Budget Accounting and Reporting - Assignment Example

Budget accounting and reporting provide the organization with tools to compare the estimates and actual results thus offering budgetary control techniques.

            Budget accounting and reporting do fulfill their initial purpose. The two processes are meant to evaluate approved budgets against actual results to guide future and current decision-making. The processes assist to enhance financial control and identifying where change is quickly needed and required (World Bank, 2012). Through budgetary reporting and accounting, variances between the actual results and estimates get noted and the necessary action is taken to correct the underlying causes to manage the variations.

            The current budget system works efficiently. The budget system provides the means to base decisions on how much money to spend and on what to spend. It also provides ways on how the money to be spent will get raised. The budget system provides estimates of the government’s proposed spending and income generation process. The deficits and variances can also get determined to help the government plan for the nation’s fiscal future. the budget system helps to set aside estimates for the different sectors the government involves itself with.