A budget is the sum of the money allocated for a particular purpose and the summary of intended expenditures, along with the proposals for how to meet them. It is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. A budget helps a business to take finance related decisions wisely. It is much more than just financial numbers. Budgets for income/revenue and expenditures are prepared in advance and then compared with actual performance to establish any variance. Thus budgeting is the basis for all businesses success. It helps with both planning and control of the finances of the business.
HOW TO FORMULATE A BUSINESS BUDGET? :
