BudgetSome companies turn a deaf ear when it comes to the issue of “budgeting”. Businesses have made significant inroads in the areas of sales and marketing, but they have fallen short in the area of ​​budgeting. Budgeting is more important than ever in businesses today. Competition is intensifying and takeovers are becoming very common. The winners in this type of business environment will be those organizations that minimize unnecessary expenses and maximize the productivity of their resources. In this essay, I have critically discussed the budgeting process in today's dynamic competitive environment. Budgeting is part of a company's annual plan. As defined by Glautier and Underdown (2001), “budgeting is a quantitative statement covering a period generally of one year, which may include expected income, expenses, assets, liabilities and cash flows. Budgeting provides direction to the organization, facilitates coordination of activities, and facilitates control. » Glautier and Underdown (2001) went further to explain this: "Budgeting is probably the most important tool a business can have." It provides an action plan not only for long-term business operations but also for daily operations. Properly used, budgeting can help a business achieve its goals, become more profitable, and navigate difficult financial times. Objective of Budgeting Budgeting serves several management objectives. Probably the main goal of budgeting is to quantify the business plan. Glautier and Underdown (2001) stated that “budgeting allows management to measure anticipated results and expenses to ensure that profit targets are achievable and realistic before implementing the plan. It also helps control income and expenses during the budget year. Management compares its actual results with the budget forecast and must then account for any significant deviations. Significantly large budget variances can indicate the presence of problems in the company's operations. Another important objective of budgeting is that budgeting encourages communication and coordination among department managers within an organization. Departments support each other and use each other’s services; the budget process then ensures that the right levels of support are available by allocating the right resources to the right department. Thus, budgeting provides managers with a way to monitor programs, identify problems, and take corrective action. As Fisher (2005) puts it: “knowing where you are in relation to where you wanted to be. If you’re not there, know which manager to hold accountable or fire.” Again, budgeting acts as an essential managerial decision-making tool. Since management makes decisions throughout the year, budgeting helps quantify the impact of these decisions..