As business becomes more complex, the need for suitable budgeting and forecasting processes becomes critical. One of the most redeeming qualities of budgeting is that it forces the organizations leadership to establish tangible goals for the coming future. This is inherently good and gives direction to the business and aligns all of the staff from the top to the bottom. While there are many ways to approach budgeting, the resulting financial plan provides a basis by which to measure the organization’s success. Among the numerous benefits of creating a budget, perhaps one of the biggest and most beneficial is the examination of cost drivers. Understanding how costs rise with revenue and where the marginal benefit of adding resources arises is critical for smart business planning.