Budgeting (English)

Giampietro Parolin 

Prof. of Business Strategy - Consultant.   

 

Presentation prepared for the EoC StartUp Lab - Africa 2017 (Cameroon)

 

Budgeting for a business is a process: preparing a detailed statement of financial results that are expected for a given time period in the future: 

  -   "expected" means something that is likely to happen
  -  "future" which is a period in the time to come (a month, a year)
 

Types of budgeting

  • Operating Budget is based primarily on the firm's sales forecast. It is a budget of sales revenue minus expenses and essentially ends up with gross profit. 

  • Cash Flow Budget is a budget showing expected cash inflows (receipts) and cash outflows (expenses). The cash flow budget shows whether or not enough cash will be available to meet monthly expenses.

  • Capital budgeting is budgeting for the large expenses in a business firm. Capital budgeting is budgeting for the fixed assets that the firm needs to work such as plant and equipment.

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