Budgets are the official business plans that companies use to show their projected revenue and expenses for a set period of time, typically one year. They provide a guide on how to allocate resources and plan long-term goals in a way that will be most profitable and beneficial to the company. The budgeting process is integral to successful financial management, as it helps measure performance, manage costs, and identify areas of improvement. Business budgets can also be used to empower employees, giving them a clearer direction on what allocations must be made in order to reach targets and objectives.