Which process involves monitoring finances against the planned budget?

The process that involves monitoring finances against the planned budget is best described by budget control. Budget control refers to the ongoing process of tracking actual financial performance against the budgeted amounts, ensuring that expenditures do not exceed what was planned. This practice helps organizations identify variances, which are discrepancies between budgeted and actual figures, and allows for adjustments to be made to stay on track towards financial goals.

In contrast, budget reporting involves communicating financial information to stakeholders, which may not necessarily focus on the monitoring aspect. Budget drafting refers to the initial creation of the budget plan, while budget review typically involves assessing the budget's effectiveness or making revisions after the fact rather than ongoing monitoring. Budget control emphasizes the importance of keeping spending within the limits set in the budget, making it critical for effective financial management.