Budgeting

What is Budgeting?

Budgeting is the process through which individuals or businesses plan their finances for future periods, helping to manage income and expenses effectively. A budget serves as a financial blueprint that allocates resources to achieve objectives, track cash flows, and control expenditures within an organization or project.

Short Description: The process of creating a plan to spend an entity's resources, thereby managing both future income and expenditures.

• Income: Predict and plan for expected revenues, including sales, services, and other financial sources.
• Expenses: Forecast and allocate funds towards operational costs, investments, and unforeseen expenditures.
• Goals: Set financial targets and strategies to help monitor progress and guide decision-making.
• Adjustments: Make necessary changes to the budget based on actual financial performance and variances to ensure alignment with objectives.

Effective budgeting helps maintain financial discipline, supports strategic planning, and provides a framework for evaluating financial performance, enabling informed decisions through fiscal periods.