what is Budgeting ?

Budgeting⇒ is the phase of accounting that deals with the preparation of a plan or forecast of future operations. Its main function is to provide management with a projection of the activities necessary to reach established goals. Budgets are generally prepared for the business entity as a whole as well as for subunits. They serve as control devices when used in conjunction with performance reports, which measure actual results for the period. Budgets are also used in assessing the effciency of operations.