Budgeting is the process of creating a detailed plan that outlines an individual's or an organisation's expected income and expenses over a specific period of time, usually for a month, quarter or year. The primary purpose of budgeting is to allocate financial resources effectively, set financial goals, and monitor and control spending to achieve those goals.
ELEMENTS OF A BUDGET
A budget starts by estimating all sources of income, such as salaries, wages, rental income, investments, or any other form of revenue. This represents the money coming into your business.
Budgeting also involves categorising and estimating all planned expenses or expenditures, including fixed costs, such as rent or mortgage or loan payments,
