Week 1. The importance of budgeting within an organization

The importance of budgeting within an organization
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The importance of budgeting within an organization
One of the benefits of budgeting is that it helps an organization to focus on money goals. Accountants in a certified company often prepare the best plan for the organization, and identify the unnecessary expenses of the company based on services and products (Banks, 2018). In this case, budgeting helps the company to operate with the available resources to meets its financial needs.
Another importance of budgeting is that it helps in organizing expenses and savings. A budget will make the company aware of the expenditure and the amounts available for saving. This creates an opportunity for business adjustments (PrinciplesofAccounting.com). It also acts as the best reference for the formulation of financial statements, which help the organization realize its financial status.
Budgeting also helps an organization to identify potential problems. After formulating a budget plan, the management will have a broad view of the compa...