Budget Analysis is the process of reviewing and evaluating an organization's financial plan to ensure that resources are allocated effectively. It involves comparing actual spending against the budgeted amounts to identify variances and understand the reasons behind them. This analysis helps organizations make informed decisions about future spending and resource allocation. By conducting a Budget Analysis, organizations can identify areas where they may be overspending or underspending. This information is crucial for improving financial performance and achieving strategic goals. Ultimately, effective budget analysis supports better financial management and helps organizations stay on track with their objectives.