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A budget is the document which forecast expenses and revenues. The process of making budgets is known as budgeting. The purpose of budgeting is to plan the savings and spending of the company during a specific period. Budgeting is considered very important because it states the monetary plan of the company. There are two primary aims of budgeting. Firstly, it provides the planned revenues and expenses and secondly, it actually helps in the financial operation of the business. Therefore, budgeting is the allocation of the financial resources available to the company and it is considered a very important activity of the company.
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