Budgeting is a critical component of any business plan, helping to ensure that you are allocating resources effectively for maximum efficiency and success. It is the process of creating a spending plan for your company over a specified period of time – typically one year. This involves deciding which projects or activities should receive funding, as well as how much should be allocated to each project or activity. The budgeting process should take into account the current and expected financial performance of the company, its goals, and any external pressures it may face. By creating a comprehensive budget, you’ll be able to keep track of your finances as well as set realistic targets and manage resources more effectively.