Budgeting in Finance
What is Budgeting in Finance
Budgeting in Finance is a process of finding out the expected performance of the company through detailed projections of the financial results and operations of the business. Finance department majorly plays a key role in preparing the budget and it is done through consultation of the higher management.
Top topics discussed in this budgeting in Finance tutorials-
- What are the Budgeting Types?
- How do you define Budgeting in Finance?
- What is the difference between Budgeting and Forecasting?
- What is the difference between Traditional Budgeting and Zero Based Budgeting in Finance?
- Difference between Fixed Budget and Flexible Budget in Finance?
What is Budgeting?
The budget is the plan which intends to figure out expected operations revenue and expenses of an organization for a future time period. Here we discuss various types of budgeting as well.
Budgeting vs Forecasting
Budgeting and forecasting is the process of determining an organization‘s long-term as well as short-term financial goals in detail.
Traditional Budgeting vs Zero Based Budgeting in Finance
Here we discuss these two types of budgeting. Traditional budgeting is computed by keeping the previous year’s budget as base. Whereas Zero-based budgeting is computed by keeping the starting point as zero.
Fixed Budget vs Flexible Budget
Fixed budget is a kind of budget where income and expenditure are pre-determined. Whereas Flexible budget is a budget that is flexible as per the needs of the hour.
Zero Based Budgeting
Zero-based budgeting allows organizations to start with zero for each item in their budgeting list.