Annual Budgeting

Running a business in today's changing environment requires business owners to carefully plan and review their performance on regular basis (monthly, quarterly and annually). One of the tools widely used is annual budgeting.

Why do we have to project our annual budgeting? The annual budgeting offers business owners some benefits such as:

• Ensuring the financial performance on the right track
• Managing corporate spending in the future time period
• Controlling new capital expenditures (new purchases of big fixed asset items)
• Conducting variance analysis on performance (budget vs. actual, current year vs. last year...)
• Planning capital resources for future business growth and expansion