What is a Business Budget?
A business budget is an outline of an organization’s revenue, expenses, and profit over a period of time—generally, monthly, quarterly, or annually. A good business budget assigns a purpose to every dollar your business earns. For instance, some money might go toward bills or business growth. Others will help fund daily operational expenses and take-home pay for yourself and your staff.
A solid business budget serves as a road map for spending and earning. It creates a lens into your organization’s financial future and facilitates better decisions all around. Ready to get your business idea off the ground? You’ll need to consider startup costs. Wondering if you can or should purchase new equipment this year? Refer to your business budget.
Maybe you’re looking for ways to cut down on expenses. Your business budget can present a view of your financial health, including where you’re spending money and where you might benefit from cutting back. With better foresight, you can cultivate better business performance and improve earnings from the last quarter or the last year.