Uses of Budgeting
- The Bookkeeping Advisory Team
- Nov 4, 2023
- 1 min read
In this blog, we will discuss how budgeting can help in the management of your business finances. Here are three major uses of budgeting:
1. Expense Control – One of the primary uses of budgeting is controlling expenses. By setting spending limits for different categories, you can identify unnecessary costs and cut down on wasteful unnecessary spending.
2. Revenue Planning – By forecasting sales and income, you can set realistic revenue targets and track your progress towards achieving them.
3. Cash Flow Management – It cannot be emphasized enough that managing cash flow is critical for business sustainability. A budget helps you anticipate cash surpluses and shortages, allowing you to prepare for lean months and invest wisely during prosperous times.
