Three years ago, Bethany started a shop in which she sold handmade bead bracelets. She and her supplier beads and more had a great working relationship. The supplier always provided the product on time and Bethany always paid the supplier in a timely manner. business was great Bethany's company had been selling quite well and had always maintained a positive cash flow. Although everything was going well. Bethany realized she spent funds on materials and other things without keeping track of where the money went.

She decided to create a formal company budget each quarter she reviewed the budget to determine if she had stayed on budget. After the first two budget reviews, she realized that she had firmly adhere to the budget and she gave herself a pat on the back for a job well done.