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Budget as Personal Financial Controller
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[QUOTE="Jasz, post: 230636, member: 61772"] The standard of a balanced budget is the main reason for most companies having this. It is an important task that every company needs to balance out. This is a technique used to control the income and expenditure of a business, so they know they can make ends meet with their financial responsibilities. First, there are many reasons why the government may fail in their attempt at keeping a balanced budget. These reasons include unexpected expenses and difficulties in raising revenue, which can be caused by unexpected economic events. For example, if one company were to suddenly go out of business, then it would affect all other companies in the same industry by causing them to lose a big client and therefore losing money as well. This would mean that the government would have less tax income from these companies and therefore there would be more money being spent than gained. Secondly, there are factors that need to be considered when keeping a balanced budget. The first factor is knowing what your income is going to be like over the next few years (e.g., if you sell your product overseas, then you need to know how much you will gain from it). Another factor is making sure you have enough money left over after paying all your bills (i.e., rent) or else you will go into debt and end. [/QUOTE]
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