Analyzing a Budget Essay Example | Topics and Well Written Essays - 500 words

Analyzing a Budget - Essay Example In addition, the expenditures are clearly indicated as well as the source of income or revenues. Fortunately, the expenditures have been included in the budget. The budget clearly includes expenditures in. This is clearly seen for example the expenditures seen are salaries and wages, janitorial supplies, legal advertising among others. Still concerning expenditure, the budget has clear tracking of expenditure. It clearly shows the amount of cash and for what purpose it will be used. This has helped greatly to prevent loss of cash from managing officials. Like in this case it clearly shows the amount of cash slotted for wages and salaries, legal advertisements among many others. Another strength of the budget is that it has included the revenue collection of income. A good budget includes the sources of revenues in it (Arthur 2003). However, this might not be so evident in other types of budgets. In this type of budget, source of revenue has been included which can be seen as state appropriation, county appropriation, patient fees, insurance and Medicaid. The budget has also included the actual revenue receipts. A good budget should have evidence of the actual receipts of the expected revenue or the already collected revenue (Sullivan 2003). This as a greater percentage will help reduce the loss of funds in a particular company or country. However, despite all the strengths of the budget, it has several weaknesses. To begin with, there is no summary of the budget. A good budget should have a summary of the incomes, average receipts, total costs, net drawings from revenues, total income, total outgoings or even if available the money for creditors in any case the company or country or family had Higher than the actual receipts obtained from the previous revenue collection. The budget has no item showing savings. A good budget should have a line item showing savings from