Budget is a comprehensive financial plan of allocation of financial resources. Advantages of Budget for business:
1) It helps in coordination between different departments
2) It acts as training to the managers
3) It compels managers to think ahead
4) It helps in planning and controlling
5) It helps in achieving the objectives
Budget also helps for managing the finances of household by keeping record of all the cash flows. It helps in estimating the cash required, cash inflows and outflows. It make person more financially conscious and helps in taking decisions.
Budget is a comprehensive financial plan of allocation of financial resourc