A budget allows businesses to plan out expenses on a monthly, quarterly or yearly basis, to track the progress of goals and anticipate any operational changes.
An effective budget should give a business the tools to track how the company is doing financially so it can plan for both short- and long-term expenses – including everything from new hires to the cost of expanding operations.
It can also give a company the ability to share its financial performance with a governing body, such as a board of directors, and provide important status updates to current and potential investors.
Creating and monitoring budgets is a useful and transferable skill for young professionals – particularly those with ambitions to progress to higher management, who are typically involved in organising departmental budgets.
