Budgeting Process Literature & Language Essay Paper (Essay Sample)

Budgeting Process
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Budgeting Process
Introduction
Budgets approximate the total income and costs that help businesses to know their future monetary needs, and plan on such revenues, expenditures, and cash flows, which they anticipate from the business. However, if a company lacks or does not make budgets that support its strategic plans, it ought to develop other financial techniques that assist it in planning. Companies use budgets to aid the executives in ensuring that the firms get and utilize their resources efficiently (Burtonshaw-Gunn, 2017). Therefore, budgets help business executives to realize the goals of the firms.
The Role of Budgeting Process
The budgeting process aids organizations to approximate total income and costs, and know their future monetary needs. In addition, budgets help firms to plan the use of their cash flow, expenses, and revenues, which they expect. Ji (2017) asserts that companies ought to come up with budgets that back up their plans. Planning helps managers to set priorities, focus different resources as they strengthen business processes. Additionally,