Question

Considering all areas in which accounting and budgeting (especially regarding reporting, analysis, and capital expenditures) are involved in and key to sound business decisions, discuss the effect that electronic access (and related connections) has had on key aspects of the accounting and budgeting decision-making processes in business.  

• What steps would you take to rationalize these functions in light of such electronic documentation?
• How and to what purpose would those steps function?

Answer 1

Answer(1):

	Accounting	Budgeting
Recording	Accounting rules and standards help in recording the monetary transactions in the journals and general ledger.	Budgeting is a forecast or estimation
Reporting	Accounting is very important in reporting process, financial statement such as Balance sheet, Income statement and cash flow statement are prepared with the help of general ledger and T-Accounts.	In budgeting, estimated amounts of income and expenditures are recorded and different types of budgets are prepared.
Analysis	Accounting methods and techniques are useful in analyzing the different financing options for the company.	Managers analyze the future cost and profits with the help of budget
Capital expenditure	Capital budgeting techniques are used to evaluate and compare the different projects so that best alternative can be chosen.	Budgeting is very important in taking capital budgeting decision, it shows how much will be spent and in how many years, the initial investment will recover.
Control Procedures	Journal entries are done with the help of accounting golden goods rules, financial statements are prepared to show the true and fair picture of company and also useful for controlling the wastage of cash.	Budgeting is very important in controlling the cost, if future cost is increasing, it can be controlled today so that future profit can be increased.

Accounting and budgeting help the managers take business decision, they make the spending plan so that business may always have money for day to day operations. Better budgeting will keep the business out of heavy debt and obligations.