The article, The Beginnings Of Business Budgeting by Epwin Theiss discusses the progress made with regards to a budget ever since it was first used. Theiss claims that the budget was initially used in England as early as 1760 to control governmental expenditure. By 1920, budgeting rapidly and substantially grew in the United States (Theiss 46).Business budgeting has progressed in its development so that the best methods can be selected. It is now being taught in most universities and schools of business administration. Theissbelieves that until 1920, most of the information on budgeting covered only governmental budgets. Information about business budgeting was made public after the close of the World War.This rapid growth was due to increased conditions that made it favorable for budget development. Over the years, significant factors have contributed to the development of business budgeting. For instance, cost accountants have helped in control of costs by recording all variances of standards of company operations. Financial institutions have recommended the depositors to adopt the budgetary procedure in which they get a higher credit rating (Block 290).This article asserts that there is sufficient evidence to indicate that budget control is a logical development in business management.

Based on this article, it is interesting to note that budgeting started in England and spread to the United States and other countries. Primarily, budgeting was only for governmental type, but progress has been made and is applicable in the business field. Business budgeting helps in creating, managing and monitoring a budget for any business venture. Since I work at an investment bank (BNY MELLON), I understand that budgeting is key to business success.  I work in the Treasury Service department where I assist cardholders with issues concerning their accounts.  I help them to budget their money and allocate it where it is needed so that their businesses can remain profitable and successful. The article provides me with great insights on business budgeting and its advantages such as reducing costs, enable cash flow and increase return on investments.

References

Theiss, Edwin L. “The beginnings of business budgeting.” The Accounting Review 12.1 (1937): 43-55.

Block, Stanley. “Capital budgeting techniques used by small business firms in the 1990s.” The Engineering Economist 42.4 (1997): 289-302.

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