If budgets are inflexible and a crucial forecast can't be adjusted, it can lead to several problems. Firstly, it can cause excessive stress for the person making the budget as they have to ensure absolute accuracy. Secondly, it can hinder the company's ability to adapt to changes in the market or business environment. This lack of flexibility can also prevent the company from taking advantage of new opportunities that arise. Lastly, it can lead to poor resource allocation, as resources may be locked into areas that are no longer as profitable or beneficial as initially forecasted.
Simplify the process of budget creation with our Budgeting Model template. This template includes ex...
Download model