The Benefits of Budgets

Various potential benefits of budgets & budgeting such as:

• coordinating business and service operations
  • plan ahead – often reveals need for action which may have been otherwise forgotten
  • learn – effective budgeting systems contain feedback loops
• motivating managers
  • budgetary targets focus attention

Performance judged against targets – must be achievable, realistic, negotiated rather than imposed. If not, they can demotivate.
Goals & objectives within budget should be communicated as presents a subset of organisations overall objectives. Some may be confidential though and are not suitable for dissemination.