Budgeting is a financial plan for allocation of available funds. Why 'Budgeting' is neccessary?
- Budgeting helps an individual, department and organisation achieve planned objectives.
- Budgets helps to illustrate the financial responsibilities of the organization to its shareholders, lenders, suppliers, employers, customers and the owners.
- Budgets are only as good as the individuals who prepare them. The validity and usefulness of a budget depend on the people who put it together.