A flexible budget is an important financial tool used by businesses to assess performance, compare expenses with actual revenue, and make modifications as needed. In essence, it allows organizations to “flex” their budgets based on the changing circumstances of their operations. This type of budgeting provides more accurate results, since it reflects the factors that drive costs and help improve overall financial performance. It also enables companies to have better control over cost fluctuations and identify any potential risks before they occur. With a flexible budget, organizations can stay ahead of the curve and remain competitive in today’s market.