BUDGET 1 8.2 Discussion: Budget3SU2021 Ldrshp, Admin, & Supervision (SWK-665-01EE) – 3SU2021 SWK-662-01EE Author's Email: [email protected] 28.2 Discussion: BudgetUsing APA format, navigate to the threaded discussion below and write a one paragraph response to each of the following prompts:According to Weinbach and Taylor, why are budgets important?According to Weinbach and Taylor, a budget is a projection of future income and expenditures. Making budgets is significant for the management to anticipate what financial resources are required to support the organization's activities. Budgeting helps the management to allocate scarce resources efficiently. What's more, budgets monitor and control all organization's financial activities in a year (Weinback & Taylor, 2015). Therefore, having an accurate and realistic budget is essential for managing your business. A budget suggests that an organization must stay within its operational budget to avoid facing unexpected obstacles. A reasonable budget identifies available capital, project costs, and expected revenues (Weinback & Taylor, 2015). Lastly, it is also a vital tool that prevents unethical employee behavior such as financial misappropriation. Please review the types of budgets described by Weinbach and Taylor, considering the organization in which you are currently affiliated with or were with your field practicum, please identify, define and explain the type(s) of budget that is used.Weinbach and Taylor suggest various types of budgets that organizations can use to manage their resources. Specifically, they emphasize that the line-item budget that is a commonly used type of budgeting. The organization which is St. Vincent de Paul, also uses this type of budgeting. A line-item budget entails many lines that reflect a category of expenditure such as organization utilities, staff salaries, rent, utilities, and professional travel, among others (Weinback & Taylor, 2015). Therefore, this type of budget includes items are grouped by categories mentioned above. As Weinback & Taylor (2015) attests, “the line-item budget allows a financial manager to compare financial data for the past budgeting periods and estimatedBUDGET 3expenditures for the current or the future period.” One significant aspect of line-item budgeting is that it offers flexibility in managing organization resources, depending on the expenditure level that is included in the budget. Therefore, its main advantage is that it provides simplicity because the financial manager can easily budget for each department of the organization based on historical figures (Weinback & Taylor, 2015). Since St. Vincent de Paul is a social service organization, the line items are broken down by programs we offer to the community (program budgeting). Every program has its column in the budget and the money that is apportioned to it. For instance, if we budget for salaries in each program, there is a specific amount of money allocated to it.When reviewing the video, identify 3 terms that were new or least familiar to you. How does this information assist you in learning more about the financial management of an organization?After reviewing the video, the three terms that were familiar to me were assets, liabilities,and expenses. From my basic understanding, an asset refers to a resource that entails an economic value that an organization controls or manages with the anticipation that it will benefit in the future. Therefore, I have known that assets are reported in the organization's balance sheet as items that increase the value of an organization. As such, it is significant for organizations to manage their assets well to achieve their objectives. The second term that I am familiar with in financial information is liabilities. These refer to the probable future sacrifices of economic benefits that arise from the current obligations of an organization to transfer assets to another organization in the future as a result of past financial transactions. In other words, they refer to the responsibilities that an organization has to pay to other entities. The final term is expenses. This refers to a business's outflows or the incurring of liabilities after a certain period from the delivery of goods or services. An excellent example of expenses includes salaries. I have learned that for an organization to be successful, it is significant to reduce unnecessary expenses.BUDGET 4As social workers often one wants to provide a service which means meeting the needs of clients and sometimes may not consider the financial aspect of an organization. If one is an administrator, can you just focus on providing a service to clients? Do you need to focus on the financial aspect? How are these two things related?As an administrator, it is essential to focus on both client service and the financial aspect of an organization. Focusing on clients puts an administrator in an excellent position to provide better service to them. When this focus is put, clients will realize that an extra effort is put in to understand their situation and that they are being helped to raise their standards. On the other hand, focusing on the financial aspect is critical because it offers an economic analysis of all facts and figures through various financial instruments, such as annual accounts, budgets, etc. This helps analyze the plan's profitability in its current state to make informed decisions to reduce the risks involved.BUDGET 5ReferencesWeinback, R. and Taylor, L. (2015). The Social Worker As A Manager. (7th ed. pp. 113-114; 274-282).