What are the goals and reasons for planning budgets prepared?

The goals and reasons are as follows:

• Make Projections
• Set spending
• Determine Break Even
• Set Prices
• Track Progress and Make Adjustments
• Secure Capital

The Goals for planning budget and prepared are

1- it is a plan to use funds efficiently

2- it is a plan to achieve company objectives

3- it help in decision making.

4- it used as a reference for evaluation performance

5- it provides accurate information

budgeting  goals are set  for  income  ,cash flows and financial  position  

reasons  of  budgeting  used for  1-planing  -communication and  coordination3-monitoring  4-evaluation      

Budget is a part of overall planning process.Budgets set out the cost and revenues that are expected to be incurred or earned in future period. Most organizations prepare budgets for business as a whole. The following budgets may be prepared by organizations:

1.Master Budget

2. Departmental Budget (sales, production, material, labour, overhead)

The main aim of budgeting are:

A. Planning for Future

B. Controlling Costs

C. Coordination (working together to achieve common goal.

D. Communication-Budget  communicates the targets of organisation.

Follow-up, monitoring and evaluation

Budget planning is the process by which a company or individuals evaluate their earnings and expenses and project their monetary intakes and outakes for the future. The goal is to lay out all necessary components and brainstorm future goals.