A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures on a periodical base.
Types of Budgets for Business:
1.Master Budget:
A master budget is an aggregate of a company's individual budgets designed to present a complete picture of its financial activities.
2. Operating Budget:
An operating budget is a forecast and analysis of projected income and expenses over the course of a specified time period.
3. Cash Flow Budget:
A cash flow budget is a means of projecting how and when cash comes in and flows out of a business within a specified time period.
4.Financial Budget:
A financial budget presents a company's strategy for managing its assets, cash flow, income, and expenses.
5. Static Budget:
A static budget is a fixed budget that remains unaltered regardless of changes in factors such as sales volume or revenue.