Why is the budgeting process considered to be ongoing?

The budgeting process is considered to be ongoing because it allows for future planning and adjustments. This dynamic approach recognizes that a business operates in a constantly changing environment, where economic conditions, market trends, and organizational priorities can shift throughout the year.

By continuously evaluating and revising the budget, organizations can respond effectively to these changes, make informed decisions, allocate resources appropriately, and align their financial goals with their operational strategies. This adaptability is crucial for effective financial management, as it enables businesses to seize opportunities and mitigate risks as they arise, rather than being locked into a rigid financial plan established only at the beginning of the fiscal period.

Continuous monitoring and adjustment of the budget ensures that it remains relevant and useful in guiding the organization's financial decisions, contributing to overall fiscal health and strategic planning.