Budget
What is a Budget?
A budget is a financial plan for the future, laid out in dollar amounts.
![bud 1](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-1.jpg)
How it Works
A business needs to plan for the future..
![bud 2](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-2.jpg)
To do this, they lay down a series of detailed budgets.
![bud 3](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-3.jpg)
Sales Budget
A sales budget lays out sales projections for the coming period or periods.
![bud 4](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-4.jpg)
Expenses /Selling and Marketing Budget
Expenses and selling and marketing budgets lay out details of expected expenses involved with operating and promoting the business.
![bud 5](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-5.jpg)
Capital Expenditure Budget (CapEx)
A capital expenditure budget shows how much the business plans to invest in physical assets such as buildings, infrastructure, or equipment in the coming period or periods.
![bud 6](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-6.jpg)
Cash Flow Budget
A business will continually receive and expend cash.
![bud 7](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-7.jpg)
A cash flow budget lays out expected cash receipts and cash expenditures in the coming period or periods.
![bud 8](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-8.jpg)
Sometimes, the business expects to receive more than it pays out.
![bud 9](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-9.jpg)
At other times, it will pay out more than it receives.
![bud 10](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-10.jpg)
Master Budgets
A master budget is made up from information provided by all other budgets.
![bud 11](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-11.jpg)
A budgeted income statement will project the business’s likely income and expenditure.
![bud 12](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-12.jpg)
While a budgeted balance sheet will show projections for assets and liabilities.
![bud 13](https://seeaccountingnow.online/wp-content/uploads/2021/08/bud-13.jpg)