I’m studying and need help with a Business question to help me learn.
Instructions: ****Read the response below and write a 100 word response.
When the author says, “the narrative comes before the numbers,” he’s clearly saying that reason of what the budget is being used for should be determined first before putting the budget in place. This is clearly understandable as no one would want to put a budget in place for something they have no idea of what it is for. When a person or even a company prepares a budget, it takes time. Therefore the budget purpose should already be understood and laid out so that when the budget is being prepared, it would not be too low or too high but just right. This is kind of similar to someone writing a narrative novel. The writing company would want to see and read over the narrative before even considering a budget for it. So basically, the author let’s see what the why something is being created and everything that goes with it before numbers are placed on it.
It is important that the budget narrative be drafted first so that the one who is preparing the budget have an insight of what the budget is being used for. No one wants to go into anything blind-sighted. There has never been a time where money is given for something that hasn’t been seen or read. By allowing the narrative to be drafted, this allows the budget to be prepared correctly. Many public finance novices are already apprehensive about preparing budget estimates as it is. So having that narrative drafted gives them a sense of peace so that they know this is something that will help double their money. The most important thing when trying to get a budget for anything is to make sure that the narrative is drafted first.