Strategic Budgeting

Strategic Budgeting
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Strategic Budgeting
Strategic budgeting involves developing a long-term budget that spans more than one year. The purpose of this budgeting is to create a roadmap that supports the strategic plans of the organization. This may be in the form of research and development, restructuring the entity, and introducing new products or services (Bragg, 2020. A balanced scorecard plays a significant role in health care budgeting because it aligns the mission, vision, objectives to performance metrics. The following are an example of strategic budgeting.
Flex Budgeting
This method of strategic budgeting addresses the forecasting variances and errors resulting from budget cycles. It considers actual volumes generated by the entity and flexes against variable expenses and revenues hence developing strategic budgets using actual volumes. This method is based on the actual results of the health care organization instead of figures based on assumptions and estimates, therefore providing accurate reports that are then used to make appropriate decisions. This will safeguard the compa...