Can I budget when I have no cost accounting?
YES. There is no specific formal requirement for a budget, otherwise it would
not be possible to create a budget at all for a start-up company. In budgeting it
is incorrect to wait until a general framework is created. There are two arguments for this:
- A budget is a formation of the future. It helps you to make better decisions and implement these more efficiently.Cost accounting on the other hand is an implementation and monitoring tool. Without planning there could come a day when you no longer have anything to monitor.
- A budget helps you to organize your other billing systems, including
cost accounting, dynamically and in a decision-oriented way. It can therefore serve as a model for your organization. If you bridle the
horse the other way around and first of all formulate billing, you need not be surprised if the majority of the paper produced is only good for garbage.
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