Question

What are strategic budget planning? How important of the budget preparation for organization? Give example with evidence in order to illustrate your main ideas.

Answer 1

Strategic budget planning involves planning for the future involving a gamut of strategical thinking and ideas. It involves planning for competitive advantage, saving costs and increasing profitability, achieving the mission of the organization. It is important for a company to budget for both financial and non financial items in order to compare it with the actual results, allocate resources in the most efficient way, control deficiencies and plan for future course of action. Without a budget there will be no control on finance or other aspects of the business. For example if there is not budget for overheads and other costs, the organization will not be able to make it if they are under applied or over applied and the underlying reasons there in.l