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How budgets contribute to planning, control and motivation in an organisation.
Businesses have to prepare for the future, companies have to set out their goals that they want to achieve and aim towards them. The purpose of a budget is to estimate the income and expenditure of a business or a part of a business over a time period. It is essential for a business to have a good budget as it helps the company in a variety of situations, it is a detailed plan and blueprint of what the company wishes to achieve using figures and detailed action plans.
Budgeting however doesn't exist on its own; it plays an integral part in all aspects of a company from planning to motivat…
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