Glossary › Budget

Budget

A financial plan setting expected income and spending for a period — the yardstick actual results are measured against.

A budget sets out planned revenue and expenses for the period ahead, by category. It converts intentions into numbers: what you expect to earn and what you permit yourself to spend.

Budgets earn their keep through comparison — reviewing actuals against budget monthly reveals what changed and where course corrections are needed.

Related terms

Variance Cash Flow Forecast Profit & Loss (P&L)

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