There is a saying – ‘If you fail to plan, you plan to fail’. Budgeting is more about planning – planning of our spending to achieve certain goal in a particular given time period. Budgeting is a process of creating a plan of our spending on a proper manner. This is, in fact, a tool of our planning. Our success depends on a proper planning. Therefore, we need to prepare our budget very carefully taking into account complete information, future priorities/ goals, resources etc.
Budget gives us guidelines on our spending and business activities with a focus on our priorities. This serves as a tool to help us prioritize our spending and manage our fund. As the action plan is made on the basis of budget, it gives us a picture to check if the business activities are as planned at any point in time. Thus, budget also serves as a control tool helping us to prioritize our activities.
A proper budget and a proper monitoring system (for its execution) in place helps us achieve our goal. Therefore, it is very crucial for every business to have a consciously prepared budget in work areas.
Keeping this in view and considering the request from a few BFIs, NBI is now rolling out a one day program on Budgeting.