Tuesday, 12 January 2016

A budget is crucial to managing the business.

"If you fail to plan, plan to fail."  Benjamin Franklin

A company that fails to prepare budgets and then to use those budgets to control the business runs a high risk of failing.

A company that is well run operationally, may not be so well run financially.

As a company grows, the importance of good financial management, alongside operational management, cannot be over-estimated.

Companies use budgets and other similar tools to financially manage their business.

A budget is a financial picture of the future (perhaps on a short, medium or long-term basis).

Others may see a budget as more of a forecast or plan to which you add (or take away) money.

It could just be just a future P&L account; a benchmark or baseline.

A budget is crucial to managing the business.

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