Budget: plan of income and expenses
Note
The Budget section is still under development. It is already in the blue side menu of the Finance app, third after Transactions and Plan vs. Actual.
A company budget is a financial plan prepared and approved for a specific period of time, long-term or short-term. It shows the company's goal: the planned amount of income and expenses for that period, as well as the amount of capital to be raised that is needed to reach the goal.
Approaches to budgeting
| Approach | What it is based on |
|---|---|
| Output or input | Budgets for material costs and other costs are calculated based on the actions planned at the unit level |
| Specific actions | Overhead costs are provided for in the budget based on the expected spending on various activities |
| Minimum level | The organization sets a base amount for budget items and requires an explanation or justification for any amount above the minimum |
What is available now
Until the section is released, the plan is compared with actuals manually using the data of the Transactions section:
- charts for any period broken down by category and account: the actual amounts;
- the category directory: the structure of income and expenses the budget will be built on;
- the dashboard: your own tile via the ➕ button for daily monitoring of a chosen category.
The profit and loss statement is being prepared in the Plan vs. Actual section.