“For a small business owner, the process of budgeting is limited to figuring out where to get the funds to meet the next week’s payroll. There are so many financial fires to put out in a given week that it’s hard to find time to do any meaningful short or long range financial planning. But failing to plan financially might mean that you are unknowingly planning to fail“.
For a medium and large scale business, financial budget acts as a tool to promote organizational accountability and effectiveness. Through this tool, your current performance capabilities in the background of general economic and industrial trends can be reviewed and proactive action to explore and weight the options on hand can be initiated.