Month End Glossary

Budget

A budget is an estimation of revenue and expenses over a specified future period of time, used for planning and forecasting.

A budget is a financial plan that outlines the estimated revenue and expenses for a particular period, such as a month, a quarter, or a year. It serves as a valuable tool for individuals, organizations, and businesses to allocate resources, plan expenditures, and project financial performance. Budgeting involves setting goals, estimating future costs, and assessing outcomes against budgeted figures to ensure financial control. For example, a business might set aside a yearly budget for marketing to determine how much to allocate monthly for campaigns and measure against actual spending. A comprehensive budget may include categories such as operating costs, capital expenditures, and savings. Budgets are often revisited and adjusted to reflect changes in financial conditions or objectives, making them dynamic tools for financial planning. Using budgeting tools and techniques can ensure resources are effectively used to meet organizational goals. Tools like Easy Month End aid in the budgeting process by offering efficient checklist management for financial procedures.

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