A budget is a comprehensive financial plan for achieving the financial and operational goals of a company. When used correctly, a budget is the map of the company’s strategic plan. In creating the budget, the company is developing its objectives for the acquisition and use of its resources. Once in place, it becomes a valuable benchmark to determine how well the steps taken by management are ensuring objectives are attained.
A budget is a plan to:
The benefits of budgeting:
A good budget shall include the following 7 components of;
If you’re running your business without a proper budget you may be actually just running around in circles and not meeting your long-term goals. By taking the time now to set a budget, you will free up time in the future and give yourself the best chance of achieving the rewards you want for your hard work.