Budgeting is a crucial aspect of business planning, whether the business is a start-up or an established operation. It is a process of making a plan of future income and expenses, capital expenditures, and cash requirements over a period of time, generally within a 12-month period.
The most common budget consists of income and expenses, where projected revenues and costs are determined based on reliable information to achieve the desired profit.
Budgeting is an effective monitoring tool in measuring the financial performance of the business by comparing the actual results of operations versus budget.
by Fe Soncayaon, CPA, CGA | FSS Accountinglink Professional Corporation or FAPC | 647-526-4873 | info@fssaccountinglinkpc.ca | www.fssaccountinglinkpc.ca
