All organizations need to plan their business and make projections about how they will do in the future; next week, next month, or maybe a year ahead. The most common management tool for planning a business is budgeting. A budget is an action plan for the whole company with goals and defined actions for each department. It shall contain expected consequences expressed in financial terms and be based upon expressed assumptions and conditions for a defined period.

Required: 1. Briefly explain on budgets and business planning process. 2. Formulate a sample cash budget and sales budget 3. Evaluate what to include in your business annual plan?