What is a Budget?

A budget can be simply defined as a financial document used to project future income and expenses. A budget is very important when carrying out an organization’s objectives, strategies and assumptions.

A budget can be drawn up for each financial year and is usually decided on the estimated value of sales and cost of an organization.

Different budgets can be created depending on different aspects of business. Here are some of the well known budgeting plans,

• Performance Budget
• Cash Budget
• Forecast Budget