What is Budgeting and Why is it Important? - letsdiskuss
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ACCOUNTANT | Posted on | Share-Market-Finance

What is Budgeting and Why is it Important?


@Blogger | Posted on

Budgeting means all the activities which are performed in order to prepare a Budget. It can be also said that it is a quantitative plan which can be used as a measure to decide which activity will be chosen for future time domain. Indeed it a process to plan our upcoming incomes and how to use that to pay for all the expenses.


Budgeting involved a different steps to be taken with care in order to be systematic with your budget. You can also use free budgeting tools available on internet. These are are follows:

• Always make a sheet containing all your estimated sales for future.
• Make an account to jought down all the incomes which you'll be receiving in the coming period.
• You must have in hand the daily petty transactions which you'll be needing for everyday work. Cash should not fall short.
• Prepare a summarised Income Statement and Balance Sheet.

Budget plays a very important role, it doesn't matter whether you are an individual, a small firm, a big company or a non-for-profit organisation. We need it everywhere. Comm'on even school students plans about her/his expenses, without even knowing the actual relevance of this word 'Budget'. Budget not only helps you in fulfilling all your monetary requirements but also helps to make it a complete success without any hassle. If you are able to make a budget from now only, no matter at what stage of life you are at, and are able to follow it judiciously, trust me you surely going to save a nice amount. And, now when you'll be actually having a handsome amount in your savings account, you can plan to use it as an investment and make it grow in multiples.

There are different ways where you can invest your money in so that it can grow and can give you excellent returns with time. So, be smart. Use only what you need and not what you aspire for! Hold on for a while and your aspiration will hug you itself.