Individual and Small Business Budgeting

The concept of budgeting has to do with forecasting revenues and expenditures and measuring that forecast against actual financial operations performance. The budget forecast serves as a reasonably accurate prediction of whether or not your business operations will result in a profit, loss, or break-even. Whenever both the actual and the budgeted figures are in close alignment it is a good indication that business owners/managers understand their business and have been steering it in the intended direction. This also gives shareholders and investors peace of mind and confidence in your business.