVE To direct all employees to the goals of the organization and plan activities to meet the goal. To forecast the income. To anticipate various activities and required for the coming year. To calculate cost required for all activities. To exercise a good control over the activities in the organization.
- 11. FEATURES It should be synthesis of past, present and future. It should be flexible. It should produce of joint venture + co- operation head at different level of management. It should have support of top management. It should be in the form of statistical standards.
- 12. PRINCIPLES 1. •Sound financial management 2 •Based on objective and policies 3 •Planned in advance 4 •Coordinating efforts
- 13. CONT.. 5 •Underdirection and supervision 6 •Quantity and quality evaluation 7 •Flexibility 8 •Interpretation
- 14. CONT.. 9 •Appropriate the nature 10 •Adequate check the balance 11 •Consistent delegation 12 •Financial and non-financial resources
- 15. CLASSIFICATION OF BUDGET Classification of budget Capital expenditure budget Manpower budget Operating budget
- 18. CONT.. TYPES Zero based budget Sales budget Rollover budget Fixed ceiling budget Produc tion budget
- 20. BUDGETING PROCESS Agree on goals Understand current financial status Agree on budget approach Develop draft expense budget Develop draft income budget Review draft budget Approve budget Document budget decisions Implement budget Determine timeline
- 21. STEPS IN BUDGETING 1. Assess goals of the institution 2. Asses purpose and planned to attainment of objectives 3. Asses all old and new programme 4. Identify alternative methods for realizing the objectives 5. Compare alternative to determine the most cost effective 6. Develop a budget request
- 22. IMPORTANCE OF BUDGET • It helps in planning the future activities of organization. • It facilitates the coordinated activities between various departments of the organization. • It control activities an organization especially in the finance departments. • It helps to guide the activities of the organization in a value based decision making.
- 23. FACTORS AFFECTING BUDGETING Factors Cost of resources Staff turnover Consumer demand Quality assurance Other factors (political influence, manmade disaster)
- 24. ESSENTIAL REQUISITION FOR BUDGET Forecasting Accounting Lines of authority Budget committee
- 26. FUNCTIONS OF BUDGET It recognize the importance and develops short and long range fiscal plans. It estimate the internal and external environment of organization. It articulates unit-level fiscal planning. It coordinate and monitor the different aspects of budget control. It underlines the use of appropriate techniques.
- 27. ADVANTAGE OF BUDGETING PROCESS • It helps plan for detailed programme activities. • It help fix accountability. • It states goals for all units. • It acts on controlling devices. • It help in just measurement of programme. • It improves communication. • It helps new staff and lower level managers.
- 28. DISADVANTAGE OF BUDGETING oA budget may become an end in itself instead of the means to achieve an end. oOverbudgeting is big danger. oSkills and knowledge are essential for successful budgetary control. oBudgetary planning is expensive and more time consuming.
- 29. LIMITATIONS OF BUDGETING PROCESS Budget goals may be conceived as too high. Budget are often very rigid. Budget are used to evaluate performance and results , but causes and successful not thoroughly investigated. Budget may be used punitively.
- 30. NURSE MANAGERS ROLE IN BUDGETING Prepare the plan for manpower , and other requirement for the coming year. Utilize lessons learned from the previous year while planning. Prepare the staff requirement based on standards norms like SIU Norms- - prepare the duty schedule - pay roll - supplies - insurance utilization
- 31. CONT.. • Staff welfare activities. • Maintenance service. • Recruitment service. • Medical benefits for the family.
- 32. SUMMARY Budgeting is tactical implementation of organization plan. To achieve the goals in a institute strategic plan. A budget is a financial plan that includes estimated expenses as well as income for a period of time.
- 33. CONCLUSION • A budget should be based on norms and standards. Budget are an important management tool that should be based on the mission, goals and plan of the organization. • I hope you all are understand and well to know about budgeting.
- 34. BIBLIOGRAPHY CLEMENT I. MANAGEMENT OF NURSING SERVICES AND EDUCATION.3RD ED.NEW DELHI:ELSEVIER PUBLISHER.PAGE NO.106-109. DEBR, T.ANBU.ETC. MANAGEMENT OF NURSING SERVICES AND EDUCATION. 3RD. 7TH REPRINT;2020:BANGALOR.EMMESS MEDICAL PUBLISHER.PAGE NO 65-69. MASIH DR.SHABNAM, ESSENTIALS OF NURSING MANAGEMENT OF IN SERVICE EDUCATION.ED3RD: JALANDHAR:LOTUS PUBLISHER.PAGE NO 59-60. https://en.m.wikipedia.org/wikinursing. https://corporatefinanceinstitute.com/resources/fpa /budgeting/#:~:text=budgeting%20isthe%20.