Budgeting or Planning – Which is most important for your organization?

Steve Player recently penned the article “Going Beyond the Budget” for Business Finance Magazine, where he opined that companies must move beyond the budget and focus more on planning. His view is that “budgeting is about money, while planning is about things – units sold, headcount required, truckload shipments, and so on. Budgeting sets limits; planning figures out what’s possible.”

Let’s discuss what is really happening in companies today. Does your organization focus more on budgeting or planning? Which do you think is more beneficial for your company?