You are the manager of the XYZ Company. For the first time in the company's history you plan to involve department managers and supervisors in the annual budgeting process. At an upcoming kick-off meeting, you want to make sure the supervisors and managers understand what budgeting is and most importantly why it is important for the firm's success.

Explain at least 3 reasons why budgeting is important to a firm.

Understand why organizations budget and the processes they use to create budgets, and recognize situations that present potential ethical and legal issues and develop solutions for those issues.