Budget preparation and implementation in hospitals is important for effective financial planning and management. A hospital budget is a quantitative forecast of revenue and expenses for a defined period that allows the administration to review services and plans. Key aspects of hospital budgeting include preparing income, expenditure, and equipment accounts. Income considers patient volume and costs while expenditures cover salaries, supplies, drugs, and construction. Implementing the budget ensures resources are allocated according to priorities and needs. Advantages include better financial control, decision-making, and exposing sources of overspending.