Importance of Budget and its Elements

Management
Accounting
Part 2 (b)

 The present presentation is based on the evaluation of
the importance of budget and its elements. The
presentation also describes about the steps that are
required to be taken while preparing budget.
Introduction

 This process is started by the determination of financial
objective of company, and on the basis of this budget
will build (Blanchard, 2015).
 It is refers as a guideline, which can be used by
company for observation of its profit stream and can
ascertain probable risk associated with its earning
generating capacity
Budget Definition

 For keeping the record of income and expenditure
budgeting process is applied by the organizations.
 For any business entity, budget process plays a very
important role (McDONALD, 2016). It is an important
technique with respect to put control in manner of
spending by business.
Importance of budget