A budget shouldn't just be a suggested spending plan—it should be a viable road map for the company's fiscal future. It may seem like a simple and obvious step, but it's surprising how many businesses fail to write and maintain a budget each year. A budget can give a company a sense of what can be spent and in what ways. This will help to gauge in which areas risks can be taken, and which areas can benefit from investment.
A budget isn't just a financial plan; it's also a functional visualization of a company's internal behavior. A budget can illuminate disproportionate costs in office supplies, overtime, or any other element of the day-to-day operation that is too easily folded into the assumptions about expenses during the year.
