Date of Award
Honors Thesis Number
Team work should be utilized in developing an annual financial budget. The projection of the financial outlook for each department can usually be made by department heads since they are responsible for the daily operation of their unit. Their involvement normally produces less variances from the budget. These forecasts, after input and careful scrutiny by the administration, can provide important information in developing an overall financial budget for the hospital.
A budget is a formal written statement of a hospital's plan for the future. The financial budget is a management control tool normally covering a one year period. The essentials of budgeting are to set specific goals for future operations and to have a periodic comparison of actual results with the financial goals established. Many types of budgets can be used, but three which are important to any hospital are the operating budget, capital budget and the cash budget.