Importance of Budgeting

 A budget helps us to following ways,

·         It brings about efficiency and improvement in the working of the organization

·         It is a way of motivating managers to achieve the goals set for the units.

·         It serves as a benchmark for controlling ongoing operations

·         It helps in developing a team spirit where participation in budgeting is encouraged.

·         It helps in reducing wastage and losses revealing them in time for corrective actions.

·         It serves as a basis for evaluating the performance of managers.

·         It serves as a means of educating the managers.