Final answer:
Once a cash flow budget and sub budgets are established, a master budget can be created, which serves as a comprehensive financial plan. This plan helps manage finances and exposes wasteful expenditures, ultimately contributing to financial goals.
Step-by-step explanation:
Once a cash flow budget and sub budgets have been created, a comprehensive financial plan or master budget can be developed. This financial plan outlines the organization's financial and operational goals and includes detailed plans for income and expenditures. Having a robust budget and adhering to it can help identify any wasteful expenditures and contribute to achieving ultimate financial goals. Since policies and unexpected events can dramatically shift budgets, it is crucial to regularly review and adjust them accordingly. In essence, creating a budget is the act of balancing income against expenses to ensure that there is enough money coming in every month to cover all necessary costs.