Concept of Budget

 Budget plays an important role for the development of person, Personnel, organization, company and country because it helps us to optimum utilisation of money.

In the simple sense we can say that it is a document that represents income and expenditure.

In the advance form we can say that it is an estimation of the revenue and expenses for a specific period of time.

According to my words Budget is a financial and quantitative documents prepared and approves coming income and expenditure for optimum utilisation of resource to achieve goal of the organization.

Characteristics-

1.It is a financial documents.

2.It belongs income and expenditure of organization.

3.It belongs to one year.

4.It expresses monetary form.

5,It is realistic. 

6.It is flexible.

Objectives-

1.To forecast income and expenditure of organization.

2.To reallocate finance according to need of departments.

3.To increase the growth of organization.

4.To coordinates activities according to Budget.

5.To compare result between actual performance and predefined performance.

6.To ensure the achievement of the goal of the organization.

7.To perform managerial function like planning and controlling by effective way.