Budgeting is an essential part of planning.
It helps managers control, evaluate and report on operations.
When managers develop budgets, they match their organization goals with the resources necessary to accomplish those goals.
During the budgeting process, they evaluate operational, tactical, value chain and capacity issues; assess how resources for operating, investing and financing activities are currently being used and how they can be efficiently used in the future; and develop contingency budgets as business conditions change.
Managers use budget information to control daily operations, measure and report on performance outcomes, and allocate resources wisely.

Budgeting is the process of identifying, gathering, summarizing and communicating financial and nonfinancial information about an organization’s future activities.

Budgets are plans of action based on forecasted transactions, activities, and events. They are synonymous with managing an organization and are essential to accomplishing the goals articulated in an organization’s strategic plan.

Budgets are used to communicate information, coordinate activities and resource usage, motivate employees and evaluate performance.

Budgets are also used to manage and account for cash.

For-profit organizations often use the term profit planning rather than budgeting.

Strategic planning is the process by which management establishes an organization’s long-term goals. These goals define the strategic direction that an organization will take over a 5-10 year period and are the basis for making annual operating plans and preparing budgets, taking into consideration economic and industry forecasts, employee-management relations, the structure and role of management, etc. Long-term goals cannot be vague; they must set specific tactical targets and timetables and assign responsibility for achieving