Topic 7: Budgets and the budgeting process and approaches to financial and operational analysis Name Course Instructor Date Introduction The budgeting process is important in financial data analysis since organizations prioritize needs and set aside resources to meet and match the identified needs. As such, the budget is a tool that is often accompanied in forecasting control as well as the evaluation of resources. The accounting system helps in budget preparation, where actual results are compared with the budgeted items and investigations undertaken to determine the causes of variances. For instance, performance evaluation focuses on steps undertaken to control costs, operating expenses and monitoring revenue (Goosen, 2008). In the case of public entities, the budgeting preparation plays a vital role in financial planning by linking budgeting with setting policies, where such entities need to get approval from boards before passing the approved budgets (Nces.ed.gov, n.d.). Aligning budgeting with strategic planning Even though, management accountants understand the importance of aligning resources with strategic plans, the traditional budgeting process needs to be revamped to improve forecasting capabilities. Forecasting aid in decision-making whereby accurate and credible information is useful for predicting (Gfoa.org, 2014). The budget outlines the elements to ensure