Why Budgets Are Important, And The Process Is A Serous One?
Almost all well-run businesses and organizations prepare budgets at least annually. Unfortunately, very often, the budget process becomes more of a formality, required process, or activity, than a useful document. While budgets should be part of a careful and detailed process and analysis of a businesses or organizations needs, and how to get there, it is much more common that the budget is merely a “bunch of numbers” that “have to be” prepared, than anything useful. “Let’s just prepare it and get it passed” is an often stated opinion. “It doesn’t really matter, because we’ll just change it if we need to anyway,” is repeated ad nauseum, making the entire process little more than a waste of time and energy. Dictionary.com defines “budget” as an “estimate of expected income and expenses, and when used as a “verb (used with object),” as “to allot (money, time, etc.). However, the definition does not detail the important functions that a properly prepared budget can and will provide. Budge
