Budget Should Not Be Regarded As A Master But As A Servant

It is a detailed plan of all the economic activities of the business. Help in planning, coordination and control. The budget is only a source and not an objective and, therefore, the budget can not take the place of management, while it is only a management tool. It needs to be updated, corrected and controlled whenever circumstances change.

The budget is a means to achieve business, it is not an end in itself. A budget acts as a business barometer. In general, it is prepared in light of past experience. It is a constant effort of the administration. In addition, the different types of budgets are prepared by the industries according to the commercial requirements. Therefore, the budget should be considered not as a master, but as a servant.