Budgeting in Business: Understanding Why and How to Prepare an Annual Budget

The video tutorial covers the role of executives in budgeting, explaining why businesses budget and the challenges they face. It introduces forecasting as a solution to budgeting issues and details two main budgeting approaches: traditional and zero-based. The budgeting cycle is explained, highlighting the roles of different departments. The tutorial concludes with a transition to finance topics.

How does the budgeting cycle involve different departments within an organization?

What is the significance of including a balance sheet with the budgeted income statement?

What should be done once the budget is set, according to the lesson?