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Why is it important for the nurse leader to provide a reasonable and fair operation budget? •Although budget figures are...

Why is it important for the nurse leader to provide a reasonable and fair operation budget? •Although budget figures are estimates of future projections, why and how should nurse leaders be prepared to explain short-term variations?

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Nursing manager set goals and designs budget for the nursing unit. After it has been developed and updated ,it is submitted to administration and ultimately to the board of directors for approval. After the budget is approved and fiscal year begins, the organization must deliver the planned services and programs. Operating budget helps in planning for daily revenues and expenses based on revenues and expenses. Budgrting is concerned with the acquisition of funds for the nursing service and the technique of their expenditure or a series of payments from the funds provided. Operating budgets cover the day to day costs of a unit, including such things as as wasges for regular and per diem staff, supplies supplies equipment, repair and maintenance, travel and education and dues and subscription.

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