Who should be involved in the development of the budget?

Question

Why is it important to have management approval of a budget? To what extent does the budget serve as a goal and to what extent does the budget serve as a roadmap for management?

Answer 1

well, for starters, having management approve the budget serves as a checks & balances system to keep people from bending rules and/or running the business into the ground in financial debt. in addition, having a goal to follow helps business keep on track and serves as a guide. without a guide... spending can become way out of control.