May 17th, 2018
Budgeting is an important aspect of business planning whether the business is a start-up or operational. It is a process of making a plan of future income and expenses, capital expenditures and cash requirements over a period of time, generally within a 12-month period.
The most common budget consists of income and expenses where projected revenues and expenses are determined based on reliable information to achieve the desired profit.
Budgeting is an effective monitoring tool in measuring the financial performance of the business by comparing the actual results of operations versus budget.