Budgeting: The Means is not the end.

 A budget is simply a plan; your household budget is also a plan. They have two main features.

 

 

 

4 Key reasons for having a budget:

• Goals: A map for the future.

 
• Effective Evaluation: goals, broken into objectives/time blocks, allow one to assess performance.

 

• Compel Managers to think and plan ahead.

 

• Communication & Unity in the organization; goals have to be conveyed, people convinced and performance quantified.