Describe the basic principles underlying the importance of creating/maintaining a good annual budgeting process.

Scenario The neighborhood that you live in suffers from an acute lack of affordable housing due to rising rents and the limited supply of housing units. To address this issue, you decide a start a human services organization called “Housing for All”, with a primary mission to promote affordable housing for the people in your neighborhood.
Since your organization is still in its early stages, you will be in charge of overseeing the financial and accounting transactions and recording. As you opened the organization’s bank account, the bank teller tells you that you will probably use the cash-basis accounting system initially.

1a. Describe the basic principles underlying the importance of creating/maintaining a good annual budgeting process. In your answer make sure to discuss how the overall objectives of the organization are reflected in the operating budget.
1b. How important is it to have a diverse mix of income sources? Explain your response.

USE IN-TEXT CITATIONS TO SUPPORT YOUR RESPONSES. I’VE INCLUDED A LIST OF THE REQUIRED READINGS/REFERENCES FOR THIS ASSIGNMENT. All OTHER EXTERNAL RESOURCES MUST BE SCHOLARLY.

REFERENCES

Albritton, B. R., Hartsfield, F., Holmes, A. F., & Kappmeyer, C. (2018). Developing Bridges Center Grant Proposal: A Budgeting Case for a Nonprofit Organization. Journal of Governmental & Non Profit Accounting, 7(1), 78–86. Retrieved from EBSCO multi-search available in the TUW Library online.

Antonelli A. (2017). Budgeting Best Practices. Nonprofit Finance Fund. Retrieved from: https://nff.org/blog/budgeting-best-practices
HHS FY 2017 Budget in Brief (2017). U.S. Department of Health & Human Services. Retrieved from: https://www.hhs.gov/about/budget/fy2017/budget-in-brief/index.html
Nonprofit Finance Fund (2018). Nonprofit Budgeting: use Excel’s group feature to simplify your budget . Retrieved from: https://www.youtube.com/watch?v=PyvLZ-HNIU4 (5:24)
Polanco H, Summers J (2015). A Five-Step Guide to Budget Development. Wallace Foundation. Retrieved from:https://www.wallacefoundation.org/knowledge-center/Resources-for-Financial-Management/Documents/A-Five-Step-Guide-to-Budget-Development.pdf
Olson C. (2016). Building an Effective Budgeting Process. Retrieved from: https://clarknuber.com/articles/building-an-effective-budgeting-process/

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