What are the benefits of Budgeting?

• What are the benefits of Budgeting?:

  • Production or expenditure budgets allow managers to ensure that a business does not overspend.
  • Budgets allow senior managers to direct extra funds into important areas of the business.
• What are the benefits of Budgeting?:

  • Budgets can be used to increase staff motivation and performance
  • Budgets enable managers to make focused and informed decisions to improve financial performance