One of the most important tools for a good financial management is the budgeting process. The word budget is used in common mean allocation of resources. The idea is make sure you monitor your expenses and stay within the available resources.
In large corporation budgeting is a collective process in which operating units prepare their plans in in conformity with corporate goals.
Budgeting is an important and integral part of running a business it helps one to manage the business by numbers and not the seat of pants. One of the reasons business fails due to lack of discipline and term of budgetary process.