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Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.Budgeting is simply balancing your expenses with your income.
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A budget is quantitative expression of plan of action and an aid to coordination and implementation. Budgets must be formulated for the organisation as a whole or for any subunit. The master budget summarizes the objectives of all subunits of an organsiation- sales, production, research, marketing, customer service and finance. It quantifies management's expectations regarding future income, cash flows and financial position. These expectations arise from a series of decisions resulting from a careful look at the organisation's future.
Budgets compel managers to look ahead and be ready for changing conditions. This forced planning is by far the greatest contribution of budgeting to management.
Budgeting is also an integral part of strategy and tactics. Managers must grapple with uncertainty, either with a budget or without one. The advocates of budgeting maintain that the benefits from budgeting nearly always exceed the costs. Some budget program, at least, will help almost every organisation.
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هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟
