
Budgets — What to Do and How to Use Them
Budgets represent plans or expectations for the future! They are a means to plan, forecast, coordinate and control the activities needed to achieve the business’ objectives. The budget document contains the amount of money that has been allocated to achieve those goals and the timing of its spending. Budgets cover the planned use of men, materials, external resources and management effort that is expected to be sufficient to hit the targets. Once the budget is finalised it becomes a tool to feedback how the actual progress is going compared to what was expected. [Read more…]