8 important Advantages of Budget

8 important Advantages of Budget are as follows:

1. Budget aids planning this is not mere forecast but a forecast with numerical expressions.

2. Budget helps in achieving coordination as activities in organisation are inter related, budget coordinates the expected performance of each department and gives a consolidated picture.

3. Control function is facilitated by budget it helps to measure performance and focuses attention on deviations for corrective actions.

4. Budget assists in fixing responsibility the executive concerned knows what he is accountable for in the light of the results expected to be achieved.

5. The control information’s supplied for budget helps decision making of the managers concerned.

6. Budget forces the organisation to quantity, i.e. state in figures what is required to be achieved.

7. Budget promotes division of work and specialisation. Specialisation brings efficiency not only in the working of employees but in the organisation as a whole.

8. Budgetary control brings about an overall improvement in the working efficiency of an organisation.