Budgeting creates a financial plan for future periods, estimating expected revenues and expenses to control spending and achieve goals.
Prevents overspending
Establishes targets
Measure actual vs budget
Direct resources efficiently
Income forecast
Example: ₹100k per month...
Spending plan
Example: Salaries, rent, marketing...
Actual vs budget difference
Example: +₹10k favorable...
Continuously updated
Example: Add quarter as each passes...
Past performance
Sales forecast
Cost projections
Create spreadsheet
Management sign-off
Monitor monthly