Question

What do you mean by budget why is it important for any organization

Answer 1

Answer:

In the case of organizations budget can be defined as a financial plan concerning the company/firm.

Explanation:

In this plan, the revenues and costs meaning the inflows and outflows of a company are monitored to help see the company position as well as cut costs.

Generally budgets are made in advance, then it is seen whether the company has followed that budget or not, over-exceeded. This helps to understand where the company stands.

It is important for any organization to have a budget and follow it as well, because through this way company wont spend more than what they are earning. Through keeping budgets, companies can help determine their variances via analysis of previous budget with current performance as well.  

Budgets help to keep a safety plan and then furthermore help to come up with contingency plans too.