Financial Budgeting
                     MIT School of Distance 
Education
Financial Budgeting 
 
Introduction to Financial Budgeting 
▪ Financial budgeting is the strategic 
planning and management process 
through which a company outlines its 
anticipated income and expenses for a 
specific timeframe. It involves creating a 
detailed financial plan that guides the 
allocation of resources, such as funds and 
cash flows, to meet the organization's 
goals and objectives. 
▪ Financial budgeting serves as a 
comprehensive snapshot of an 
organization's financial standing, 
objectives, and cash flow. By consistently 
engaging in operational and financial 
budgeting, a company establishes a 
benchmark for assessing how its real-world 
outcomes deviate from anticipated 
performance. 
Process in Financial Budgeting 
The financial budgeting process for an annual budget typically spans three to six 
months and involves various confidential components. These steps encompass a 
series of strategic activities aimed at developing a comprehensive financial plan:
▪ Establish and communicate management targets and goals
▪ Develop the detailed, final budget to directly support those targets and goals, and 
attach financial documents such as the balance sheet, income statement, and cash 
flow statement
▪ Finalize employee compensation plans (usually this is part of the process)
▪ Compile and adjust budget model and measurement metrics so management can 
assess progress
▪ Review and make final changes
▪ Approval
▪ Disseminate subordinate and/or line of business budgets across the organization
Gartner 5 step zero-based budgeting cycle
Financial 
Transparency 
Value based Strategic 
spending Priorities and 
KPIs
Align, 
Control and evaluate 
monitor and 
optimize
Benefits of Financial Budgeting 
▪ Strategic Planning: Financial budgeting provides a structured framework for 
organizations to set and align financial goals with overall business objectives. It 
helps in outlining a roadmap for allocating resources and achieving financial targets.
▪ Resource Allocation: Budgets assist in allocating resources efficiently. By 
identifying financial needs and priorities, organizations can allocate funds to 
different departments or projects, ensuring optimal use of resources.
▪ Performance Evaluation: Comparing actual financial results with budgeted figures 
allows organizations to identify variances, analyze the reasons behind them, and 
take corrective actions if necessary.
▪ Cash Flow Management: Through budgeting, organizations can anticipate cash 
inflows and outflows. This helps in managing cash flow effectively, ensuring that 
there is enough liquidity to meet operational needs and cover expenses.
▪ Continuous Improvement: The budgeting process allows organizations to learn 
from past performance and continuously improve future financial plans. By 
analyzing variances and adapting strategies, companies can enhance their financial 
management practices over time.
Why pursue PGDM in Finance Management ?
Finance Management professionals need to learn how to identify Financial Budget in 
an Organization.
The PGDM Finance Management course focuses on planning, designing, directing 
and managing the economic activities such as the utilization of capital and 
acquisition of the firm.
With the PGDM Finance Management course, learn skills like mathematical 
proficiency, technological skills, ability to work independently, organization, etc.
Why MITSDE ?
• Learn the basics of Finance
• Learn the basics of brand valuation, intangible assets value drivers, 
and financial impact of functional level strategy
• Learn in-depth about financial modelling
• Learn about various financial markets, mergers and acquisitions and 
international finance
• Understand the tools involved in financial analytics
Potential Careers Opportunities
1) Credit Manager
2) Financial Advisor
3) Equity Analyst
4) Tax Consultant
5) Research Analyst
6) Bank Manager
7) Portfolio Manager
8) Finance Manager
About US
 MIT School of Distance Education is one of the largest distance learning centers in India. We 
offer various Post Graduate Diploma and Certificate programs & Online MBA Courses across 
various industry sectors that include Operations Management, Project, Information 
Technology, Banking and Finance, Digital Marketing, Business Analytics and many more. 
MITSDE has an online assessment system, flexi-learning approach, and provides a state-of 
the-art Learning Management System (LMS) which is in line with its mission 'flexible learning 
opportunities anywhere, anytime, and to provide ultimate convenience, ease, and flexibility 
to our students’.
Advantage of learning with MITSDE
o Self-paced learning
o Regularly updated syllabus
o Live webinars and doubt solving 
o Industry-relevant course offerings
sessions
o Courses taught by Industry Experts
o Quick and highly-responsive student 
o Affordable courses support
o No cost EMI options o Dedicated student support team
Placement Record at MITSDE
MITSDE has a dedicated Placement Cell providing 100% placement, CV building workshops 
and Career Counseling.
Our Student Placement :
Placement Record at 
MITSDE
Contact Us
Address: 
Email ID: [email protected]
MIT Alandi Campus, Pune Moshi-Alandi 
Road, Alandi-412105,Pune Maharashtra 
(India) Website: www.mitsde.com
Phone: 9112-207-207 / 9028-258-
800
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