Why budget is important for business management?
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Budgeting is a process of creating a plan to spend your money. The spending plan is called budget. Entrepreneurs normally says that budget is an important tool to run or manage the business and this are the reasons :
A budget that is shared gets everyone on the same page, for in stance if the business sales team thinks their goal is to grow sales by 30% ,but the budget shows 40% growth in revenue, then they can work together towards achieving the sane goal.
A budget helps you to see the changes you need to make ahead of the time, Like when the budget is made at the begging of the year, you can see the upcoming problems and other issues to address ahead of the time.
A budget gives you a measuring stick, in that it makes you run the business, you can determine whether or not you are on track.
Budgeting is important as this allows the business to know or determine in advance if whether they have enough money to run their business.
It also helps the management of the business to manage the money properly by balancing the expenses.
A budget that is shared gets everyone on the same page, for in stance if the business sales team thinks their goal is to grow sales by 30% ,but the budget shows 40% growth in revenue, then they can work together towards achieving the sane goal.
A budget helps you to see the changes you need to make ahead of the time, Like when the budget is made at the begging of the year, you can see the upcoming problems and other issues to address ahead of the time.
A budget gives you a measuring stick, in that it makes you run the business, you can determine whether or not you are on track.
Budgeting is important as this allows the business to know or determine in advance if whether they have enough money to run their business.
It also helps the management of the business to manage the money properly by balancing the expenses.
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