Preparing and Managing an Operating Budget NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Preparing and Managing an Operating Budget NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

Managing budget is crucial for leading nurses to ensure benefits for customers. Budget management and the preparation of operational budget involve planning resources for equipment and other health-related tools. Considering needs of an organization is also important for manager nurses to plan the right operating budget. This task is crucial for my team to craft operating budget for our department by applying knowledge and techniques. This report will assist leaders to facilitate each other and analyze the efficiency of our 40-bed hospital. 

The Operating Budget Preparation

NURS FPX 6216 Assessment 2 Preparing and Managing an Operating Budget

The proposed operating budget is aimed at providing the right information to managers that is relevant to expenses and costs of operations (Bermúdez-Tamayo, 2018). In our 40-bed organization, budget controlling is the responsibility of manager nurses. They are responsible for maintaining the unit that is occupied by most elderly patients above 60. The budget planning is done in phases, for example, the focus of this budget will be on income statement that records most of the expenses during the year. The balance sheet will also be a focus of this budget for recording cash and other receivables. The organization has purchased equipment such as CT scanners, diabetic monitoring devices, and blood pressure monitoring tools recently to meet patients’ needs; nurses should understand these needs to allocate resources through budget.

Preparing an operating budget also offers a clear picture of how the organization can use funds and which funds are available to make the necessary and vital expenses. Some expenses are unavoidable, the company must use the funds available to meet its objectives (Bryson & George, 2020). This implies that the organization must have adequate cash on hand to deal with any future crisis situation. Therefore, if managers want to build a thriving and long-term successful operating budget, they can benefit from this plan.