Question

How are budgets related to organizational strategies?

Answer 1

Organizational strategies lays down the directions to achieve the goals of the organization and budget lays down the money required to achieve those goals. Budgeting is one of the part of the organizational strategy.

Once, the organization sets up the current and expected future financial position, the financial team sets up the budget. Hence, budget is one of the key items in an organizational strategy. A budget is the core of the strategy.

Budgeting helps an organization to plan ahead and monitor those plans so that they are working effectively in the achievement of objectives. If any variance occurs, adjustments can be made accordingly.
A budget is the map of the organizational strategy and hence they are related.