Annual Budget
An annual budget is a financial plan that outlines expected income and expenses for a year. It helps individuals, businesses, and governments allocate resources effectively, ensuring that spending does not exceed income. By tracking these financial activities, organizations can make informed decisions and adjust their plans as needed.
Creating an annual budget typically involves estimating revenues from sources like sales, taxes, or investments and forecasting costs for areas such as salaries, supplies, and utilities. This process promotes financial discipline and accountability, allowing for better management of funds throughout the year.