GENERAL KNOWLEDGE

Detailed explanation-1: -A budget is a tool to track when and how you earn or spend money. Creating a budget is an important pillar of your overall success and security. It allows you to oversee and better understand whether your business has enough revenue (incoming money) to pay its expenses.

Detailed explanation-2: -Spreadsheet. The most common small business budgeting tool is the spreadsheet, which you can use to create a variety of useful reports. Many computers come with software that includes a basic spreadsheet you can use to create a budget.

Detailed explanation-3: -Financial budgeting is the process of planning company expenses and revenues for a time period. Budgets set forth the plans of management in financial terms. This includes allocating financial resources and identifying available cash flows for required spending.

Detailed explanation-4: -Budgetary control helps management in getting things back on track. The uses of budget controls are to spot where reality departs from the projections, fix problems and incentivize managers to do better. For example, the University of Cambridge says, the university’s departments are given annual budgets for equipment.