Response to the following problem:
You Decide: Is budgeting a necessary tool to help a fast-growing company plan and prepare for the future, or is budgeting too complicated and subjective for a growing company?
A budget is a good tool for a company to use to determine how it will secure the necessary finances to accomplish its business goals. However, a fast-growing company does not always know how its needs will grow or change over a short time frame. In addition, often a new company has no history to use in guiding budgets and, as a result, budgeting often involves substantial guesswork.