Why "Budgeting" is important for an Organization ?

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Why is an annual budget important?
Posted by:
Abdullah Mahhaden, CFA, CPA
15-June-2013

Payroll Accounting Accounts Receivable Budgeting Financials

Question added by Khaja Moinuddin , Group Assistant Financial Controller , Confidential
Date Posted: 2014/02/10

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by Ashraf CMA CIA , Finance Manager , contracting trading Co

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.

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by Khaja Moinuddin , Group Assistant Financial Controller , Confidential

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.

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