AS A MANAGER , you may be asked to prepare a budget for your department or business unit. But what is a budget, exactly? How does budgeting work, and why is preparing a well-thought-out budget important? Let’s take a closer look at these questions below.
A budget is the financial blueprint or action plan for a department or organization. It translates strategic plans into measurable expenditures and anticipated returns over a certain period of time.
Budgeting activities include: