Dear readers, budgets are nothing more than an anticipated cost with the purpose of carrying out an activity or service. That is to say, when a budget is made, it is to have a better idea of the expenses that can be originated at the moment of carrying out the project that has been stipulated. In this sense, Burbano and Wlesch (2005), mention that budgets are the quantitative expression to direct its operations through the correct application of its strategies and a systematic method which are used for the achievement of the objectives that it has in a determined time.
It is important to keep in mind that budgets are a great tool for companies because, through it, it is possible to determine if what the company intends to do is feasible or not for it. On the other hand, budgets influence the management of business, and help us in making decisions, for this, it is important to have specialist people to help manage and somehow help the growth of a company and thus meet the objectives either short, medium or long term.
One of the benefits when applying budgets in business is that it can determine both what will be spent and what can be earned at the time of making any investment, it also plans each of the activities that the company can perform. Likewise, the company can determine in advance any problem regarding the costs that may be generated.
Finally, it can be said that budgets are essential for the management of businesses regardless of their size, at the time of forming a company should evaluate all the tools that are needed as it is a way to establish controls that can be of great help to them, it is for this reason that it is necessary to have responsible people who have experience because a bad control can cause big problems and at times even losses.
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Burbano, J. (2005). Budget. University of Valle. Colombia
