Budgeting is a fundamental business process that involves estimating the monetary resources required to carry out specific activities in a defined period of time. It is used to anticipate and plan for upcoming expenses, allocate resources accordingly and assess whether the company’s objectives are being achieved within the established constraints. Budgeting helps businesses manage their finances efficiently by monitoring how much they earn, spend and save, while also ensuring they comply with applicable legal regulations. By regularly reviewing budgeting processes and setting financial goals, businesses can ensure they operate within their means and plan for future growth.