Why "Budgeting" is important for an Organization ?

Budgeting is used as:1- A goal the business is setting it to achieve.2- A control tool to compare with what the business had set of goals and in case of variance, a corrective measures should be taken to align with road to the goals achievement. I hope this help explan the subject matter.

Budgeting is important in an organisation because it helps in setting standards of performance, it plays a critical role in strategic planning and it provides a tool to measure organisation results. Budgeting is usually the responsibility of the finance department.