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"Types of Budgets that organizations can use"

Budgeting is creating a financial plan for a specific period, such as a month, quarter, or year
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Budgeting is a crucial aspect of accounting and
financial management
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The budgeting process typically begins with forecasting, in which estimates of future revenue
and expenses are made based on historical data and other relevant information
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Once approved, the budget is used as a benchmark against actual financial performance
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Budgeting is a continuous process; organizations often regularly review and update their
budgets to reflect changing circumstances and goals
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However, a well-designed budget can provide a helpful framework for financial
decision-making and help organizations achieve their financial goals
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They are typically used to manage day-to-day
operations and cover salaries, rent, and supplies
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These estimates
are then used to create a budget reviewed and approved by management
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This
allows organizations to identify variances between actual and budgeted results and take
corrective action if necessary
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They also provide a framework for financial decision-making
and help organizations to achieve their financial goals
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However, a well-designed operating budget can
provide a helpful framework for financial decision-making and help organizations achieve their
financial goals
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These budgets are usually used to plan for large-scale
projects and investments that significantly impact the organization's financial performance
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The costs associated with these projects are then estimated, and a
plan for funding the projects is developed
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The
budget is then used as a benchmark against which actual performance is measured, and any
variances are analyzed to identify any issues or opportunities for improvement
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They also provide a framework for financial decision-making
and help organizations to achieve their long-term financial goals
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It helps organizations to anticipate and plan for cash
shortages or surpluses and manage their short-term liquidity
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These
estimates are then used to create a budget reviewed and approved by management
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This allows
organizations to identify variances between actual and budgeted results and take corrective
action if necessary
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They also provide a framework for financial decisionmaking and help organizations to achieve their financial goals
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It is a detailed projection of the company's economic activities for a specific period,
usually one year
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The master budget is essential for a
company because it helps management to plan for the future and make informed decisions
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Zero-Based Budgeting
Zero-based budgeting is a method in which all expenses must be justified for each new period
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All prices are analyzed,
and their relevance and necessity are evaluated
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Performance Budgeting
Performance budgeting is a method that focuses on measuring the performance of a company's
programs and activities
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It is also used to identify areas where improvements can be
made
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Flexible Budgeting
Flexible budgeting is a budgeting method that adjusts for changes in business conditions
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Flexible budgeting allows
companies to respond to changes in the economy, market conditions, and other factors
affecting their operations
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Rolling Budget
Rolling budget is a method that continually updates the budget as new information becomes
available
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This approach allows companies to respond
more quickly to changes in the business environment and adjust as needed
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