Budgeted Balance Sheet
What is a Budgeted Balance Sheet?
A budgeted balance sheet is a balance sheet showing projections based upon a series of budgets.
How it Works
Management will look at their current financial situation.
From this information, they can make projections about the future.
When making projections, management will lay down many budgets.
Then, as part of a master plan, they will lay down a budgeted income statement and balance sheet.
The budgeted income statement will show the expected revenue and expenses based upon the projections contained in the various operating budgets.
It will show how the business plans to increase revenue or decrease operating costs.
The implications of any proposed operational changes will be reflected in the budgeted balance sheet .
Once completed, senior management will review the plans and approve them.
