More times than not people think of budgets for personal or business use – and at the high level. And maybe even an event. But we often don’t think about budgeting for other things that may need to be individually managed in our business. Most budgets refer only to the cost or expense but there are a few that factor in revenue as well.
While there are various types of budgets (sales, marketing, expenditure, events) they all fall into one of these four categories.
There is the typical cash flow budget. This budget helps you, as the business owner, determine if there will be enough cash to cover expenses on a monthly basis.
A capital budget is used to help you determine whether or not investing in a capital expenditure, such as equipment, vehicle or new building, is worth the investment over the long term.
A project budget consists of all of the costs that would be or could be directly associated with that project. This budget allows you to give a true estimate as to what it will cost to complete that project or task.
A sales or revenue budget is designed to help you establish how much income will come in the door and during which months. It is usually built around the goals of your business.
While each one of these budget are different, they all serve one purpose – to help you manage the inflows and outflows of your business so that your business can THRIVE!
What other types of budgets have you had to create in your business?
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