A business budget is a financial plan that outlines the expected income and expenses of a business over a specific period of time, usually a year. It is a tool that helps businesses manage their money by tracking their income and expenses and making informed decisions about their spending and saving habits.
A business budget typically includes categories such as revenue, cost of goods sold, operating expenses, debt repayment, capital expenditures, and taxes. The goal of a business budget is to balance income and expenses so that businesses can achieve their financial goals, such as increasing profitability, expanding operations, or investing in new projects.
To create a business budget, businesses typically start by identifying their sources of revenue and estimating their expenses. They then allocate their revenue to various expense categories and adjust their spending as needed to stay within their budget.
A business budget can be created using accounting software, spreadsheets, or specialized budgeting tools. It is an essential tool for any business owner or manager who wants to improve their financial performance and achieve their business goals.
Business Budget
« Back to Glossary Index