In a purpose-driven Finance team, we must understand why we use budgets. My thinking is that understanding why helps us to do things better.
Why do we often spend almost six months of the year preparing a budget for the following financial year? Is this time well spent?
What are budgets for?
How does defining the purpose of budgets help us? Would it change the way that we do them? Should we bin the budget altogether?
Take a look at the article and let me know what you think!
And if you haven’t seen the first part of the series, click this link!