Budget 377116 225854818 2008-07-15T18:37:20Z Jim.henderson 2255048 Rv anonymous vandalism to RapidR at 17:06, 1 July 2008 '''Budget''' (from [[french language|french]] ''bougette'', purse) generally refers to a list of all planned expenses and revenues. A budget is an important concept in [[microeconomics]], which uses a [[budget line]] to illustrate the trade-offs between two or more [[good (economics)|goods]]. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting is to: # Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. # Enable the actual financial operation of the business to be measured against the forecast. ==Business Start-up Budget== Description of the expected financial results of your business activities. Initial process of calculating your small business start-up costs list everything you will need to purchase including both tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount you are putting into this reserve. ==Corporate budget== The budget of a [[company (law)|company]] is compiled annually. A finished budget usually requires considerable effort and can be seen as a financial plan for the new financial year. While traditionally the Finance department compiles the company's budget, modern [[software]] allows hundreds or even thousands of people in the various departments (operations, human resources, IT etc) to contribute their expected revenues and expenses to the final budget. If the actual numbers delivered through the financial year turn out to be close to the budget, this will demonstrate that the company understands their business and has been successfully driving it in the direction they had planned. On the other hand, if the actuals diverge wildly from the budget, this sends out an 'out of control' signal and the share price could suffer as a result. ==Event Management Budget== A budget and planning tool to assist in calculating and meeting the costs associated with a business or social event. It is a fundamental tool that enable the event director to predict with reasonable accuracy whether the event will result in a profit, a loss or will break-even. ==Government budget== {{details|Government budget}} The budget of a [[government]] is a summary or plan of the intended revenues and expenditures of that government. In the [[United States]], the federal budget is prepared by the [[Office of Management and Budget]], and submitted to Congress for consideration. Invariably, Congress makes many and substantial changes. Nearly all American states are required to have balanced budgets, but the federal government is allowed to run deficits. In the [[United Kingdom|UK]] the budget is prepared by the [[Chancellor of the Exchequer]], the second most important member of the government, and must be passed by [[Parliament of the United Kingdom|Parliament]]. Parliament seldom makes changes to the budget. ==Personal or family budget== {{details|Personal budget}} In a personal or family budget all sources of [[income]] (inflows) are identified and [[expenses]] (outflows) are planned with the intent of matching outflows to inflows (making ends meet.) In [[consumer theory]], the equation restricting an individual or household to spend no more than its total resources is often called the [[budget constraint]]. ==See also== {{multicol}} * [[Budget crisis]] * [[Budget overrun]] * [[Budget surplus]] * [[Budget theory]] * [[Canadian federal budget]] * [[Chancellor of the Exchequer]] (UK budget) * [[Deficit]] {{multicol-break}} * [[Government financial reports]] * [[Personal finance]] * [[Strategic misrepresentation]] * [[United States budget process]] * [[Union budget of India]] * [[United Kingdom budget]] * [[Variance analysis (accounting)]] {{multicol-end}} == References == [[Category:Budgets]] [[af:Begroting]] [[ast:Presupuestu]] [[bs:Budžet]] [[bg:Бюджет]] [[da:Budget]] [[de:Budget]] [[et:Eelarve]] [[es:Presupuesto]] [[eo:Buĝeto]] [[fr:Budget]] [[gl:Orzamento]] [[hi:बजट]] [[hr:Proračun (ekonomija)]] [[it:Budget]] [[he:תקציב]] [[ka:ბიუჯეტი]] [[lv:Budžets]] [[lt:Biudžetas]] [[nl:Begroting]] [[ja:予算]] [[no:Budsjett]] [[pl:Budżet]] [[pt:Orçamento]] [[ro:Buget]] [[ru:Бюджет]] [[simple:Budget]] [[sr:Буџет]] [[sh:Budžet]] [[fi:Budjetti]] [[sv:Budget]] [[uk:Бюджет]] [[zh:財政預算案]]